Contract Law for Paralegals Final Exam-Solved 100% Correct

Six Elements of a Valid Contract - ANSWER-* Offer * Acceptance * Consideration * Legal * Capacity * Intent All contracts are either - ANSWER-Bilateral or unilateral Bilateral contract - ANSWER-a promise for a promise Unilateral contract is: - ANSWER-a promise for an act Express contract is: - ANSWER-K where mutual assent of parties is verbal or written Implied contract - ANSWER-K established based on conduct of parties Quasi contract - ANSWER-No K, but courts act as matter of equity to prevent injustice formal contract - ANSWER-K written/signed under seal (e.g. checks, and CODs) Informal contracts - ANSWER-Non-formal K satisfying six elements of valid K and whose form is not regulated by statute Executory contract - ANSWER-K where at least one party must provide performance executed contract - ANSWER-K satisfied Valid contract - ANSWER-Enforceable K meeting all elements voidable contract - ANSWER-K where one party may avoid legal obligation because one element unsatisfied (e.g. entering into a contract with a minor or an adult who was later found to have been coerced under duress into entering the contract) void contract - ANSWER-K that failed to meet all six elements from outset A voidable K may become valid and enforceable if the party under the disability (minor, person induced by fraud, duress, etc.) later affirms their obligation once the disability is removed - ANSWER-true unenforceable K - ANSWER-a valid K for which the law offers no recourse or remedy if its obligations are unfulfilled. (e.g. K to build store in area city rezones as "residential only". Unconstitutional taking sans just compensation?) Mutual exchange of promises - ANSWER-bilateral K Five classifications of any K: - ANSWER-* Bilateral/Unilateral * Express/Implied * Formal/Informal * Executory/Executed Valid/Invalid mutual assent - ANSWER-agreeing to same terms at same time First element of a valid contract, mutual assent to the same bargain at the same time - ANSWER-Offer Party who first proposes K relationship under common law is: - ANSWER-offeror Contracts between merchants governed by - ANSWER-Uniform Commercial Code Definiteness is a requirement of contract law and involves: - ANSWER-• Parties • Subject Matter • Deadline Covenant - ANSWER-Absolute promise of performance Common law elements for a valid offer - ANSWER-* K intent communicated with definite terms Elements of a valid offer - ANSWER-*price *subject matter *parties *timing of performance ______________ is the bargain of the contract, it is the benefit conferred or the detriment incurred - ANSWER-Consideration Under the ____________ common law rules allow contracts for the sale of goods between commercial traders absent a set price, provided the parties have a history of past dealings and some objective means of setting a price - ANSWER-Uniform Commercial Code Time of essence clause - ANSWER-Component of K offer that stipulates when agreement to be satisfied Model law adopted by most states codifying certain contractual concepts between merchants - ANSWER-Uniform Commercial Code The purpose of the Uniform Commercial Code is to - ANSWER-Promote business Class - ANSWER-Group of persons Auction without reserve - ANSWER-Offeror irrevocable agreement to sell property at highest bid Auction WITH RESERVE - ANSWER-offeror/offeree revocable agreement to change price at auction Under UCC, merchant may not revoke a firm offer for reasonable time (90 days) even where there is no consideration - ANSWER-Firm Offer Rule substantial beginning - ANSWER-Once party to unilateral K substantially performs, offer is irreovcable as a mattter of equity to prevent unjust enrichment (Business owner marketing sale using Jimmy the Human Fly scaling Washington Monument, and owner revokes offer at last second) Operation of law examples: - ANSWER-* Supervening Illegality * Destruction of subject matter * Death/insanity of parties * Laches rejection - ANSWER-refuse an offer undisclosed principal - ANSWER-Secret party to a k represented by agent (e.g. DuPont v. Christopher) supervening illegality - ANSWER-Passage of a law that has power to invalidate a prior K reverse unilateral contract - ANSWER-Actor makes offer option - ANSWER-Provision of K extending deadline Operation of law - ANSWER-Rights/duties devolve on a person sans any action by that party mirror image rule - ANSWER-Acceptance matches offer Mailbox rule - ANSWER-Acceptance of bilateral k effective upon proper dispatch Ironclad offer - ANSWER-Unmodifiable offer under UCC