The Six Elements
What are the six essential elements of a contract?
Offer, acceptance, awareness, capacity, consideration, legality
Name one reason handshake deals have declined.
Business is now global/digital; strangers can't rely on reputation alone
What's the difference between executory and executed?
Executory = not fully performed yet; executed = fully completed by both sides
What's the difference between an assignee and a delegate?
Assignee receives a transferred benefit/right; delegate receives a transferred duty/obligation
What's the difference between click-wrap and browse-wrap agreements?
Click-wrap requires an active click to agree; browse-wrap just assumes agreement from using the site
What's the difference between an offer and an invitation to negotiate?
An offer is definite/specific enough to be accepted as-is; an invitation to negotiate — like a menu or ad — just invites offers
What's the "protective power" of a contract?
It creates written proof of the deal and defines consequences if broken
What's a quasi-contract?
Not a true contract — a court-enforced remedy to prevent unjust enrichment
Can a minor legally enter into a contract?
Yes — but they generally have the right to disaffirm it
What does PKI (Public Key Infrastructure) do?
Uses digital certificates/encryption keys to verify identity and secure e-signatures
A contract to sell stolen property has clear offer, acceptance, and payment. Why is it still void?
Fails legality
What's the role of courts when it comes to contracts?
Interpret disputed terms, enforce valid contracts, void invalid ones
Give an example of a unilateral contract.
A reward offer — "$100 if you find my dog" — binding only once someone performs the act
What's the "necessity exception" for minors?
Minors usually can't disaffirm contracts for necessities like food, shelter, or emergency medical care
What's a digital fingerprint, and why does it matter for e-contracts?
A unique hash of a document's content — proves whether it was altered after signing
What's the difference between mutual mistake and unilateral mistake, and which one usually voids a contract?
Mutual = both sides wrong about the same key fact, voids the contract; unilateral = only one side is wrong, usually still binding
Why is doing business without a valid contract risky even if both sides trust each other?
No proof if a dispute arises; weaker legal position; costly to resolve
Is a contract that's both "express" and "implied" possible? Why or why not
No — express means stated in words/writing; implied means formed through conduct. A contract is one or the other, not both
What happens differently for an emancipated minor?
They may be fully bound by contracts, without the right to disaffirm, since they've been granted adult legal status
Why do companies use tracking schemes on their websites in relation to contracts?
To create a timestamped record of when/how a user agreed to terms, useful if the agreement is disputed later
Why can't a promise to do something you're already legally required to do count as consideration?
No new value is being exchanged — you're not giving up anything you didn't already owe
Explain how contracts help a free-market economy function.
They create predictability/confidence, letting strangers trade, invest, and do business at scale
A repair company fixes the wrong house's AC by mistake. The homeowner lets them finish without saying anything. What kind of contract situation is this, and why?
Quasi-contract — no true agreement was formed, but courts may still require payment to prevent unjust enrichment
A minor buys a laptop on a payment plan, uses it for two months, then tries to cancel and get a full refund. What's the likely outcome and why?
She can likely disaffirm since it's not a necessity — but courts may require her to return the item or account for its used value depending on the state
Between click-wrap and browse-wrap, which one would hold up better in court if a company needed to prove a user agreed to their terms, and why?
Click-wrap — it shows clear, active agreement, whereas browse-wrap is easier to argue the user never actually saw or agreed to