CONTRACTS EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2024 ALREADY PASSED
Three basic questions: - Answers 1. Has an enforceable contract been formed?
2. Has the contract been performed (or, has performance been excused)?
3. What are the remedies for breach?
What is a contract? - Answ...
Three basic questions: - Answers 1. Has an enforceable contract been formed?
2. Has the contract been performed (or, has performance been excused)?
3. What are the remedies for breach?
What is a contract? - Answers A legally enforceable agreement.
Agreement + Legal basis for enforcing the contract (ex: bargained for consideration).
Common-law contracts deal with: - Answers 1. Real estate OR
2. Services
UCC contracts deal with: - Answers 1. Goods: tangible things that you can pick-up and move.
All or Nothing Rule - Answers Generally, mixed contracts must be governed by either common-law or
UCC, not both.
Exception: Divisible contracts (if the contract is divided into two mini-contracts).
Divisible Contracts Exception to the All or Nothing Rule - Answers If the agreement is divided into two
mini-contracts then both the common-law AND the UCC can govern.
For instance: the sale and installation of an appliance, if broken up into two mini deals.
Predominant Purpose Rule - Answers When a contract could technically be governed by both common-
law AND UCC (indivisibly), you ask whether a good (UCC) or service (CL) plays a bigger role.
Has an enforceable contract been formed? 4 Part Test - Answers "*A*ll *C*ontracts *D*on't *S*tink"
A = Agreement (Offer and Acceptance)
C = Consideration
D = Defenses to Formation (incapacity, duress, etc.)
S = Statute of Frauds
,Offer - Answers An offer is a manifestation of a willingness to enter into an agreement (by the offeror)
that creates a POWER OF ACCEPTANCE (in the offeree).
Offer and acceptance are governed by the: - Answers objective, which means that outward appearance
of words and actions is what matters—not secret intentions.
**The key question is whether an offeror displays an objectively serious intent to be bound.
**Watch out for situations involving anger or humor—the offeror may not be displaying a serious intent
to be bound under the objective test.**
An offer must usually be directed to a specific offeree, exceptions: - Answers Limited exception for
contest offers or reward offers that promise something to anyone who accomplishes a certain task (offer
is directed to a broad group of people).
What terms must be included in a common-law offer? - Answers "Essential Terms"
1. Parties
2. Subject
3. Quantity
+
4. PRICE
What terms must be included in a UCC offer? - Answers "Essential Terms"
1. Parties
2. Subject
3. Quantity
NOTE: Price need not be stated.
Requirements Contract - Answers A buyer agrees to purchase all of its needs of a given contract from
the seller during a certain period of time.
Ex: "I don't know how many I need over the next X years, but I promise to buy all of them from you."
, ***Specific enough under the UCC, EVEN THOUGH it doesn't state an exact quantity term—it provides a
formula for calculation.***
Output Contract - Answers a contract in which you promise to deliver your entire output to the other
party who promises to accept it.
Ex: "I don't know how many I will produce over the next X years, but I promise to sell all of them to you."
***Specific enough under the UCC, EVEN THOUGH it doesn't state an exact quantity term—it provides a
formula for calculation.***
Invitations to Deal - Answers are preliminary communications that still reserve a final round of approval
with the speaker. That is, they don't confer a power of acceptance to the other side.
***Invitations to deal ARE NOT OFFERS.****
Are advertisements considered offers? - Answers No, advertisements are usually understood as
invitations to deal ("make me an offer for the advertised item; I'll probably accept").
***Invitations to deal are not offers.****
Advertisements that are very specific and leave nothing open to negotiation, including how acceptance
can occur, are generally considered - Answers valid offers, not merely invitations to deal.
Offers can be terminated in the following 6 ways: - Answers 1) REVOCATION by Offeror
2) DEATH or Mental Incapacity of the Offeror
3) REJECTION of the offer - by Offeree
4) COUNTEROFFER - by Offeree
5) CONSTRUCTIVE revocation
6) Lapse of TIME (either specified or "reasonable" amount)
Revocation of an Offer by Offeror - Answers expressed communication to the offeree revoking the offer
TERMINATES THE OFFER.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
