Fill in the Blank Busters
The type of rule you can contract around is called a _________ rule
What is Default Rule
A homeowner claimed that there was a valid offer to paint her house.
Which of the following statements would a court most likely find constituted a valid offer?
A" I offer to pay you to paint my house"
B "I will pay you $1,000 to paint my house"
C "I might pay you $1,000 to paint my house"
D "I will not pay you more than $1,000 to paint my house"
What is B "I will pay you $1,000 to paint my house"
The case that solidified the difference in our understanding of ambiguity and vagueness.
What is Raffles v. Wichelhaus
An offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.
What is § Restatement 24
The three types of damage interests are... +2 points if you can correctly explain what they are intended to do...
What are Expectation Damages, Reliance Damages, and Restitution Damages
Bonus:
Expectation puts the injured party in the same position they would've been if the contract had been performed
Reliance puts the plaintiff back to the position they'd be in if they hadn't relied on the promises of the breaching party
Restitution restores any benefit conferred onto the other party (prevents Unjust Enrichment)
M___ misrepresentation is not enough to bring suit, there must be _____
What is mere misrepresentation is not enough to bring suit, there must be fraud.
A man offered to sell his motorcycle to his neighbor for $10,000. The neighbor was interested but wanted additional time to think about it. The man promised his neighbor that he would leave the offer open for a year.
Is the man legally obligated to leave the offer open for a year?
A No, because there is no consideration
B No, because firm offers are only irrevocable for up to three months
C Yes, because it is a valid option contract
D Yes, because it is a valid firm offer
What is A No, because there is no consideration
The case where nominal damages were awarded and the court found the defendants had substantially performed.
What is Jacob & Youngs v. Kent
A mistake is a belief that is not in accord with the facts.
What is § 151 Mistake Defined
The Jural Opposite of Immunity is...
What is Liability
For Duress, there must be a _____, which is _______, and it must ______ the assent of the victim and it must be __________ grave.
A woman hired a contractor to repair water damage in her bathroom. The contractor agreed to a price of $5,000 for labor. The woman contracted to purchase tile for the project directly from a tile warehouse for $1,000. After starting the job, the contractor discovered that the damage was much worse than either party initially had believed. The contractor told the woman that he would need to spend several extra days working on it. He quoted her a new price of $8,000. The tile warehouse then phoned and stated that, due to increasing shipping costs, it was forced to increase the price of the tile to $1,500. The increased shipping costs had long been predicted in the industry and were therefore foreseeable to the warehouse. However, the tile warehouse’s representations were truthful; in the month since contracting to supply the tile for the woman’s job, the warehouse’s shipping costs had doubled.
Which price increase, if any, will be enforceable in court?
A Both the Contractor's and the Tile Warehouse's price increases
B Only the Contractor's price increase
C Only the Tile Warehouse's increase
Neither the Contractor's nor the Tile Warehouse's price increase
What is A? Both the Contractor's and the Tile Warehouse's price increases
The case where we learned unforeseeability can act as a limitation to liability.
What is Hadley v. Baxendale
(1) A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires. (2) A charitable subscription or a marriage settlement is binding under Subsection (1) without proof that the promise induced action or forbearance.
What is § 90 Promise Reasonably Inducing Action or Forbearance
A party who provides goods or services to a recipient can seek to be paid the reasonable value of those goods and services even if they haven’t fully completed the contract. (can contract around!)
What is Quantum Meruit
Without an implied promise, the transaction cannot have such business “efficacy as both parties must have ________ that at all events it should have”
What is intended
A man told his neighbor at a backyard barbecue that he had always admired the neighbor’s collection of comic-book action figures. The man also collected the same action figures. Like his neighbor, the man regularly bought, sold, and traded the action figures while attending conventions with other comic-book enthusiasts. The neighbor, whose basement had flooded recently, was looking to raise some funds for the next convention. The neighbor told the man that she would be happy to sell him a prized figure in her collection for $200. The man said he would need some time to discuss the potential purchase with his wife. The neighbor said that she understood and that she would keep the offer open for him for one week. The man talked the purchase over with his wife, who agreed to it. The man returned to the neighbor three days after their conversation at the barbecue and tendered the $200. The neighbor told the man that she had sold the action figure the day before.
If the man sues the neighbor for breach of contract, is he likely to be successful?
A Yes, because the neighbor sold the action figure two days after promising to keep the offer open for one week
B Yes, because the man is a merchant
C No, because the neighbor is not a merchant
D No, because the man did not provide consideration for the promise to keep the option open
What is D No, because the man did not provide consideration for the promise to keep the option open
Consideration consists only of bargained-for promises - you can’t write in a condition for the other party if they didn’t actually bargain for it themselves
What is Whitten v. Greeley-Shaw
(1) Undue influence is unfair persuasion of a party who is under the domination of the person exercising the persuasion or who by virtue of the relation between them is justified in assuming that that person will not act in a manner inconsistent with his welfare. (2) If a party’s manifestation of assent is induced by undue influence by the other party, the contract is voidable by the victim. (3) If a party’s manifestation of assent is induced by one who is not a party to the transaction, the contract is voidable by the victim unless the other party to the transaction in good faith and without reason to know of the undue influence either gives value or relies materially on the transaction.
What is § 177 When Undue Influence Makes a Contract Voidable
The order of the UCC Interpretation Hierarchy is...
What is (in order): Express Terms, Course of Performance, Course of Dealings, and Usage of Trade
I have a(n) ________ not to be called to jury duty in Rhode Island (since Rhode Island is not my domicile).
What is immunity
A man and a woman conducted negotiations regarding the sale of a painting. The man and the woman sent numerous letters back and forth concerning the terms of the sale. In the woman’s last letter, she suggested that she might be willing to sell the painting for $10,000 but did not make a definite offer. The man responded with a letter stating, “I am willing to buy the painting for $10,000, as long as the painting is delivered to my house. If I don’t hear anything further from you soon, I will consider the deal done.” The woman never responded to the man’s letter.
Is there a contract for the sale of the painting?
A Yes, because the offeror intended for the offeree's silence to constitute acceptance
B Yes, because there are prior dealings that make it reasonable for the offeror to expect to be notified of a rejection and, in the absence of a rejection, to conclude acceptance
C No, because the woman's silence will not be construed as an acceptance of the man's offer
D No, because the man's letter proposed an additional term to the agreement
What is C No, because the woman's silence will not be construed as an acceptance of the man's offer
Extrinsic evidence can be admitted to prove the parties' intention
What is Pacific Gas and Electric Co.
A party bears the risk of a mistake when (a) the risk is allocated to him by agreement of the parties, or (b) he is aware, at the time the contract is made, that he has only limited knowledge with respect to the facts to which the mistake relates but treats his limited knowledge as sufficient, or (c) the risk is allocated to him by the court on the ground that it is reasonable in the circumstances to do so.
What is § 154 When a Party Bears the Risk of a Mistake
What are the requirements for avoidance under Misrepresentation?
The requirements for avoidance can be grouped under 4 headings: (1) must be an assertion that is not in accord with the facts (2) the assertion must be either fraudulent or material (3) assertion must be relied on by the recipient in manifesting assent (4) the reliance of the recipient must be justified.