Midterm Material Flashcards

1
Q

True or False:

UCC governs personal service contracts.

A

False

Common Law governs personal service and real estate

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2
Q

Intent to be bound is shown through ______ judged by ______ with a ________ of such intent to be bound.

A

Conduct

Reasonable person standard

manifestation

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3
Q

Under common law Bilateral contract, the offer and acceptance must ______ each other in terms. Or else a _____ may be created instead of an acceptance.

A

mirror

counter offer

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4
Q

A Bilateral contract creates ______ of obligation.

A

Mutuality

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5
Q

An enforceable contract under common law requires _____, _____, and _______.

A

offer
acceptance
consideration

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6
Q

The 3 elements of an offer under common law section 24 of restatement is:

A
  1. Manifestation of offer (communication)
  2. Essential terms present (certain and definite)
  3. Intent to be Bound (words and actions)
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7
Q

An offer under common law includes -_____ of assent, with intent to be ______, so made as to indicate ___________.

A

manifestation

bound

the negotiation is concluded if accepted.

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8
Q

When an offer is made it creates the power of acceptance in the ______.

A

offeree

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9
Q

Test for Offer:

  1. Was there an expression of a _____?
  2. ______ in terms?
  3. _____ of 1 and 2 to offeree?
A

promise

certainty and definiteness

Communication

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10
Q

What are the 6 ways to terminate an offer that is still revocable?

A
  1. Rejection
  2. Counter-offer made
  3. Lapse
  4. Revocation
  5. Death or Incapacity
  6. Non-compliance with conditions of acceptance
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11
Q

True or False:

The offeror is required to communicate the revocation of the offer to the offeree in a bilateral contract.

A

True

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12
Q

What are the 4 ways an offer can not be freely revoked?

A
  1. Option Contract
  2. Detrimental Reliance
  3. Merchant Firm Offer(UCC)
  4. Performance has begun
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13
Q

For an Advertisement to become an offer, there must be what 4 things?

A
  1. Intent to be bound
  2. call for action without further negotiation
  3. all essential terms
  4. NO POSSIBILITY OF OVER-ACCEPTANCE
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14
Q

In a bilateral contract a counter-offer will carry over the terms from the original offer when the original offer included a timeline for acceptance. True or False?

A

False! the counter offer is a rejection of the offer and removed the power of acceptance once rejected.
(see Normile v. Miller - house buying counter offer)

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15
Q

Under common law what terms MUST be present in real estate to form a contract?

A

price and location

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16
Q

Under UCC what must be present for a contract for sale of a good ?

A

Quantity (price can be determined later, i.e. time of delivery)

17
Q

Under the common law can the right of acceptance be assigned to another?

A

NO

18
Q

What are the 3 elements of acceptance under common law?

A
  1. Unqualified manifestation of assent
  2. Reasonable time
  3. Effective upon dispatch unless prescribed otherwise
19
Q

If the Offeror does not prescribe a manner of acceptance, the mail box rule applies under common law where dispatch rules time of acceptance except in what situation?

A

Option contract exists- acceptance does not occur until the Offeror RECEIVES the acceptance

20
Q

Is the mail box rule applicable under UCC?

A

NO - only under common law contracts

21
Q

Consideration in a bilateral contract is considered a _______-____ exchange where the _______ induces the detriment and vice versa.

A

bargained-for

promise (induces the detriment)

22
Q

If the consideration is ______ _______ AND _____then the court will look at the value to determine if consideration is void.

A

Grossly inadequate

Unfair - one party has clear advantage

23
Q

In an offer to the public, reward offer, only the performance requested in offer will manifest acceptance at time of ______. Example: delivery of missing dog.

A

completion

24
Q

Agreement to Agree is when a term is missing and the parties have agreed upon a ______ ______ to later determine a term (price in sale of goods, etc.). This method must have _____ and ______.

A

Prescribed Method

certainty and definiteness

25
Q

A letter of intent can be considered a _____ contract _______.

A

formal contract contemplated

26
Q

To make a letter of intent binding, what must it contain to prevent it from being void:

A
  1. essential terms
  2. EXPRESS intent to be bound
  3. no ambiguity (no ROR section on termination)
27
Q

Consideration in a bilateral contract must have reciprocal _______ of promise to _____ and vice versa.

A

reciprocal inducement

detriment

28
Q

If a court thinks the consideration is grossly inadequate, then they likely will review MORE Facts and assume it was _______.

A

Never bargained for - only ever a gift.

29
Q

True or False:

There needs to be actual bargaining in the bargained for exchange consideration test.

A

False - bargaining can be implied

30
Q

A gratuitous gift transaction can include a ______ to a gift that appears like consideration but is not a true detriment to promisee and benefit to promisor.

A

Condition

31
Q

What are 3 valid types of Consideration?

A
  1. Bargained-For Exchange/Benefit detriment test
  2. Promise for Future Act with benefit to promisor and act by promisee
  3. Forebearance - giving up an otherwise legal activity
32
Q

What are not valid types of consideration?

A
  1. Gratuitous gift
  2. condition to a gift
  3. Recital of Value
  4. PAST CONSIDERATION
  5. ILLUSORY PROMISE