It's All In Here
This is the objective, outward expression of a party's intent to be bound in an agreement.
What is objective intent?
This is a court order requiring a breaching party to perform his contractual duties.
What is Specific Performance?
Your mom contracted to sell her ring to a coworker for $300. Both parties believed that the ring had a cubic zirconia stone and was worth $300. The parties agreed that your mom would bear the risk of any mistake regarding the worth of the ring. In reality, the stone in the ring was a diamond, and the ring was worth $2,000.
Upon learning of this mistake, your mom refused to sell the ring to the coworker for $300.
Your mom was sucessfully sued for breach of contract because she _________.
What is beared the risk of the mistake?
If the language within the __________ of the agreement is reasonably susceptible to only one meaning, that meaning governs the parties’ obligations.
What is four corners?
Name the contracts that typically fall under the Statute of Frauds.
What is marriage, over one year, land, executorship of will, goods over $500, and suretyships?
This is something given, whether money, a return promise, or forbearance, by a promisee to a promisor.
What is Consideration?
The UCC limits specific performance or injunction to this...
What is unique goods or other proper circumstances?
Your mom agreed to purchase a store from the store’s owner for $100,000. After signing the contract, your mom spent $50,000 on inventory to supply the new store. However, the store owner then refused to perform the contract. As a result, your mom resold the inventory at the best market price available, which was $30,000. Your mom brought a breach of contract claim for reliance damages against the store owner. The court found that the owner had breached the contract and moved on to determine the amount of damages.
If the owner is able to prove that your mom would have lost $5,000 selling the inventory at the store (had the contract been performed), how much is your mom likely to recover in reliance damages?
What is $15,000? (the amount spent in preparation to perform, minus the amount recovered by reselling the inventory, minus the expected loss had the contract been performed)
This kind of mistake is a mistake by one party to the contract regarding the terms or the subject matter of the contract.
What is a unilateral mistake?
A contract containing a defect that makes it possible for one of the parties to declare the contract unenforceable, but without such election, remains an enforceable contract, is deemed to be what?
What is a voidable contract?
This is a promise offered with no expectation of any compensation.
What is a Gratuitous Promise?
Fill in the blank: Substantial performance is a defense to breach of contract asserted by a party who has substantially performed their contract obligations _______ breaching the contract.
What is "prior to"?
A college student wanted to join her friends on a spring break trip but could not afford it. She told your mom about the trip, and she said that she would pay for it as a graduation gift. In reliance on this promise, the student went on the trip, charging all expenses on her credit card. Upon her graduation, however, your mom refused to give the student any money.
If the student wishes to bring an action against your mom, which theory of recovery, if any, would be most advisable for the student to pursue?
What is promissory estoppel?
In order for the doctrine of mistake to apply, the mistake must have this kind of effect on the bargain.
What is material?
The ____________ test for incapacity requires that the impairment causes inability to understand nature and consequences of transaction.
What is the cognitive standard / test?
This is a promise made by a party in which the words of promise which by their terms make performance entirely optional.
What is an Illusory Promise?
This is the amount of money necessary to make the non-breaching party as well-off as she would have been had the contract been performed.
What is Expectation Damages?
A plastic surgeon and your mom entered into a contract. In this contract, the surgeon agreed to perform five independent surgeries on your mom over the next few months for a cost of $10,000 per surgery ($50,000 total). Your mom paid $40,000 in advance. However, after performing two surgeries, the surgeon informed your mom that the surgeon was moving out of state and could not perform the remaining three surgeries.
If your mom sues the surgeon for restitution, how much is the patient likely to recover?
Fill in the blank: Courts will consider the risk of mistake to be allocated to the ____________________ whenever that party “is aware of limited knowledge but proceeds anyway.”
What is the adversely affected party?
This is proved by showing (1) one party has threatened to breach the contract by withholding goods and (2) the goods could not have been gotten elsewhere.
What is economic duress?
This 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 an offer?
This is the amount of money necessary to place the injured party in the position he would have been in had the contract never been made.
What is reliance damages?
Your mom signed a contract to perform in a movie. Your mom had previously experienced issues with drug addiction, so the movie studio included a condition in your mom's contract that she pass a daily drug test while filming the movie. Your mom stayed clean for several weeks while filming but then began to fail her drug tests. The movie studio, aware of this fact, continued to film the movie because your mom was still showing up to work on time and satisfactorily performing all the rest of her duties under the contract. The head of the movie studio told your mom that the studio would honor the contract despite your mom's positive drug tests, as long as her work continued to be satisfactory. After the movie concluded filming, the studio refused to pay your mom for her work on the movie. The studio further explained that your mom's passing the daily drug tests was a condition of the studio’s performance under the contract.
What excuse or excuses for the nonoccurrence of the condition may your mom assert?
What are estoppel and waiver?
Fill in the blank: A party "bears the risk" of the mistake when:
What is consciously ignorant or similar terms?
Fill in the blank: A contract is ________ unconscionable if (1) a significant inequality in bargaining power prevents one of the parties from having a meaningful choice or real alternative in setting the terms of the agreement, or (2) the contract involves some aspect of unfair surprise.
What is procedurally unconscionable?