"FUN"DAMENTALS
The three things you need to make a contract.
What is Offer, Acceptance, and Consideration
Sales of real property, contracts that cannot be completed within 1 year (something that will take longer than 1 year), and sales of goods more than $500 are all subject to which statute?
statute of frauds
A _____ is offered gratuitously with no expectation of compensation
Parol evidence is defined as...
any agreements, negotiations, or conversations—written or oral—that occurred prior to a final written contract but are not included within it
These damages are the benefit of the bargain, they put the party in the position had the contract been performed
Expectation Damages
Advertisements, price quotes, rewards, jokes (unless there is a reasonable belief), are all examples of what?
Even though manifestation is understood as an offer, it cannot be accepted as such to form a contract unless the terms are reasonably ______.
Certain
Which element of promissory estoppel is missing?
A promise
Reasonably expected to be relied on
Was reasonably relied on
"__________"
Justice requires enforcement
If the existence of a particular person is necessary for the performance of a duty, his death or such incapacity as makes performance impracticable. This is WHICH defense to breach.
Impossibility
These damages are designed to put the injured party in the same economic position they occupied before the contract was made
Reliance Damages
How may an offerees power of acceptance be terminated?
1. Rejection or counter-offer by the offeree
2. Lapse of time
3. Revocation by offeror
4. Death or incapacity of the offeror/offere
This term is defined as "how parties acted during performance of a certain contract"
Course of Performance
What term, meant to prevent unjust enrichment, is defined by the following:
- Benefit was conferred on defendant by plaintiff
– Benefit was ”appreciated” or known by the defendant
– It would be inequitable for the benefit to be retained without payment of its value
quasi-contract
Name two things that make a breach material.
- Injured party’s deprivation of a benefit they reasonably expected
- Ability to be compensated for the deprived benefit
- Extent to which the party failing to perform or to offer to perform will suffer forfeiture
- Likelihood that breaching party will cure the failure, under all the circumstances
- Failing party’s compliance with standards of good faith and fair dealing
Which is awarded for unjust enrichment ONLY to the extent that the party has conferred a benefit on another party
Restitution
What rule tells us that revocation is effective when received and acceptance is effective when dispatched.
The mailbox rule
A contract is voidable by the party who lacks capacity. However, that only applied to an intoxicated individual if...
the other party could see/had reason to know that they were intoxicated.
Uncle told Nephew that he would give Nephew a valuable gold watch (worth $12,000) if Nephew would drive 400 miles to Uncle’s house to pick it up. Uncle didn’t like Nephew all that much, but Nephew was his only living relative and Uncle felt that his valuable watch should stay within the family. Nephew took two days off from work and drove the 400 miles to Uncle’s house. When he got there, Uncle told Nephew that he had changed his mind and did not wish to part with the watch at this time.
Does Nephew have a viable claim under any theory against Uncle?
(A) No, because Uncle’s promise lacked consideration.
(B) Yes, if a court finds that justice requires enforcement.
(C) Yes, because there was a bargained-for exchange.
(D) No, because the promise was made to a family member.
B
WHAT IS a total breach discharges the other party from performance
Repudiation
Name a limitation of damages
Economic Waste, Duty to Mitigate/Doctrine of Avoidable, Foreseeability
Anne agrees to purchase all shares of stock from her partner Wendy (taking full ownership of the company) for $300,000. Wendy writes back that she "accepts" provided that she retains her title as president for one additional year. After Wendy's reply, Anne withdraws her offer, and Wendy sues to enforce the sale. Did Wendy and Anne enter into a contract?
A. Yes, Wendy and Anne entered into an enforceable contract because there was a valid offer.
B. No, because the offer was rejected by Wendy when she provided additional terms.
C. No, because there was no consideration
D. Yes, Anne's offer was irrevocable
B
During negotiations, merchant Seller told Buyer, the owner of a grocery store chain, “Our grape jelly is the best on the market.” Buyer tasted the jelly, thought it was pretty good, and contracted with Seller to purchase twenty cases.
After signing the contract, Buyer sampled another company’s grape jelly, and believed it to be much better than Seller’s. Buyer felt that Seller had deceived him and refuses to go forward with the contract to purchase the twenty cases of Seller’s jelly, saying the contract is voidable on misrepresentation grounds.
Which of the following statements is correct?
(A) Buyer is in breach for refusing to purchase the jelly.
(B) Buyer is not in breach, and may avoid the contract, based on misrepresentation.
(C) Buyer is in breach because he waived any misrepresentation defense by tasting the jelly.
(D) Buyer would be able to avoid the contract under the standards for merchant sellers under the UCC.
A
A grandmother wanted to motivate her 16-year-old grandson, who had recently gotten out of juvenile detention, to stay out of trouble. They verbally made a deal that if the grandson did not commit any more crimes, the grandmother would give him $5,000 for his 18th birthday. The promise of $5,000 induced the grandson to refrain from any further criminal activity.
Is the grandmother’s promise enforceable either as a contract or under the doctrine of promissory estoppel?
(A) The grandmother's promise is not enforceable either as a contract or under the
doctrine of promissory estoppel.
(B) The grandmother's promise is enforceable only as a contract.
(C) The grandmother's promise is enforceable only under the doctrine of promissory
estoppel.
(D) The grandmother's promise may be enforced either as a contract or under the
doctrine of promissory estoppel
A
A landowner and a buyer signed a written contract in which the landowner would convey a large plot of land to the buyer without anything in return. Previously, the buyer had agreed to pay the landowner the market value of the land. On the date the parties agreed to close the deal, the landowner refused to convey the land. The buyer sued the landowner for specific performance of the written contract.
Assuming the court finds the written contract to be completely integrated, is the court likely to allow the landowner to offer evidence that the buyer had previously agreed to pay market value for the land?
(A) No, because the previous agreement contradicts the integrated terms of the written contract.
(B) Yes, because the previous agreement is outside the scope of the written contract.
(C) Yes, because the previous agreement helps to interpret the terms of the written contract.
(D) Yes, because the written contract is unlikely to be considered a binding agreement.
D
Developer hires Contractor to construct a mall for $10 million. In the middle of construction, Developer unjustifiably breaches. Contractor was expensive for the area, and most contractors would have bid the job at $8 million. At the time of the breach, other reasonable builders in the area would have spent $2 million in labor and materials. Contractor, however, spent $2.5 million, using his own internal costs for labor. Contractor competently estimates that he would have spent another $6 million in labor and materials to finish the construction, meaning he would have made a profit of $1.5 million on the project, i.e., $10 million contract price, less the $2.5 million he has already spent, less the $6 million he would have had to spend to complete performance. At the beginning of the contract, Developer’s land was worth $5 million. The value of the land with a partially completed structure on it is $6.8 million.
The value of Contractor’s expectation interest is:
(A) ($10 million) – ($8.5 million).
(B) ($8 million) + ($2.5 million).
(C) ($1.5 million) + ($2.5 million).
(D) ($10 million) – ($6 million) + ($2.5 million).
C (Expectation puts C in position of if the contract had been performed. $1.5 expected profit + $2.5 what he already spent).