Contracts A

Front 1

Consideration (define)

Back 1

A legally sufficient, bargained-for exchange, which induces current performance, is a detriment to the promisee and is a binding obligation on both parties.

Front 2

Unilateral contract (def)

Back 2

A unilateral contract is a promise for a performance.

Front 3

Unilateral contract (ex.)

Back 3

Buyer offers to pay 30 days after delivery of goods if the seller delivers goods.

Front 4

Bilateral contract

Back 4

A bilateral contract is a promise for a promise.

Front 5

Objective theory of assent

Back 5

Under the objective theory of assent, the court looks to how the actions of the parties manifest their intent.

Front 6

Objective theory of assent (case)

Back 6

Lucy v. Zehmer

Front 7

Intention to be bound rule

Back 7

A party may be bound to a contract if he did not intend to be bound by a contract or even if he did not understand the legal consequences of his actions.

Front 8

Intention to be bound rule-exception

Back 8

If a party intends that his assent have no legal consequence, the court will honor that assent if the other party knew of his intent or should have known.

Front 9

Intention to be bound rule-exception (example)

Back 9

An offer made in jest that the other party knows is a jest.

Front 10

Offer (define)

Back 10

An offer is a manifestation of present contractual intent communicated to an identified offeree, containing definite and certain terms

Front 11

Ads, Catalogs, and quotes (rule)

Back 11

Advertisements, catalogs, and quotes are generally not offers but:
invitations to deal
Solicitations of offers based on advertised terms
Invitations to receive offers

Front 12

Exceptions to Ads, Catalogs, and quotes rule

Back 12

1. When the quote has been solicited and the 'quote' contains all material terms of the offer and identifies the offeree, usually by performance

Front 13

lowest price/highest price rule

Back 13

If a statement contains the lowest price at which a person would sell or the highest price a person would pay, the statements is not an offer to buy or sell respectively at that price.

Front 14

'Quote' is an offer exception (case)

Back 14

Fairmount Glass Works

Front 15

Lowest price not an offer (cases)

Back 15

Owen v. Tunison
Harvey v. Facey

Front 16

When is an offer effective?

Back 16

When it reaches the offerree.

Front 17

Do identical crossing offers create a contract?

Back 17

No

Front 18

Auction without reserve

Back 18

The auctioneer is the offeror.
The auctioneer is bound by offering the item.

Front 19

Auction with reserve

Back 19

The bidder is the offereror.
The bidder is bound when he makes his bids.
The auctioneer is merely inviting the bidders to deal.

Front 20

Promised gift

Back 20

A gratuitous promise to make a gift are not enforceable.

Front 21

Bargained-for exchange

Back 21

Both parties give something to induce an exchange.

Front 22

Induces current performance

Back 22

Past consideration is no consideration.

Front 23

Exception to past consideration is no consideration rule

Back 23

When you do something at someone's request and that person afterwards promises something something for doing that requested act, that promise is enforceable.

Front 24

Is moral consideration consideration?

Back 24

Moral consideration is no consideration.

Front 25

Moral consideration exception--debts

Back 25

Debts that are barred by a technical defense such as statute of limitations, Statute of Frauds, incapacity, and bankruptcy will be enforceable (for amount reaffirmed) if reaffirmation is in writing

Front 26

Pre-existing duty Rule

Back 26

A promise to perform an existing legal duty is not sufficient consideration.

Front 27

Applicability of pre-existing duty Rule

Back 27

The pre-existing duty rule applies only to common law contracts.

Front 28

Exception to pre-existing duty rule

Back 28

A promise to perform an existing legal duty is enforceable is consideration if the pre-existing duty is owed to a third party.

Front 29

Detriment to the promisee

Back 29

Detriment to the promisee is doing something that someone is not obligated to do, or refraining from doing something that one has the legal right to do.

Front 30

Is forebearance to sue a legal detriment?

Back 30

Forebearance to sue is a detriment if the promisee had a good faith belief that there was a valid claim at the time of the forebearance.

Front 31

What kind of conditional promises are illusory?

Back 31

A conditional promise that is entirely in the control of the promisor is illusory.

Front 32

What kinds of conditional promises are not illusory

Back 32

Satisfaction promises are not illusory because the promisor must act in good faith.

Front 33

Requirement and output contracts

Back 33

Requirement and output contract are binding because the parties must either require or perform in good faith.

Front 34

cancellation clauses

Back 34

cancellation clauses are not illusory as long as there is some restriction on the time before cancellation.

Front 35

What does promissory estoppel require?

Back 35

Promisory estoppel requires reasonable, forseeable, and substantial reliance.

Front 36

How is enforcement of promisory estoppel limited?

Back 36

Enforcement of promisory estoppel is limited to the amount that would prevent and unjust result, not the contract amount.