Podcast
Questions and Answers
In contract law, what is the primary distinction between an offeror and an offeree?
In contract law, what is the primary distinction between an offeror and an offeree?
- The offeror evaluates the terms of the contract, while the offeree drafts the initial proposal.
- The offeror receives the offer, while the offeree is responsible for fulfilling its terms.
- The offeror seeks legal counsel, while the offeree represents themselves.
- The offeror makes the offer, while the offeree receives the offer. (correct)
How does a bilateral contract differ from a unilateral contract?
How does a bilateral contract differ from a unilateral contract?
- A bilateral contract involves performance for a promise, while a unilateral contract involves a promise for a promise.
- A bilateral contract is implied, while a unilateral contract is express.
- A bilateral contract involves a promise for a promise, while a unilateral contract involves a promise in exchange for performance. (correct)
- A bilateral contract is written, while a unilateral contract is verbal.
What differentiates an implied-in-fact contract from a quasi-contract (implied-in-law)?
What differentiates an implied-in-fact contract from a quasi-contract (implied-in-law)?
- An implied-in-fact contract is based on the parties' conduct, while a quasi-contract is court-imposed to prevent unjust enrichment. (correct)
- An implied-in-fact contract is imposed by the court, while a quasi-contract is based on the parties' conduct.
- An implied-in-fact contract requires a written agreement, while a quasi-contract does not.
- An implied-in-fact contract involves tangible goods, while a quasi-contract involves services.
Under the Uniform Commercial Code (U.C.C.), which of the following statements accurately describes how contract modifications are handled compared to common law?
Under the Uniform Commercial Code (U.C.C.), which of the following statements accurately describes how contract modifications are handled compared to common law?
A retailer orders 600 widgets from a manufacturer for $6000, but does not sign a written contract. The manufacturer delivers 300 widgets and the retailer accepts them. If the retailer refuses to accept the rest of the order, which of the following is true under the U.C.C. Statute of Frauds?
A retailer orders 600 widgets from a manufacturer for $6000, but does not sign a written contract. The manufacturer delivers 300 widgets and the retailer accepts them. If the retailer refuses to accept the rest of the order, which of the following is true under the U.C.C. Statute of Frauds?
How do Restatements of Contracts influence contract law?
How do Restatements of Contracts influence contract law?
In Seawright v. American General Financial, what led the court to rule that Seawright agreed to the arbitration policy?
In Seawright v. American General Financial, what led the court to rule that Seawright agreed to the arbitration policy?
Under what circumstances would the Uniform Commercial Code (U.C.C.) likely apply?
Under what circumstances would the Uniform Commercial Code (U.C.C.) likely apply?
Why was the attorney in Slick v. Reinecker unable to recover fees?
Why was the attorney in Slick v. Reinecker unable to recover fees?
What is the primary function of the Uniform Electronic Transactions Act (UETA)?
What is the primary function of the Uniform Electronic Transactions Act (UETA)?
In the context of contract law, what constitutes 'consideration'?
In the context of contract law, what constitutes 'consideration'?
In Domingo v. Mitchell, why was the oral agreement regarding lottery winnings deemed unenforceable?
In Domingo v. Mitchell, why was the oral agreement regarding lottery winnings deemed unenforceable?
How did the Kimble case impact patent royalty agreements?
How did the Kimble case impact patent royalty agreements?
Which scenario exemplifies an implied-in-fact contract?
Which scenario exemplifies an implied-in-fact contract?
A company sends a written offer to purchase goods, promising to keep the offer open for 30 days. Under what condition is this offer considered irrevocable?
A company sends a written offer to purchase goods, promising to keep the offer open for 30 days. Under what condition is this offer considered irrevocable?
Which of the following constitutes a breach of contract?
Which of the following constitutes a breach of contract?
What role does 'consideration' play in the formation of a contract?
What role does 'consideration' play in the formation of a contract?
Under the Mailbox Rule, when is an acceptance of an offer generally considered effective?
Under the Mailbox Rule, when is an acceptance of an offer generally considered effective?
A computer store contracts to sell all of its customized PC output to a specific real estate business. This is an example of what kind of contract?
A computer store contracts to sell all of its customized PC output to a specific real estate business. This is an example of what kind of contract?
What is the key difference between a void and a voidable contract?
What is the key difference between a void and a voidable contract?
Which of the following scenarios best illustrates the application of Stare Decisis?
Which of the following scenarios best illustrates the application of Stare Decisis?
Flashcards
Offeror vs. Offeree
Offeror vs. Offeree
The offeror makes the offer; the offeree receives it.
Bilateral vs. Unilateral Contract
Bilateral vs. Unilateral Contract
Bilateral: Promise for a promise. Unilateral: Promise for performance.
Implied-in-fact vs. Quasi Contract
Implied-in-fact vs. Quasi Contract
Implied-in-fact: Based on conduct. Quasi: Court-imposed to prevent unjust enrichment.
Formal vs. Informal Contracts
Formal vs. Informal Contracts
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U.C.C. Acceptance Rule
U.C.C. Acceptance Rule
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Contract (K)
Contract (K)
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Mutual Assent
Mutual Assent
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Consideration
Consideration
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Bilateral Contract
Bilateral Contract
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Unilateral Contract
Unilateral Contract
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Express Contract
Express Contract
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Statute of Frauds
Statute of Frauds
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Mailbox Rule
Mailbox Rule
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Restatements of Contracts
Restatements of Contracts
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Uniform Commercial Code (U.C.C.)
Uniform Commercial Code (U.C.C.)
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Implied Consent
Implied Consent
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When U.C.C. Applies
When U.C.C. Applies
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Uniform Electronic Transactions Act (UETA)
Uniform Electronic Transactions Act (UETA)
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E-Sign Act
E-Sign Act
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Components of a Contract
Components of a Contract
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Study Notes
Key Contract Definitions
- Contract (K) is a legally enforceable agreement between parties
- Promisor is the party making a promise
- Promisee is the party to whom a promise is made
- Offer represents a clear intention to enter a contract with specific terms, communicated to an identifiable offeree
- Offeror is the party making an offer
- Offeree is the party receiving an offer
- Mutual Assent signifies a meeting of the minds and agreement
- Consideration is the value exchanged for a promise
- Capacity refers to the legal ability to enter a contract
- Legality means the contract must comply with the law, such as the Statute of Frauds
- Bilateral Contract involves a mutual exchange of promises
- Unilateral Contract indicates acceptance through performance
- Express Contract includes explicitly stated terms
- Implied in Fact Contract is inferred from circumstances or conduct
- Implied in Law Contract (Quasi-Contract) is imposed by law to prevent unjust enrichment
- Executed Contract is fully performed
- Executory Contract is yet to be performed
- Void Contract has no legal effect
- Voidable Contract can be canceled by one party
Types of Contracts
- Formal Contracts must be in a certain form to be valid, such as sealed contracts
- Informal Contracts do not have formal requirements and can be oral
- Output Contract means a seller agrees to sell all of its product to one buyer
- Requirements Contract requires a buyer to purchase all required supply from a seller
- Option Contract is an offer held open for a specified period with consideration
- Irrevocable Offer is an offer in writing with assurance that it remains open
Contract Law Principles
- Statute of Frauds determines which contracts must be in writing
- Mailbox Rule indicates acceptance is effective upon dispatch, not receipt
- Counteroffer creates a new offer rejecting the previous one
- Revocation is the withdrawal of an offer before acceptance
- Rejection occurs when the offeree declines the offer
- Breach of Contract is the failure to perform contract obligations
- Statute of Limitations sets a time limit for legal actions on contracts
Legal Doctrines & Precedents
- Stare Decisis means courts follow past rulings
- Stare Decisis can be overturned if:
- The past ruling was wrong
- Society has changed
- The ruling is unworkable
- It conflicts with the Constitution
- Stare Decisis can be overturned if:
- Restatements of Contracts are persuasive legal principles developed by the American Law Institute
- Uniform Commercial Code (U.C.C.) governs sales and commercial transactions
Key Cases
- Kimble Case
- Issue was patent royalties extending beyond expiration
- The Brulotte rule prevents post-expiration royalties
- Possible fixes include limiting royalties to the patent term, deferring payments only for sales within the term, and include non-patent rights
- Seawright v. American General Financial
- Issue was whether continued employment signified agreement to an arbitration policy
- Ruling was yes, because Seawright was informed and continued working, showing implied consent
- Slick v. Reinecker
- Issue was an attorney sued for fees despite no written agreement
- Ruling was there was no express or implied contract, so a contingent fee wasn't enforceable
- Domingo v. Mitchell
- Issue was an oral agreement over lottery winnings
- Ruling was there was no enforceable contract as Domingo didn't provide consideration
Contract Law in Business Scenarios
- Sale of Goods (U.C.C.)
- Buying a TV from a store applies UCC
- Buying a TV from a friend may not apply due to non-merchant status
- Ordering 50 dozen cookies for a business applies UCC
- Service Contracts (Common Law)
- Hiring a company for remodeling applies common law
- Hiring an employee for an hourly wage applies common law
Legal Research Resources
- State Bar Journals provide articles on state-specific laws
- Legal Encyclopedias are overviews of law topics
- Formbooks assist in drafting contracts
- Online Legal Research can be done by pay services such as Westlaw, LexisNexis or free services such as FindLaw, Justia
E-Commerce & Technology Laws
- Uniform Electronic Transactions Act (UETA) recognizes electronic documents as legally valid
- Electronic Signatures in Global and National Commerce Act (E-Sign) allows e-signatures in contracts
- Uniform Computer Information Transactions Act (UCITA) covers e-transactions but is controversial
Final Review Questions
- Components of a contract include offer, acceptance, consideration, mutual assent, capacity, legality, and form (if required)
- The offeror makes the offer, and the offeree receives it
- Bilateral contract is a promise for a promise, while unilateral contract is a promise in exchange for performance
- Implied-in-fact contract is based on conduct, while quasi (implied-in-law) contract is court-imposed to prevent unjust enrichment
- Formal contracts must meet specific legal requirements, while informal contracts have no special format required
Three Main Departures of the U.C.C. from Common Law Contracts
- Acceptance Can Have Different Terms
- Common Law: Acceptance must match the offer exactly (mirror image rule)
- U.C.C.: A contract can still be valid even if the acceptance includes minor changes, as long as both parties intend to agree
- Contract Modifications Don't Need New Consideration
- Common Law: Changes to a contract must include new consideration (something of value exchanged)
- U.C.C.: Modifications are valid without new consideration, as long as they are made in good faith
- Simplified Statute of Frauds for Sales of Goods
- Common Law: Many contracts must be in writing (e.g., real estate, contracts over a year)
- U.C.C.: Contracts for the sale of goods over $500 must be in writing, but there are exceptions (merchant confirmations, part performance, custom goods)
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Description
Explore fundamental contract terms: offer, acceptance, consideration, and legality. Learn about different types of contracts, including bilateral, unilateral, express, and implied contracts. Understand essential elements for a legally binding agreement.
