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41 Cards in this Set
- Front
- Back
Quasi K
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ii. Elements
1. P has conferred a benefit on D, and 2. P reasonably expected to be paid, and 3. D realized unjust enrichment if P not be compensated Measure of Recovery 1. K price is not the measure of recovery 2. focus on value of benefit conferred 3. K price is a ceiling if P is in Default |
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Considerations for UCC to apply
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Factors used to Determine whether Article 2 applies
1. type of transaction—sale 2. subject matter of transaction—goods, tangible, personal property (all property other than real estate) 3. Note a. Dollar amount is irrelevant b. Don’t need to have merchants involved |
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Common Law Applies
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1.services K—common law only
2.real estate—common law only |
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Mixed K (goods and real estate/services)
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Rule: what is the more important part of K, the goods or real estate/services part?
Pg. 3 # 5 car sale and yo yo lessons—UCC applies # 6 buys a yo yo and 10 lessons from Yo Yo Ma for $40K—common law applies, because the services part is more importate |
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Express Divisions (goods and real estate/services) of Payment in K
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Rule: If the K divides payment, then apply UCC to sale of goods and common law to the rest
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Offer
Content Requirements (Generally) |
(i) an expression of promise, undertaking, or commitment to enter into a contract;
(ii) definite and certain in its terms; (price, amount, who incurs obligation) and (iii) communicated to the offeree. |
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Offer
Price (UCC v. Common Law) |
Real Estate: Requires Price
UCC: no absolute price requirement if so intended by the parties |
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Offer
Advertisement Rule |
Generally: invitation to offer
Exceptions: reward offer if it is specific as to quantity and expressly indicates who can accept |
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Termination of Offers
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Lapse of Time
limit stated in offer unreasonably long duration of time before acceptance |
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Termination of Offers
Revocation |
a. Unambiguous statement by offeror to offeree of unwillingness or inability to K
b. OR unambiguous conduct by offeror indicating an unwillingness or inability to K and that the offeree is aware of the revocation |
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Termination of Offers
Revocation (Mail) |
a. revocation of an offer sent through “the mail” is not effective until received
does NOT require that the receiving party have knowledge of contents upon receipt An offer CANNOT be revoked after it has been accepted |
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Irrevocable Offers
Option K (Common Law) |
Promise to Keep an Offer Open
AND there is payment and consideration |
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Irrevocable Offers
Firm Offer Rule (UCC) |
Cannot be revoked for up to three months
if writing gives a longer period, only for 3 months NO time period stated in writing; offer irrevocable for a period fixed by court no greater than 3 months (25) Offer to buy or sell goods, Signed, written promise to keep offer open, Must have an explicit statement that the offer will be kept open (pg. 9, 26) And party is a MERCHANT |
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Irrevocable Offers
Foreseeable Detrimental Reliance |
General Contractor and Sub Contractor
GC makes bid based on SC’s bid to do work on a certain price; SC cannot revoke |
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Irrevocable Offers
Start Performance (NOT preparation) based on Unilateral K Offer |
start performance makes irrevocable (MBE: “only by” in the offer, think unilateral K)
Mere Preparation is NOT PERFORMANCE (MBE: if any doubt between performance and preparation, its preparation; but detrimental reliance might be a coa) |
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Rejection: Termination of Offer
counter offer v. bargain |
Counteroffer Terminates Original Offer (MBE: will be a stattment)
Bargaining DOES NOT terminate original offer (MBE: will be a question) |
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Rejection: Termination of Offer
conditional acceptance |
Conditional Acceptances Terminates Offers
MBE: “so long as” “but” “on condition that” “if” “provided that”; these all signal conditional acceptance, and terminate ability to accept original offer—it is a counter offer |
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Rejection: Termination of Offer
Mirror Image Rule (common law only) |
An acceptance that adds new terms is treated like a counteroffer rather than an acceptance
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Rejection: Termination of Offer
UCC (additional terms) Article 2-207 |
a. Under the UCC, a response to an offer that adds new terms, is generally treated as acceptance, SO LONG AS
i. Seasonable Expression of Acceptance 1. CANNOT be a conditional acceptance, language of condition will take you to conditional acceptances ii. Both parties MUST be MERCHANTS (pg. 11, 37) iii. new term is NOT A MATERIAL CHANGE |
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Rejection: Termination of Offer
Death of a Party Prior To Acceptances |
Rule: death or incapacity of either party terminates offer.
Exceptions 1) Option 2) Part Performance of Offer to enter into Unilateral K |
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Acceptance of An Offer
Who Can Accept |
A person MUST KNOW ABOUT OFFER at the time she accepts
Offers CANNOT BE ASSIGNED; may only be accepted by the person to whom it was made Options Exception (43): options can be assigned |
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Acceptance of An Offer
Full Performance As Acceptance |
Full performance is always acceptance
however, failure to notify about performance results in contractual duty being discharged (MBE: watch for facts that place the offeror in one location (CA), and performance in a different location(TX)) |
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Acceptance of An Offer
Part Performance Where Acceptance is NOT Specified |
If offer does not specify how to accept, starting to perform is acceptance
ii. If offer REQUIRES PERFORMANCE for acceptance, PERFORMANCE MEANS COMPLETION OF PERFORMANCE, not just starting performance (so acceptance is not valid) |
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Acceptance of An Offer
Performance Required for Acceptance |
Different Obligations b/n Offer and Acceptance
a. start performance creates an obligation on offeror to keep offer open, offer irrevocable b. but only full completion constitutes acceptance by the offeree |
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Acceptance of An Offer
Offer accepted by promise to perform |
Promise to perform by the offeree creates a binding K
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Acceptance of An Offer
offer + cash |
An Offer is Accepted When the Offeree Cashes a Check that comes with Offer
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Acceptance of an Offer
Mailbox Rule |
Acceptance: effective when sent IF
1) made in a manner and means by means invited 2) AND the offeree has not already sent a rejection If rejection and acceptance are sent, whichever arrives first is binding If acceptance, then rejection, mailbox rule (if rejection arrives first, no mailbox if offeree relies on rejection) If rejection, than acceptance, whichever arrives first |
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Acceptance of an Offer
Rejection OF Option K |
Rejection of an option does not terminate the offer;
the offeree free to accept the offer within the option period UNLESS the offeror has detrimentally relied on the offeree's rejection. |
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Termination by Operation of Law
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a. Death or insanity of either party (unless the offer is of a kind the offeror could not terminate, e.g., an option supported by consideration). Death or insanity need not be communicated to the other party;
b. Destruction of the proposed contract's subject matter; or c. Supervening illegality. |
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Acceptance of an Offer
UCC Wrong Goods |
The seller of goods sends the “wrong” goods is Acceptance AND breach (51)
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Acceptance of an Offer
UCC Wrong Goods with Explanation |
Accommodation (Explanation) Exception (52):
if wrong goods sent with an explanation, there is NO K, and NO BREACH, but merely a counter offer |
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Consideration
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1. a bargained for legal detriment
2. It is always person specific; c. Adequacy of Consideration is NOT relevant |
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Consideration
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3. Forms of Consideration
a.Performance: doing something not legally bound to do b.Forbearance: not doing something legally entitled to do 1. i.e. a promise to forbear suit on a claim that the promisor honestly and reasonably believes to be valid (even if claim turns out to be invalid) c.Promise to Perform d.Promise to Forbear |
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Consideration
Moral Consideration/Exception |
4.Moral consideration is insufficient
a.Exception i. where there is a preexisting obligation that is barred by a technical defense (i.e. SOL prevents ability to bring an action), moral consideration will be effective based on the 1. prior obligation 2. and new promise in writing |
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Consideration
Past Consideration |
i. Things that happen BEFORE a promise CANNOT BE consideration for that promise (not bargained for)
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Consideration
Preexisting Contractual or Statutory Duty Rule (Common Law only) |
i. Doing what you are already legally obligated to do is not consideration for a promise to pay you more to do merely that.
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Modifications of K
Common Law |
Requires Additional consideration
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Modifications of K in acceptance
UCC |
Modification does NOT require additional Consideration
Rule: 1.Do not need consideration for modifying sale of goods K’s 2.good faith is test for changes in existing sale of goods (pg. 19, 63) ii.2. Modification Under the U.C.C. 1.Under the U.C.C., consideration is not necessary to a good faith written modification of a contract. |
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Modifications of K in acceptance
UCC |
New Terms will be included UNLESS
1. (i) the additional terms materially alter the contract, 2. (ii) the offer expressly limits acceptance to the terms of the offer, 3. or (iii) the offeror objects within a reasonable time (10 days) iv. Rejection of Additional Terms does NOT terminate the K |
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Part Payment As Consideration for Release
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If Debt Due AND Undisputed
then part payment is NOT consideration for the release and creditor may still collect the rest |
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Part Payment As Consideration for Release
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Not Yet Due OR Disputed
Early payment IS consideration for release |