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105 Cards in this Set
- Front
- Back
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Define bilateral contract and method of accceptance
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Exchange of promises
Offeree accepts by promising to do a stipulated act. |
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Define bilateral contract and method of accceptance
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Exchange of promises
Offeree accepts by promising to do a stipulated act. |
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Define unilateral contract and its method of acceptance
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Exchange of an act for a promise
Offeree accepts by performing stipulated act. |
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Define unilateral contract and its method of acceptance
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Exchange of an act for a promise
Offeree accepts by performing stipulated act. |
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What elements create a contract?
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Mutual assent: offer and acceptance
Consideration Absence of valid defense to formation |
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What elements create a contract?
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Mutual assent: offer and acceptance
Consideration Absence of valid defense to formation |
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What are the elements of a valid offer?
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Promise, undertaking, commitment
Definite terms Identifies offeree(s) Communicated to offeree |
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What are the elements of a valid offer?
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Promise, undertaking, commitment
Definite terms Identifies offeree(s) Communicated to offeree |
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Define bilateral contract and method of accceptance
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Exchange of promises
Offeree accepts by promising to do a stipulated act. |
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What are the elements of a valid real estate offer?
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Identification of the land
Price terms |
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What are the elements of a valid real estate offer?
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Identification of the land
Price terms |
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What are the elements of a valid offer for the sale of goods?
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Quantity term
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What are the elements of a valid offer for the sale of goods?
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Quantity term
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How may an offeror revoke an offer?
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At will
Manifests behavior inconsistent with maintenance of offer AND the offeree is aware Death or insanity of either party Destruction of subject matter Supervening illegality |
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Define unilateral contract and its method of acceptance
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Exchange of an act for a promise
Offeree accepts by performing stipulated act. |
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How may an offeror revoke an offer?
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At will
Manifests behavior inconsistent with maintenance of offer AND the offeree is aware Death or insanity of either party Destruction of subject matter Supervening illegality |
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When is the revocation of an offer effective?
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Upon receipt
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What elements create a contract?
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Mutual assent: offer and acceptance
Consideration Absence of valid defense to formation |
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When is the revocation of an offer effective?
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Upon receipt
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Define bilateral contract and method of acceptance
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Exchange of promises
Offeree accepts by promising to do a stipulated act. |
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What are the limitations on an offeror's power to revoke an offer?
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Firm offer under UCC
Option contract that's paid for Reasonably foreseeable reliance Begin performance unilateral k |
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What are the elements of a valid offer?
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Promise, undertaking, commitment
Definite terms Identifies offeree(s) Communicated to offeree |
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What are the limitations on an offeror's power to revoke an offer?
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Firm offer under UCC
Option contract that's paid for Reasonably foreseeable reliance Begin performance unilateral k |
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Define unilateral contract and its method of acceptance
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Exchange of an act for a promise
Offeree accepts by performing stipulated act. |
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In NY, how long can an offer be revoked under a unilateral contract?
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Until the completion of performance
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In NY, how long can an offer be revoked under a unilateral contract?
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Until the completion of performance
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What are the elements of a valid real estate offer?
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Identification of the land
Price terms |
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What elements create a contract?
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Mutual assent: offer and acceptance
Consideration Absence of valid defense to formation |
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How does an offeree reject an offer
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Express
Counteroffer Conditional acceptance Lapse of time |
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How does an offeree reject an offer
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Express
Counteroffer Conditional acceptance Lapse of time |
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What are the elements of a valid offer for the sale of goods?
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Quantity term
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What are the elements of a valid offer?
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Promise, undertaking, commitment
Definite terms Identifies offeree(s) Communicated to offeree |
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What are the elements of a valid real estate offer?
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Identification of the land
Price terms |
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Define bilateral contract and method of acceptance
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Exchange of promises
Offeree accepts by promising to do a stipulated act. |
|
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Define unilateral contract and its method of acceptance
|
Exchange of an act for a promise
Offeree accepts by performing stipulated act. |
|
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What elements create a contract?
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Mutual assent: offer and acceptance
Consideration Absence of valid defense to formation |
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What are the elements of a valid offer?
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Promise, undertaking, commitment
Definite terms Identifies offeree(s) Communicated to offeree |
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What are the elements of a valid real estate offer?
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Identification of the land
Price terms |
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What are the elements of a valid offer for the sale of goods?
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Quantity term
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How may an offeror revoke an offer?
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At will
Manifests behavior inconsistent with maintenance of offer AND the offeree is aware Death or insanity of either party Destruction of subject matter Supervening illegality |
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When is the revocation of an offer effective?
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Upon receipt
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What are the limitations on an offeror's power to revoke an offer?
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Firm offer under UCC
Option contract that's paid for Reasonably foreseeable reliance Begin performance unilateral k |
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In NY, how long can an offer be revoked under a unilateral contract?
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Until the completion of performance
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How does an offeree reject an offer
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Express
Counteroffer Conditional acceptance Lapse of time |
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When is an offer rejection effective?
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Upon receipt
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How may an offeree accept an offer?
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By any reasonable means unless terms unambiguously limit acceptance to particular means
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In a bilateral contract, is an offer assignable?
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No
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When is an offer assignable in a bilateral contract?
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Option k supported by consideration
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What are the elements of a valid acceptance in bilateral k?
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Offeree with power to accept
Unequivocal terms of acceptance Communication of acceptance |
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What is the mirror image rule?
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An acceptance must mirror the offer
No mirror image rule under UCC |
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In a UCC contract between merchants, what elements prevent new terms from becoming part of the offer?
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Material alteration
Offeror objection Express limitation of acceptance to terms of the offer |
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What is the mail box rule?
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Acceptance of an offer is effective at dispatch.
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What are the limitations to the mail box rule?
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Option contract
Offer stipulates acceptance only effective upon receipt |
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If an offeree sends a rejection and then an acceptance which is effective?
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Whichever arrives first
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If an offeree sends an acceptance then a rejection, which is effective?
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Acceptance is effective at dispatch per MBR unless the rejection arrives first AND the offeror detrimentally relies on it.
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When is acceptance without communication of such effective?
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The offeree silently accepts the benefits of the offer
Express waiver Offer requires an act Prior dealings/trade practices create commercially reasonable expectation. |
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What is a memorialization?
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A written record of an oral agreement.
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What is the definition of consideration?
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A bargained-for exchange of something of legal value, i.e., detriment
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When is consideration no needed to form a valid contract?
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When a technical defense bars enforcement of a prior obligation AND a new promise is made in writing, that new promise needs no consideration (moral consideration suffices)
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When does a past act constitute valid consideration?
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When done at the request of the promisor's request.
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When does the performance of a pre-existing legal duty constitute valid consideration?
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When it is owed to a third party beneficiary and it is bargained for.
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Under the U.C.C., when is consideration no needed?
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When a contract is modified in good faith.
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When is a promise illusory?
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When only one party is bound to perform
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What are the elements of a valid acceptance in bilateral k?
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Offeree with power to accept
Unequivocal terms of acceptance Communication of acceptance |
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What is the mirror image rule?
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An acceptance must mirror the offer
No mirror image rule under UCC |
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In a UCC contract between merchants, what elements prevent new terms from becoming part of the offer?
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Material alteration
Offeror objection Express limitation of acceptance to terms of the offer |
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What is the mail box rule?
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Acceptance of an offer is effective at dispatch.
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What are the limitations to the mail box rule?
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Option contract
Offer stipulates acceptance only effective upon receipt |
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If an offeree sends a rejection and then an acceptance which is effective?
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Whichever arrives first
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If an offeree sends an acceptance then a rejection, which is effective?
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Acceptance is effective at dispatch per MBR unless the rejection arrives first AND the offeror detrimentally relies on it.
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When is acceptance without communication of such effective?
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The offeree silently accepts the benefits of the offer
Express waiver Offer requires an act Prior dealings/trade practices create commercially reasonable expectation. |
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What is a memorialization?
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A written record of an oral agreement.
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What is the definition of consideration?
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A bargained-for exchange of something of legal value, i.e., detriment
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When is consideration not needed to form a valid contract?
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When a technical defense bars enforcement of a prior obligation AND a new promise is made in writing, that new promise needs no consideration (moral consideration suffices)
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When does a past act constitute valid consideration?
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When done at the request of the promisor's request.
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When does the performance of a pre-existing legal duty constitute valid consideration?
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When it is owed to a third party beneficiary and it is bargained for.
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Under the U.C.C., when is consideration not needed?
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When a contract is modified in good faith.
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When is a promise illusory?
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When only one party is bound to perform
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When is the right to cancel or withdraw from a contract not illusory?
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When the right is limited in any way, e.g., upon reasonable notice, and supported by reasonable consideration.
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What substitutes for valid consideration exist?
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Promissory estoppel
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What are the defenses to contract formation?
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Statute of frauds
Failure of a condition Mutual mistake (except valuation) Unilateral mistake so long as non-mistaken party knew or should have known of the mistake Lack of Capacity minor insane intoxicated duress or coercion Misrepresentation LUMM |
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When must a contract be in writing to satisfy the statute of frauds?
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MY LEGS
Marriage: promise made in consideration of Year lease Land: transfer of interest Estate debt payment promise Goods Sale 500 or more Surety |
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When does an agreement to guarantee another's debt not need to be in writing?
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When the guarantor's main purpose is self-benefit.
NY: no such rule |
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When does the transfer in an interest in land not need to be in writing?
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Need two out of three:
Payment: part or full Improvements Possession |
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When does an employment contract not need to be in writing?
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When there has already been full performance
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When does the sale of goods for 500 or more need not be in writing?
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Specialty goods
Merchant's confirmatory memo Acceptance or part payment of goods Full payment Judicial admission |
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When must a k modification be in writing?
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When the modification, not the original k, falls with the SOF.
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What is the Equal Dignities Rule?
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Written authority is required to enter into a k on behalf of another if the underlying k falls within the SOF.
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What must a writing for the sale of goods contain?
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Quantity term and signature of party asserting SOF defense
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What must a writing for a lease of goods contain?
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Number of items leased
Term and rental payments Defendant's signature |
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What kind of third party beneficiary has no contractual rights?
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Incidental beneficiary
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What identifies an intended beneficiary?
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Identified in k
Receives performance directly from promisor Relationship with promisee to indicate intent to benefit |
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When does a TPB's rights vest?
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Upon assent to promise
Suit to enforce Material change in position in justifiable reliance on promise |
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Which contractual rights may not be assigned?
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Substantial change in obligor's duty (unique performance)
Future rights arise from future k Prohibited by law |
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A contract states that it may not be assigned. What effect?
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Bars delegation of assignor's duties.
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A contract states that the contractual rights are not assignable. What effect?
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It is not a bar to assignment but assignment gives obligor right to sue for damages.
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When is an assignment ineffective?
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When an assignee has knowledge of the non-assignment clause.
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True or False.
A gratuitous assignment requires consideration. |
False
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When is an assignment effective?
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When the assignor manifests an intent to immediately and completely transfer his rights.
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When is an assignment irrevocable?
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When it's paid for.
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When is a gratuitous assignment irrevocable?
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Obligor has already performed.
Delivery of token chose Simple chose is put in writing Estoppel: detrimental reliance |
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How is a gratuitous assignment terminated?
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Death or bankruptcy assignor
Notice of revocation: assignee or obligor Assignor takes performance Subsequent assignment of same right to another |
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In an assignment who holds privity of contract?
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The assignee and obligor
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When can an assignee sue an assignor?
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For wrongful revocation of irrevocable assignment.
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When is an assignor not liable to an assignee?
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When the obligor is incapable of performing.
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