LSB 3213 - exam 2 All Possible Questions and Answers with complete solution

what is anticipatory repudiation? - Doctrine under which, when one party makes clear that party has no intention to perform as agreed, nonbreaching party is entitled to recover damages in anticipation of breach rather than waiting until performance is due. what are the five consent defects? - 1. Misrepresentation 2. Fraud 3. Duress 4. Undue influence 5. Unconscionability how did the Virginia state supreme court rule in Lucy v. Zehmer (1954)? - The court held that evidence from the trial indicated that Zehmer took the transaction seriously and that Lucy was not unreasonable in believing that a contract was formed under the circumstances. The court made clear that actual mental intent is not required for formation of a contract. according to the mailbox rule, when is an acceptance generally effective? - it is effective upon dispatch when sent in a commercially reasonable manner and not when the acceptance is received by the offeror as a general rule, what statues do illegal contracts have? - it is automatically void, statutory violations at what point after making an offer can an offeror no longer revoke the offer? - offeres in the form of an option contract how did the New York Court of Appeals rule in Jacobs and Youngs v. Kent(1921)? - Rules in favor of JY saying that they acted in good faith and there was not a result of fraud how did the Ninth Circuit Court of Appeals rule in C.M.D. v. Facebook(2015)? - Rules against C.M.D in an unpublished memorandum opinion, affirming the decision of the district court judge to dismissC.M.D's complaint. Also concluded that he had not disaffirmed or disavowed facebooks user agreement, since he continued to use facebook even after filling his lawsuit in general, what are the three elements that an aggrieved party must prove to avoid a contract on the basis of misrepresentation? - 1. Misrepresented fact was material 2. that party justifiably relied on misstatement when forming agreement 3. misrepresentation was one of fact and not just opinion or mere puffing in general, what is the age below which a person is considered to lack full capacity to contract? - minors - 18 under in general, what status do the contracts of a person who lacks capacity have? - mental incompetency in general, what type of law governs contracts for services? - Common law contracts in general, what type of law governs contracts for the sale of goods? - UCC sales contract under what circumstance must a contract be in writing to satisfy the statute of frauds? - Statute of Frauds; "money selling" what are the four basic required elements of a valid contract? - Mutual Assent: parties to contract must indicate through words or behavior that they willingly agree to enter into contract Consideration: both sides must obtain something of value (legal benefit) and give something of value (legal detriment) Legality of purpose: contract must satisfy legal purposeCapacity: both parties to contract must have legal standing to enter into contracts what are the four methods of discharge by mutual agreement and what is the difference between them? - 1. Rescission: when parties agree to cancel contract 2. Accord and satisfaction: one party agrees to render substitute performance in future and other party promises to accept that substitute performance to discharge existing performance obligation 3. substitute agreement: when contracting parties discharge their obligations by replacing original contract with new agreement 4. Novation: when parties agree to substitute third party for one of the original parties to contract what are the four types of money damages and what is the difference between them? - 1) Compensatory (direct or actual) damages: Damages meant to make injured party whole again. 2) Consequential damages: Foreseeable indirect losses not covered by compensatory damages. caused by unique foreseeable circumstance 3) Restitution: Remedy that restores to plaintiff value of performance that plaintiff has already rendered to breaching party and by which breaching party has been unjustly enriched. 4) Liquidated damages:Damages that parties expressly define in contract and agree will compensate nonbreaching party what are the three doctrines of discharge by operation of law and what is the difference between them? - 1. Impossibility: when contemplated performance of obligations becomes objectively impossible and, therefore, is subject to discharge 2. Impracticability: discharge arising when performance is not objectively impossible yet performance becomes extremely burdensome due to some unforeseen circumstance occurring between time of agreement and third of agreement and time of performance3. Frustration of purpose: when one party's purpose is completely or almost completely frustrated by supervening events, courts may discharge that party from performance what are the three general categoried of conditions and what is the difference between them? - Condition Precedent: contract term that requires an event to occur before performance under contract due Condition Subsequent: contract term that discharges parties obligations if event occurs after performance under contract Condition Concurrent: when each party is required to render performance simultaneously what are the three types of equitable relief and what is the difference between them? - 1) specific performance: equitable remedy whereby court orders breaching party to render promised performance by ordering party to take specific action. 2) injunctive relief: court order to refrain from performing particular act. 3) reformation: contract modification in which court rewrites contract to conform to parties' actual intentions when parties have imperfectly expressed their agreement and imperfection results in dispute. what does fraud require in terms of knowledge about false representation? - Fraudulent misrepresentation; that has actual knowledge what is a breach? - when one party has failed to perform that party's obligation under contracT