Contract Formation
The 5 elements of a valid contract
What are:
Offer
Acceptance
Consideration
Capacity
Legality
Defenses to enforcing a valid contract include which of the following:
What is duress?
Name the two requirements for the UCC to govern a contract
One party is a merchant
Which of the following are elements of the tort of negligence:
Duty, Damages
Which of these is a legal theory you can use to sue for injury from a product:
Negligence
Breach of Warranty
The method by which you terminate your offer when you take it back before the other party accepts
What is "revocation"?
What does it mean when you claim that a fact is "material"?
That the fact is relevant to the decision (i.e. whether to accept the offer).
Contracts that aren’t governed by the UCC are governed by...
State common law
You are hired to be a pizza delivery driver after a thorough background check. Your boss tells you to drive very carefully, and you do, but you accidentally rear-end a car at a stoplight. Explain why your boss isn’t liable for your conduct.
No negligent hiring or supervision
No instructions to commit a tort
The coffee shop offers a new drink called “Exam Week Blitz” and states that the drink will keep you awake for a long time. Explain why this is not a warranty.
Because there is no explicit promise (i.e. "a long time" is not provable).
Your boss agrees to pay you an eco-bonus of $200 at the end of the month if, during that time, you refrain from driving a gas-powered car to and from work. Is this valid consideration? Explain your answer in writing (2 minutes)
Yes because you are giving up a legal right to do something (commute via gas-powered car).
When you rely on information, do you learn this information before or after acceptance of an offer?
Before
You know a lot about running shoes, but you keep this knowledge to yourself. Have you “held yourself out to have knowledge or skill” like a merchant does?
No
Write out how contributory negligence is different from comparative negligence.
Contributory - if Plaintiff's behavior played any role in injury, Plaintiff can't recover.
Comparative - if Plaintiff's behavior played a role, Plaintiff's recovery is reduced by that % (up to 50%)
A microwave is recalled because it tends to melt food after only 20 seconds. Is this a marketing, manufacturing, or design defect?
Design
A example of a “term” in a contract
What is price/quantity/date/item type, etc.?
Write out the difference between ending contract duties through breach vs through discharge by agreement. (2 min)
Breach - K ends because one party doesn't fulfill duties.
Discharge by agreement - both parties agree not to fully fulfill duties.
A merchant offers to sell a good to you. The merchant delivers this signed promise in writing to you today, and promises the good can be sold to you for that price through April 30th. Is this a merchant’s firm offer? Explain in writing the main reason for your answer (1 min).
No because the offer is being held open for more than 3 months; it is only valid through March 11th.
How is contributory negligence different from assumption of risk?
Contrib - used when Plaintiff's behavior played a role in their injury
Assumption of risk - used when P's behavior did not play a role but P engaged in a dangerous activity with known risks
Write out the difference between the defense of substantial alteration and the defense of unforeseeable use.
Alteration - product was changed in a significant way
Use - product was not changed but was used in an unforeseeable way
Not part of the definition of “legal capacity”:
What is "being relatively smart"?
To claim the defense of “undue influence”, a party must first prove that what exists?
A pre-existing relationship between the parties
Explain how acceptance and the mirror-image rule differs in UCC vs non-UCC contracts
UCC - can accept with different terms (unless one of the 3 exceptions is present)
Non-UCC - acceptance must be mirror-image; any change in terms turns the "acceptance" into a counteroffer.
Why can’t a party sue for nominal and for compensatory damages?
Because they mean opposite things. Nominal is given when there aren't monetary damages. Compensatory is given when they are quantifiable damages.
You purchase a piano. The implied warranty of merchantability means:
The piano will be of average quality and work as expected for ordinary use