Comprehensive Contract Law Principles and Formation
Rules Questions With Complete Solutions
Define 'good faith' in the context of contract modification.
correct answers 'Good faith' refers to having a legitimate
commercial reason for the modification without extortion.
Define 'goods' according to the UCC. correct answers Movable
things at the time of identification to the contract for sale,
excluding money and certain securities.
How can courts validate or invalidate contracts based on public
policy? correct answers Courts assess whether the contract
aligns with public policy considerations, which may include
social issues like marriage equality.
How does Restatement §40 define the termination of the power
of acceptance? correct answers Rejection sent terminates the
power of acceptance, and the first communication received by
the offeror is binding.
How is a misrepresentation defined as fraudulent according to
Restatement §162? correct answers A misrepresentation is
fraudulent if the maker knows the assertion is false, lacks
confidence in the assertion, or knows they do not have the basis
for the assertion.
Under what circumstances can the Pre-existing Duty Rule be
bypassed? correct answers The rule can be bypassed if
unexpected or unanticipated circumstances arise.
,Under what circumstances does nondisclosure equate to an
assertion according to Restatement §161? correct answers
Nondisclosure equates to an assertion when it prevents a
previous assertion from being misrepresented, corrects a mistake
about a basic assumption, corrects a mistake about a writing, or
when there is a relationship of trust.
Under what conditions does a party bear the risk of a mistake
according to Restatement §154? correct answers A party bears
the risk if it was allocated by agreement, if they had limited
knowledge but treated it as sufficient, or if the court finds it
reasonable to allocate the risk.
What are gap-fillers in contract law? correct answers Default
terms that fill in missing elements in a contract, such as price,
delivery, and time of transitions.
What are illusory promises according to Restatement §77?
correct answers Illusory promises are those that make
performance optional and do not constitute a valid promise.
What are some examples of public policy issues that courts may
consider? correct answers Issues include noncompetes,
restraints of trade, impairment of family relations, and
interference with other protected interests.
What are statutory requirements of disclosure in real estate?
correct answers Statutory requirements mandate disclosure of
specific facts, such as lead paint or fire hazards, which can be
rigid and outdated.
, What are the classic principles of contract law? correct answers
Utilitarian approach, moral obligation, common law perspective,
equitable concerns.
What are the five categories of agreements covered by the
Statute of Frauds? correct answers 1) Marriage Provision; 2)
Land Contract Provision; 3) One-Year Provision; 4) Suretyship
Provision; 5) Executor-Administrator Provision.
What are the four ways to destroy an offer? correct answers
Rejection, revocation, lapse, and death/incapacity.
What are the requirements for a claim of Promissory Estoppel?
correct answers 1) A promise was made; 2) The promisor could
foresee reliance; 3) Actual reliance occurred; 4) Enforcement is
necessary to avoid injustice.
What are the three 'buckets' of contracts? correct answers
Formation, interpretation and compliance, and consequences of
breach.
What are the three conditions under which a contract
modification is binding according to Restatement §89? correct
answers 1) The modification is fair and equitable given
unanticipated circumstances; 2) Provided by statute; 3) Justice
requires enforcement due to material change in reliance.
What are the three elements to determine if a contract should be
voided? correct answers 1) A party makes a fraudulent or
material misrepresentation, 2) That misrepresentation induces
Rules Questions With Complete Solutions
Define 'good faith' in the context of contract modification.
correct answers 'Good faith' refers to having a legitimate
commercial reason for the modification without extortion.
Define 'goods' according to the UCC. correct answers Movable
things at the time of identification to the contract for sale,
excluding money and certain securities.
How can courts validate or invalidate contracts based on public
policy? correct answers Courts assess whether the contract
aligns with public policy considerations, which may include
social issues like marriage equality.
How does Restatement §40 define the termination of the power
of acceptance? correct answers Rejection sent terminates the
power of acceptance, and the first communication received by
the offeror is binding.
How is a misrepresentation defined as fraudulent according to
Restatement §162? correct answers A misrepresentation is
fraudulent if the maker knows the assertion is false, lacks
confidence in the assertion, or knows they do not have the basis
for the assertion.
Under what circumstances can the Pre-existing Duty Rule be
bypassed? correct answers The rule can be bypassed if
unexpected or unanticipated circumstances arise.
,Under what circumstances does nondisclosure equate to an
assertion according to Restatement §161? correct answers
Nondisclosure equates to an assertion when it prevents a
previous assertion from being misrepresented, corrects a mistake
about a basic assumption, corrects a mistake about a writing, or
when there is a relationship of trust.
Under what conditions does a party bear the risk of a mistake
according to Restatement §154? correct answers A party bears
the risk if it was allocated by agreement, if they had limited
knowledge but treated it as sufficient, or if the court finds it
reasonable to allocate the risk.
What are gap-fillers in contract law? correct answers Default
terms that fill in missing elements in a contract, such as price,
delivery, and time of transitions.
What are illusory promises according to Restatement §77?
correct answers Illusory promises are those that make
performance optional and do not constitute a valid promise.
What are some examples of public policy issues that courts may
consider? correct answers Issues include noncompetes,
restraints of trade, impairment of family relations, and
interference with other protected interests.
What are statutory requirements of disclosure in real estate?
correct answers Statutory requirements mandate disclosure of
specific facts, such as lead paint or fire hazards, which can be
rigid and outdated.
, What are the classic principles of contract law? correct answers
Utilitarian approach, moral obligation, common law perspective,
equitable concerns.
What are the five categories of agreements covered by the
Statute of Frauds? correct answers 1) Marriage Provision; 2)
Land Contract Provision; 3) One-Year Provision; 4) Suretyship
Provision; 5) Executor-Administrator Provision.
What are the four ways to destroy an offer? correct answers
Rejection, revocation, lapse, and death/incapacity.
What are the requirements for a claim of Promissory Estoppel?
correct answers 1) A promise was made; 2) The promisor could
foresee reliance; 3) Actual reliance occurred; 4) Enforcement is
necessary to avoid injustice.
What are the three 'buckets' of contracts? correct answers
Formation, interpretation and compliance, and consequences of
breach.
What are the three conditions under which a contract
modification is binding according to Restatement §89? correct
answers 1) The modification is fair and equitable given
unanticipated circumstances; 2) Provided by statute; 3) Justice
requires enforcement due to material change in reliance.
What are the three elements to determine if a contract should be
voided? correct answers 1) A party makes a fraudulent or
material misrepresentation, 2) That misrepresentation induces
