LEGL 2700 Exam 2 Questions And Answers Already Graded A+
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Course
LEGL 2700
Institution
LEGL 2700
What kind of contracts do not have a lawful purpose? - ️️Contracts that require
commission of a crime or tort or violate accepted standards of behavior (they are void)
and Courts typically do not take action on such contracts
(ch 8)
implied-in fact contracts - ️️contracts which arise fr...
LEGL 2700 Exam 2
What kind of contracts do not have a lawful purpose? - ✔️✔️Contracts that require
commission of a crime or tort or violate accepted standards of behavior (they are void)
and Courts typically do not take action on such contracts
(ch 8)
implied-in fact contracts - ✔️✔️contracts which arise from the conduct of the parties
rather than words (i.e. asking an accountant for professional advice implies a promise to
pay money for it though u don't make an express promise to pay for it) (ch 8)
Contracts - ✔️✔️Promises that are enforceable with predictable consequences for
performance failures, does not have to be written (ch 8)
Contract Law comes from either - ✔️✔️Legislation- UCC Article 2 covers sale of goods
Common Law- judge made law for contracts for things other than goods (ch 8)
bilateral contract - ✔️✔️promise for promise exchange (ch 8)
unilateral contract - ✔️✔️promise is made in exchange for performance so only one
party is committed to perform (ch 8)
express contracts - ✔️✔️contracts which arise from interactions in which parties
actually discuss the promised terms of their agreement(i.e. negotiated purchase of land
for construction of a plant) (ch 8)
Implied-in-law or quasi-contracts - ✔️✔️judicial remedy to prevent 1 party from
receiving unjust enrichment
or
when one party is unjustly enriched at the expense of another, the law may imply a duty
on the first party to pay the second even tho there is no contract b/t the 2 parties (ch 8)
voidable - ✔️✔️enforceable until a party w/ the right to do so elects to void agreement
(ch 8)
unenforceable contract - ✔️✔️result if nonperforming party has a justifiable reason for
noncompliance with a promise; void (ch 8)
Requirements for an Enforceable Contract - ✔️✔️1) offer to enter into contract
2) acceptance of offer
3)Consideration for each promise
4) Capacity of each party to enter into binding agreement
,5) legality of subject matter
(ch 8)
Mirror Image Rule - ✔️✔️acceptance must match the offer exactly
i. UCC 2207: expression of acceptance or written acceptance is acceptance, even if
terms are changed
1. Unless offer limits acceptance to original terms
2. Unless additional terms are so far removed from original
3. Unless receiver rejects goods
(ch 8)
Silence - ✔️✔️is not acceptance unless otherwise noted (ch 8)
Defenses to Contract Enforcement - ✔️✔️- Improper form when a writing is required
- No true meeting of the minds due to fraud or mistake
(ch 8)
Who do not have the capacity to be bound by contracts? - ✔️✔️Minors
Intoxicated people
Mentally incompetent people
(ch 8)
Termination of Contract - ✔️✔️Must be done before acceptance
i. Explicit acts:
1. Revocation: revoke offer ("I take it back!")
2. Rejection: offeree rejects offer
3. Counter-offer: offeree rejects offer and makes offer of new contract
4. Lapse of time: deadline either referred to in offer or after a reasonable amount of time
ii. Operation of law
1. Subject matter destruction: object of contract is destroyed
2. Death or insanity: offeror is incapacitated from making decisions
3. Subject matter legality
(ch 8)
"Meeting of Minds" - ✔️✔️mutual understanding of contract (ch 8)
The elements of fraud are (lacking meeting of minds) - ✔️✔️1) misrepresentation of
fact (opinion is not fraud)
2) intent to deceive
3) innocent party has to reasonably believe lies
4) injury resulting from reliance
(ch 8)
Fraud is part of what form of law? - ✔️✔️tort (ch 8)
, Mutual mistake (lacking meeting of minds) - ✔️✔️-if both parties misunderstand
something core to contract
-mistake must be of fact and not of value
example: roger finds what appears to be a valuable topaz. Him and betsy both think the
stone is a diff value. Roger sells it to betsy for $200. IF, Roger finds out its worth $600
actually- cant void bc both parties were guessing value. IF, they take it to jeweler and he
says its worth $200 and then they find out jeweler knows nothing, they can void
contract.
(ch 8)
Unilateral Mistake (lacking meeting of minds) - ✔️✔️-Only one party doesnt understand
-no remedy for this
Ex: customer goes to jewelry store and wants to buy jewelry on credit. Jeweler mistakes
customer for a rich regular so no credit checks are done. Customer didn't do anything.
Contract not voidable bc not known to customer, only jeweler made mistake. (ch 8)
Duress (lacking meeting of minds) - ✔️✔️o Use of force to get into contract
o Physical, emotional, economical
o Contract can be voided bc done under duress
(ch 8)
Undue influence (lacking meeting of minds) - ✔️✔️o Someone taken advantage of
unfairly thru contract by party who misuses a position of relationship or legal confidence
- usually person of mental disability or old age (happens a lot in wills)
o Ex of ppl who exercise undue influence: lawyers, caregivers, adult children
o Ex of things they say: what if I left you? You better sign this
(ch 8)
Duress doesn't include - ✔️✔️threatening to sue or ones assertion of legitimate busn
consequences (ch 8)
What kind of form does contract have to be in to matter? - ✔️✔️- Form in general
doesn't matter
- Can be oral if all elements met
- Writing is better bc easier to prove
(ch 8)
Statute of Frauds - ✔️✔️- Legal requirement that certain contracts be in writing
- Exchanging email msgs can be enough
(ch 8)
Business contracts required in writing are: - ✔️✔️sale of interest in land, contracts that
can't be performed in 1 year, sale of goods more than $500, insurance contracts, written
estimates for auto repair, collateral contracts to pay debt of another person (ch 8)
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