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Questions and Answers
An advertisement offering items for sale is considered a ______ offer.
An advertisement offering items for sale is considered a ______ offer.
unilateral
The advertisement in Leonard v. Pepsi was not intended as a serious ______.
The advertisement in Leonard v. Pepsi was not intended as a serious ______.
offer
In Arnold Palmer v. Fuqua, the parties reached mutual ______ without a signed contract.
In Arnold Palmer v. Fuqua, the parties reached mutual ______ without a signed contract.
assent
In Dickinson v. Dodds, the court required more evidence through trial to determine the parties' ______.
In Dickinson v. Dodds, the court required more evidence through trial to determine the parties' ______.
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P claimed he earned the Harrier Jet through the ______ promotional ad.
P claimed he earned the Harrier Jet through the ______ promotional ad.
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D left the offer open until Friday at 9 am on June 12th in a ______ situation.
D left the offer open until Friday at 9 am on June 12th in a ______ situation.
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The concept of ______ pactum refers to a bare promise that is not legally binding.
The concept of ______ pactum refers to a bare promise that is not legally binding.
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In the legal dispute, P issued a restraining order after D started negotiations with another ______.
In the legal dispute, P issued a restraining order after D started negotiations with another ______.
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UCC § 2-306 measures quantity by the output of the seller or by requirements of the ______.
UCC § 2-306 measures quantity by the output of the seller or by requirements of the ______.
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Parties that leave a contract open and indefinite as to the quantity of goods give the plaintiff the ______ entitlement.
Parties that leave a contract open and indefinite as to the quantity of goods give the plaintiff the ______ entitlement.
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A valid requirements contract needs to fix for ______ in quantity.
A valid requirements contract needs to fix for ______ in quantity.
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Under the doctrine of commercial ______, a party can claim that the contract is impractical to perform due to financial issues.
Under the doctrine of commercial ______, a party can claim that the contract is impractical to perform due to financial issues.
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In Restatement § 2-207(3), a definite expression of acceptance operates as acceptance even if it states terms additional to or ______ from those offered.
In Restatement § 2-207(3), a definite expression of acceptance operates as acceptance even if it states terms additional to or ______ from those offered.
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Buyer sent a purchase order with its terms; Metal Matic made a counter offer with ______ terms.
Buyer sent a purchase order with its terms; Metal Matic made a counter offer with ______ terms.
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The conduct by both parties that recognizes the existence of a ______ is sufficient to establish a contract.
The conduct by both parties that recognizes the existence of a ______ is sufficient to establish a contract.
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If communications do not establish ______, 2-207(3) comes into play to determine contract terms.
If communications do not establish ______, 2-207(3) comes into play to determine contract terms.
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P is seeking relief for breach of ______, as customers are suing P.
P is seeking relief for breach of ______, as customers are suing P.
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P contends that the contract was formed over the phone and was finite in its ______.
P contends that the contract was formed over the phone and was finite in its ______.
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The box top warranty was a material ______ that didn't become part of final agreements.
The box top warranty was a material ______ that didn't become part of final agreements.
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Restatement § 2-207(2) states that additional terms are to be construed as ______ for addition to the contract.
Restatement § 2-207(2) states that additional terms are to be construed as ______ for addition to the contract.
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The parties agreed on price, quantity, and type which are sufficient terms that express their ______.
The parties agreed on price, quantity, and type which are sufficient terms that express their ______.
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If D's later arriving terms are not part of the ______, they cannot be enforced.
If D's later arriving terms are not part of the ______, they cannot be enforced.
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P orders a computer by phone but claims he did not agree to ______.
P orders a computer by phone but claims he did not agree to ______.
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In Klocek v. Gateway, there was no express ______ that P was bound to the terms in the box.
In Klocek v. Gateway, there was no express ______ that P was bound to the terms in the box.
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In the case of Shaheen v. Knight, the patient claimed damages for the costs due to an unintended ______.
In the case of Shaheen v. Knight, the patient claimed damages for the costs due to an unintended ______.
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According to the rule in Shaheen v. Knight, there is no implied warranty of ______ in contracts with doctors.
According to the rule in Shaheen v. Knight, there is no implied warranty of ______ in contracts with doctors.
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In Hawkins v. McGee, the plaintiff sought damages based on the difference in value between a 100% good hand and the value of a ______ hand.
In Hawkins v. McGee, the plaintiff sought damages based on the difference in value between a 100% good hand and the value of a ______ hand.
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The rule in Hawkins v. McGee states that an enforceable contract is formed when a reasonable person would believe that a firm ______ is being made.
The rule in Hawkins v. McGee states that an enforceable contract is formed when a reasonable person would believe that a firm ______ is being made.
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In the case of Nurse v. Barns, the jury awarded damages of ______ pounds to the plaintiff due to breach of contract.
In the case of Nurse v. Barns, the jury awarded damages of ______ pounds to the plaintiff due to breach of contract.
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In Hadley v. Baxendale, the breach involved a delay in sending a replacement mill shaft crank leading to a loss of ______.
In Hadley v. Baxendale, the breach involved a delay in sending a replacement mill shaft crank leading to a loss of ______.
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The rule established in Hadley v. Baxendale states that a breaching party is only liable for damages that were reasonably ______ at the time of the contract.
The rule established in Hadley v. Baxendale states that a breaching party is only liable for damages that were reasonably ______ at the time of the contract.
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As per the rule in Nurse v. Barns, if the plaintiff suffered natural and foreseeable losses, they may recover ______ damages.
As per the rule in Nurse v. Barns, if the plaintiff suffered natural and foreseeable losses, they may recover ______ damages.
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If a party justifiably request assurances, they can suspend performances then Lane anticipatorily repudiates by suspending their own ______.
If a party justifiably request assurances, they can suspend performances then Lane anticipatorily repudiates by suspending their own ______.
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Two wrongs don't make a right: if the first wrong is material breach, then it does entitle you to ______ performance.
Two wrongs don't make a right: if the first wrong is material breach, then it does entitle you to ______ performance.
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Where seller fails to make delivery or repudiates, the buyer may cancel in addition to recovering so much of the ______ as has been paid.
Where seller fails to make delivery or repudiates, the buyer may cancel in addition to recovering so much of the ______ as has been paid.
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Must be a ______ of fact for misrepresentation to be actionable.
Must be a ______ of fact for misrepresentation to be actionable.
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Seller's statement is an inducing cause that would induce ______, has to substantially contribute to manifestation of assent.
Seller's statement is an inducing cause that would induce ______, has to substantially contribute to manifestation of assent.
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Seller was under no obligation to share information beyond what was ______.
Seller was under no obligation to share information beyond what was ______.
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If roles are reversed, buyer does not have to disclose information such as ______’s value being larger than believed by the seller.
If roles are reversed, buyer does not have to disclose information such as ______’s value being larger than believed by the seller.
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D spent thousands of dollars for additional dance classes due to false ______ related to her dancing ability and skills.
D spent thousands of dollars for additional dance classes due to false ______ related to her dancing ability and skills.
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Wyman promised to pay Mills for ______ incurred for his son’s care.
Wyman promised to pay Mills for ______ incurred for his son’s care.
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Wyman's promise lacked ______, as there was no legal duty to care for his son.
Wyman's promise lacked ______, as there was no legal duty to care for his son.
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Webb saved McGowin from grievous harm by choosing to ______ with a block.
Webb saved McGowin from grievous harm by choosing to ______ with a block.
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McGowin's promise was deemed a valid contract because he received ______ benefits.
McGowin's promise was deemed a valid contract because he received ______ benefits.
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The agreement between the captain and sailors was void for lack of ______.
The agreement between the captain and sailors was void for lack of ______.
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The sailors sued APA to recover the full amount payable under the new ______.
The sailors sued APA to recover the full amount payable under the new ______.
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The sailors demanded $100 for the season due to the provision of ______ fishing nets by APA.
The sailors demanded $100 for the season due to the provision of ______ fishing nets by APA.
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The captain's promise was invalidated by the ______ duty rule.
The captain's promise was invalidated by the ______ duty rule.
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Study Notes
Contracts
- Contracts involve a bargain, one party promises something and the other party does something or promises to do something in return.
- A contract is an agreement that is enforceable by law
- Contracts can be formed in various ways including written or oral.
- Contracts have elements of offer, acceptance, consideration, and capacity.
- Contracts can be breached by one party failing to perform their part of the agreement.
- Remedies for breach of contract include monetary damages, specific performance, and restitution.
- Breach of contract occurs when one party fails to fulfill their contractual obligation.
- Damages from contract breaches are calculated in several ways including expectation damages, reliance damages, and consequential damages.
- Various remedies are available for contract breaches including restitution.
- Parties who have acted on agreements in good faith to perform may seek specific performance in cases of breach.
Nature and History of Contract
- Shaheen v. Knight: A contract for sterilization did not include a warranty of cure.
- The court determined additional costs from an unintended pregnancy were not recoverable unless specifically included in the contract. Claimed damages for expenses incurred due to an unintended child were not awarded in this case because the contract did not cover medical malpractice.
Remedies for Breach
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Hawkins v. McGee: A contract for corrective surgery with a guarantee of a "100% good hand" was breached.
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The court awarded damages of the difference between the value of the promised outcome (a 100% good hand) and the value of the actual outcome. This included pain and suffering as it was a part of the expected contract terms.
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Nurse v. Barns: Plaintiff had a contract with D for use of iron mills. D breached contract, the jury awarded damages to P.
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If a party suffers losses due to breach but the losses were reasonably foreseeable when the contract was formed, the party may recover for reliance damages.
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Hadley v v Baxendale: P sought damages for lost profits due to a delayed delivery of a replacement mill shaft.
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The breaching party is only liable for damages that were reasonably foreseeable at the time the contract was formed.
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The court assessed that the special circumstances must have been communicated for the delivery to be foreseeable.
Chicago Coliseum Club v. Dempsey
- A breach of contract occurred in a boxing match claim,
- Only damages that naturally flowed from the breach or were reasonably foreseeable at the time of the contract formation are recoverable.
- Damages for lost profits, pre-signing expenses, and costs associated with preventing the defendant from fighting were recoverable and granted in this instance.
Mistletoe Express v. Locke
- P sought reliance damages.
- A party who is injured due to breach is entitled to recover reliance expenditures.
- However, the injured party should not be in a better position than if the contract had been fulfilled.
Rockingham County v. Luten Bridge Co.
- P breached contract with D to build a bridge by notifying D to stop construction.
- D can only recover damages for the work completed up to the time of receiving notice of the breach (not further work undertaken after the breach), and cannot recover damages that were created by continuing with work.
Parker v. 20th Century Fox
- P's contract with D to be in a movie was breached by D.
- D offered P employment in a different film, but D's offer was not reasonably similar to the first offer.
- P did not have to mitigate damages by accepting a different employment if it wasn't comparable to the original agreement.
Neri v. Retail Marine Corp
- P contracted to buy a boat; D breached contract by inability to sell to another party.
- P is entitled to recovery of profit lost from the sale of the boat, if the seller is a "lost volume seller", regardless of whether the second buyer has been found.
- If the P was a lost volume seller, P can recover profit they would've made on the second sale, to compensate for business being broken.
Wassenaar v. Towne Hotel
- A stipulated damages clause is enforceable if it is a valid estimate for the harm caused.
- Employee fired prior to contract end had a stipulated damages clause specifying salary remaining for the remainder of contract.
- Here, these damages were compensable in court regardless of what a damages calculation would be.
Lake River v. Carborundum
- The liquidation of damages must be reasonable and an estimate of likely damage at the time of the contract formation.
- The court found that damages were much greater than the likely damages which meant the liquidated amount set forth in the contract is higher than appropriate.
Loveless v. Diehl
- Courts can enforce contract for land sale by ordering specific performance
- Specific performance (ordering the defendant to perform according to the agreement terms) was enforced in this instance given the presence of damages that were caused.
Sedmak v. Charlies Chevrolet Inc
- P was not able to obtain the Corvette he had contracted for.
- Specific performance (a legal remedy commanding a party to perform as agreed) was appropriate due to the unique nature of the car.
Jackson v. Stanhope
- A claim for fraud was not able to be proven by the court in this case, despite D's action.
Cumbest v. Harris
- Court granted specific performance in this case due to the uniqueness of land.
- Specific performance was the appropriate remedy here as this was a unique and specific piece of land and not a commodity item.
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Description
This quiz explores the essential components of contracts, including formation, breach, and remedies. Understand the legal significance of offers, acceptance, and consideration, as well as how damages are calculated in case of a breach. Test your knowledge on the nature and history of contracts.
