BLAW Exam #3 Review Questions and Answers
A theory under which the intent to form a contract will be judged by outward, objective facts (what the party said when entering into the contract, how the party acted or appeared, and the circumstances surrounding the transaction) as interpreted by a reas...
A theory under which the intent to form a contract will be judged by outward, objective
facts (what the party said when entering into the contract, how the party acted or
appeared, and the circumstances surrounding the transaction) as interpreted by a
reasonable person, rather than by the party's own secret, subjective intentions. - answer
What is the objective theory of contracts?
1. agreement
2. consideration
3. contractual capacity
4. legality - answer What are the four requirements of a valid contract?
1. Voluntary consent- you can't be misled, forced; "a meeting of minds"
2. Proper form- oral promises are enforceable (sale of land) - answer What are the
two defenses to the enforcement of a contract?
Unilateral Contract - answer promise in exchange for an act
Bilateral Contract - answer A promise made in exchange for another promise
Formal Contract - answer An agreement that by law requires a specific form for its
validity.
informal contract - answer A contract that does not require a specified form or
formality in order to be valid.
Express Contract - answer A contract in which the terms of the agreement are stated
in words, oral or written.
Implied Contract - answer A contract that comes about simply from actions of the
parties.
you break it, you bought it - commonly attributed to Colin Powell in his warnings about
an invasion of Iraq - answer What is the Pottery Barn Rules
Executed Contract - answer a contract that has been fully performed by both parties
executory contract - answer A contract that has not yet been fully performed.
Void Contract - answer A contract having no legal force or binding effect.
, Voidable Contract - answer A contract that may be legally avoided at the option of
one or both of the parties.
Unenforceable Contract - answer A valid contract rendered unenforceable by some
statute or law.
a rule of construction which states that words should be interpreted using their ordinary
or plain meaning. - answer What is the Plain Meaning Rule
Extrinsic Evidence - answer any evidence not contained in the document itself - such
as the testimony of parties and witnesses, additional agreements or communications, or
other relevant information
Quasi Contract - answer court-imposed obligation to prevent unjust enrichment in the
absence of a contract
"as much as he or she deserves" generally the measure of damages in quasi-contract
cases - answer What does Quantun Meruit mean
Hamer v. Sidway (1891)
Uncle said he would give his nephew 5000 when he was 21 if he refrained from
"drinking alcohol, smoking, swearing, playing cards or billiards for money". The uncle
died and the executor would not pay. The court found that forbearance was good
consideration and ordered the money to be paid.
Consideration is valid as long the promisee abandons some legal right in the present or
limits future actions - answer What happened in the Hamer v. Sidway case (1891)
Remedies for breach of contract.
Claiming damages: remoteness rules (damages claiming for loss)
Essential part for their mill broke. Gave to courier to carry to the maker for a
replacement, they knew that P was the owner of the mill and that they were carrying a
broken mill shaft. Not sent for repair for 7 days and could not work in this time. Not
entitled to damages of lost productivity as courier was not aware of the urgency of
request (too remote). - answer What happened in the Hadley v Baxendale case?
What rule came from it?
Zehmer owned a piece of property that Lucy wanted to buy. One night at Zehmer's bar,
Lucy made an offer which Zehmer allegedly accepted. He and Lucy both signed a
napkin which had specific details concerning the price and title of the land. Zehmer also
had his wife sign it. Zehmer later contended that he was joking and that he didn't really
want to sell. Doesn't matter.
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