Chapter 13 - contracts

Question 1

Offer

Answer 1

• Definite terms:
  
  • price to be paid
  • parties
  • nature of subject matter
  • quantity involved
  • time for performance
• intent
• comm. to offeree

Question 2

When Offer Terminates

Answer 2

• Expiration
• Revocation (revoke by offeror) - when received
  
  • unless option contract
• Rejection
• counteroffer
• operation of law:
  
  • death or insanity of either party
  • destruction of subject matter
  • illegality

Question 3

Acceptance

Answer 3

• mirror rule - all terms and conditions
• early acceptance rule - (mailbox rule)
  
  • when dispatched
  • or unless stated by offeror in contract

Question 4

Consideration

Answer 4

• of value (legally sufficient)
  
  • money goods, services or the promise to perform
  • giving up legal right
  • no preexisting legal obligation
  • need not be of equal value
• bargained for exchange
  
  • what the parties intended to receive
  • a gift is not bargained for
  • past consideration is no consideration
• modification needs new consideration by both
• no consideration for:
  
  • charity

Question 5

Voidable Contract

Answer 5

• Duress (threat/force)
• Undue influence (trust/confidence)
• Misrepresentation of material fact
• Mistake
• Capacity

Question 6

Misrepresentation of material fact

Answer 6

• voidable contract
• unintentional - MILE
• intentional (fraud)
  
  • fraud in the inducement

Question 7

Mistake

Answer 7

• voidable contract
  
  • mutual - both parties are mistaken
    
    • can be rescinded
  • unilateral - one person is mistaken
    
    • if other party knew - material
    • an immaterial unilateral - no void

Question 8

Minor

Answer 8

• part of capacity for voidable contracts
• Minor -
  
  • may disaffirm contract any time prior to or within reasonable time of reaching majority.
  • non minor cant disaffirm
  • may ratify contract when reach majority and become liable.

Question 9

Void contracts

Answer 9

• contract is void and cannot be enforced
  
  • extreme duress
  • fraud in execution - when other party doesnt know what they are signing (deception)
  • illegal subject matter
  • incompentent persons - by law

Question 10

Statute of frauds

Answer 10

• has to be in writing and signed by weasel if:
  
  • G - oods worth $500 or more
  • R - eal estate
  • O - ver one year (bilateral)
  • S - uretyship (guarantee debt of another
  • S - tatements of marriage

Question 11

Exceptions for sale of goods for statute of frauds

Answer 11

• S - pecifically manufactured goods
• Partially performed
• Admits in court
• Merchant - merchant doesnt object within 10 days

Question 12

Parole evidence rule

Answer 12

• Whenever a written contract exists, it bars from court:
  
  • prior written or oral contracts on the same matter
  • concurrent oral contracts (contemporaneous)
• Rule doesnt bar (still admissible)
  
  • subsequent oral modifications
  • evidence to prove fraud, duress, mistakes of written contract
  • subjects not addressed or ambiguous in writtien contract