Contracts Outline - Chapter 1 & 2

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Questions and Answers

What is the implication of making a counteroffer?

It effectively rejects the original offer. (correct)

It requires the original offeror to respond immediately.

It confirms mutual interest without changing terms.

It signals acceptance of the original offer.

Which of the following conditions can terminate an offeree's power of acceptance?

Understanding of the offer

Death of the offeree (correct)

Express acceptance from the offeror

Continuation of negotiations

In the context of acceptance, what does the mirror-image rule state?

Silence can be interpreted as acceptance.

Acceptance must be communicated immediately.

Terms must match the original offer exactly. (correct)

Acceptance can include additional terms.

What is a preliminary negotiation in contract law?

A manifestation of willingness to bargain without commitment. Signup and view all the answers

What happens if a response to an offer includes new terms?

It is treated as a counteroffer. Signup and view all the answers

What does the mailbox rule dictate about offers and acceptances?

An offer is made when received, and acceptance when sent. Signup and view all the answers

In contract formation, what is considered an unequivocal acceptance?

A clear and complete agreement to the terms of the offer. Signup and view all the answers

Which statement about silence as acceptance is correct?

Silence may serve as acceptance only in specific cases. Signup and view all the answers

What constitutes sufficient consideration for a promise?

A detriment incurred by the promisee induced by the promisor's promise Signup and view all the answers

Which of the following statements correctly reflects the concept of forbearance?

Giving up your legal right to do something in exchange for a promise Signup and view all the answers

What is the general rule regarding past consideration?

It is always considered insufficient for current promises Signup and view all the answers

Which class of contracts does NOT have to be in writing under the Statute of Frauds?

Mutual promises of wedding gifts Signup and view all the answers

What is a distinguishing feature of consideration in promises that are socially valuable?

They must have been bargained for by both parties Signup and view all the answers

What does UCC 2-206 state about an offer to make a contract?

It invites acceptance in any reasonable manner. Signup and view all the answers

Which of the following statements is true regarding the Material Benefit Rule?

A moral obligation can support a promise if a benefit was received. Signup and view all the answers

In the context of the consideration doctrine, what does 'detriment' typically refer to?

A sacrifice or loss incurred by the promisee based on the promise Signup and view all the answers

What does the Statute of Frauds primarily concern?

The enforceability of certain types of contracts Signup and view all the answers

What is the essence of the Jannusch v. Naffziger case regarding contracts?

Some contract terms can be absent but the essential terms must be clear. Signup and view all the answers

What can render a promise lacking in consideration?

A promise that involves no exchange or value Signup and view all the answers

Which of the following agreements must be in writing according to the Statute of Frauds?

A promise to pay an estate's debts with personal funds Signup and view all the answers

What does the Predominant Purpose Test evaluate?

Whether the contract is primarily for the sale of goods or for providing services. Signup and view all the answers

According to the considerations doctrine, what ensures the promisor's intent to be legally bound?

The exchange of something valuable between the parties Signup and view all the answers

Which of the following does NOT describe a situation covered under the Statute of Frauds?

Sale of goods priced at $400 Signup and view all the answers

Which test focuses on the basis of legal action for defects in contracts?

The Gravamen Test Signup and view all the answers

Under UCC 2-207, how is a purported acceptance with different terms treated?

It is considered an acceptance despite the differing terms. Signup and view all the answers

Which of the following factors does the Coakley test consider?

The language of the contract. Signup and view all the answers

What is a key characteristic of the Bonebrake Test?

It identifies whether services or goods dominate the contract. Signup and view all the answers

Under the minority rule, what is the focus of the Gravamen Test?

The defects in the installation of a product. Signup and view all the answers

What must a party prove to recover lost profits?

They must provide evidence of certainty regarding the loss. Signup and view all the answers

What distinguishes a gratuitous promise from an enforceable promise?

A gratuitous promise is made without any expectation of consideration. Signup and view all the answers

In the context of promissory estoppel, what can substitute for consideration?

Detriment or reliance. Signup and view all the answers

Equitable estoppel arises from which principle?

Fraudulent misrepresentation. Signup and view all the answers

What is the primary goal of a promise that reasonably induces action or forbearance?

To prevent injustice by enforcing the promise. Signup and view all the answers

What was determined in the case of Kirskley v. Kirksley?

There were no legal obligations due to lack of consideration. Signup and view all the answers

Which statement best describes the nature of lost profits in legal terms?

They must be shown with reasonable certainty to be recoverable. Signup and view all the answers

Which of the following is NOT a component of a gratuitous promise?

Bargained-for exchange. Signup and view all the answers

What is required under the Statute of Frauds for a contract regarding the sale of goods priced at $500 or more?

It must include a detailed description of the goods and be signed by at least one party. Signup and view all the answers

Which exception to the Statute of Frauds applies to contracts not involving land or the sale of goods?

Promissory estoppel exception Signup and view all the answers

What does the 'Part performance' doctrine require to take a contract out of the Statute of Frauds?

Performance that leads a reasonable outsider to conclude that the contract exists. Signup and view all the answers

Which of the following conditions does NOT trigger significant circumstances for promissory estoppel?

The emotional state of the promisor. Signup and view all the answers

What is meant by the 'unequivocally referable' test in the context of the Statute of Frauds?

Conduct that verifies the existence of an oral agreement is sufficient. Signup and view all the answers

Under the Statute of Frauds, which of the following scenarios does NOT require a writing?

Contracts for employment lasting more than one year. Signup and view all the answers

Which of the following statements is true regarding signatures under the Statute of Frauds?

Any mark made with intent can be considered a signature. Signup and view all the answers

What does the Statute of Frauds require for a sales contract for goods that involve several shipments?

A written agreement for the total quantity of goods. Signup and view all the answers

What do courts consider when determining whether to order specific performance for a land contract?

The unique nature of the land and evidence of performance. Signup and view all the answers

Which of the following is a necessary element for a writing to be enforceable under the Statute of Frauds?

It must identify the goods clearly. Signup and view all the answers

Study Notes

Contracts Outline - Chapter 1: Introduction (Week 1)

A contract is an agreement between two or more parties about future actions.
A contract is a promise or set of promises for which the law creates a remedy for breach.
Promises can be oral, written, or implied.
Elements of a contract include:
- Agreement between parties (actual and written)
- Agreement accurately reflects the "agreement-in-fact."
- Rights and duties created by the agreement.
The sale of goods involves the UCC; other sales involve common law.

Contracts Outline - Chapter 2: Contractual Obligation (Week 1.5 - 6)

Contract Formation
- Traditionally, a binding contract forms through a bargained-for exchange.
- Mutual Assent: Manifestation of mutual agreement (offer and acceptance)
  - Objective Perspective: Reasonable person analysis determines the intention of the parties
  - Subjective Perspective: Meeting of the minds - actual intentions
  - Offer and Acceptance.
    - Offers must be sufficiently definite and explicit; advertisements aren't offers.
    - Acceptance must mirror the terms of the offer. A counteroffer constitutes rejection of the original offer.
- Consideration: A promise made by one party in exchange for the promise, performance, or forbearance of the other party(ies).
  - Mutual Exchange: Both parties are giving up something
  - A unilateral mistake doesn't prevent a contract (Ray v. Eurice Bros.)
  - A signed agreement is binding, even if the signer didn't read it.
  - Mail Box Rule: Offer is effective when received, Acceptance becomes effective when sent
Offer and Acceptance in Bilateral Contracts
- Bilateral contracts are formed by exchange of promises
Additional Rules for Contracts
- Preliminary Negotiations usually don't constitute offers.

Contracts Outline - Chapter 3

Gratuitous Promise: A promise made without consideration.
Promissory Estoppel: A promise that induces reasonable reliance by another; if injustice results from the reliance, the promise is enforceable.
Lost Profits: Usually must meet a strict standard to be recoverable.
Equitable Estoppel: Arises when one party induces another to act to their detriment; the inducing party is prevented from denying the truth of their statement.
Charitable Subscription:
- Promises to charities are usually enforceable, even if they are gratuitous.
Statute of Frauds: Some contracts must be in writing in order to be enforceable.
Quasi-Contract: Some contracts are implied by law, especially when one party is unjustly enriched by another's performance.
Material benefit rule: A past benefit can be sufficient consideration if a promise is made in recognition of the prior benefit
Unaccepted Offers
- Courts might enforce some unaccepted offers under promissory estoppel (or detrimental reliance) if one party has relied on the offer to their detriment in a reasonable way
Restitution: The principle of restitution governs situations in which one party unjustly enriches another; the unjustly enriched party is obligated to compensate the other party to the extent of the enrichment

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Description

This quiz covers the foundational elements of contracts as outlined in Chapter 1 and Chapter 2. It includes definitions, essential components of contract formation, and the significance of mutual assent. Test your understanding of contract law principles and their applications.