Material
Contract Formation - correct answer ✔✔ offer, acceptance, consideration
offer - correct answer ✔✔ outward manifestation of intent to enter into a K
need intent & specific terms
How to Terminate an offer - correct answer ✔✔ death
lapse of time
rejection
counteroffer
revocation
Option K - correct answer ✔✔ promise to keep offer open & need additional consideration
UCC Firm Offer - correct answer ✔✔ 1) offer by MERCHANTS and 2) signed by merchant
no time stated then open for MAX of 3 months
Unilateral - correct answer ✔✔ promise for an act
pay you 500 if you wash my house
moment you begin performance, becomes irreovocable
bilateral - correct answer ✔✔ promise for a promise
,Common Law Mirror Image rule - correct answer ✔✔ acceptance must mirror the offer
-silence
-performance
common law mailbox rule - correct answer ✔✔ acceptance is effective when SENT but if a
rejection is sent first and then an acceptance is sen whichever arrives first wins
UCC Acceptance - correct answer ✔✔ construed liberallly except if there is material change in
terms of K, and objection to the change of a term.
consideration - correct answer ✔✔ bargained for exchange ; not valid consideration is illusory
promise or past or moral consideration.
Exceptions ar promise to pay debt barred by SOL, barred by bankruptcy, promise not to sue,
detrimental reliance
Accord and Satisfaction - correct answer ✔✔ if check marked paid in full, and dont dispute it,
even if mark paid in full owe full amount. Needs to be in dispute
Defenses to the Enforceability of a Contract - correct answer ✔✔ Age= voidable
mental illness=void
duress=wrongful threat
undue influence= uneven bargaining position
illegal=unenforceable
unilateral mistake= generally not defense unless 1) other party knew of mistake 2) clerical error
mutual mistake= both parties mistakes and can rescind
,Intentional misrepresnetation= knew or shouldve known of falisity with intent to induce
reliance
negligence misrepresentation= causes innocent party to determinentaly rely
non-compete clauses= reasonable under the circumstances (how long and where)
Statute of Frauds - correct answer ✔✔ certain contracts must be in writing Marriage, K cant be
performed within one year, land, executor, guarantor, and sale of goods more than 500 or more
SOF: Part Performance land Exception - correct answer ✔✔ 2 out of the 3: 1) some payment 2)
possession of land 3) valuable improvements
SOF:
Guarantees/ Suretyship exception - correct answer ✔✔ if self serving, K does not need to be in
writing
SOF Sale of Goods of 500 or more exception - correct answer ✔✔ 1) partial performance takes
it out AND
2) for merchants if confirmation signed by sender, 2) with the quantitiy and 3) no written
objection w/in 10 days
Elements needed for valid SOF contact - correct answer ✔✔ 1) parties 2) subject terms 3)
material terms 4) signed by party to be charged
Parol Evidence - correct answer ✔✔ going to court to add more terms to the K, but must be
terms dicussed prior to or at time entered into the K
Complete Integration or merger clause= final agreement between the parties & NO parol
evidence except to clear up an ambiguity
, Partial Integration= parol evidence is admissible to explain or supplement, but CANT contradict
parol evidence is admissible to show even in FINAL integration - correct answer ✔✔ fraud
durress
mistake
condition precedent
course of dealing
trade custom
Risk of Loss - correct answer ✔✔ Non-carrier case= seller merchant then risk is on seller until
possession. Non-merchant= goods tendered to buyer
Shipment= shifts when delivered to UPS (default) FOB seller
Destination= shifts when delivered to Warehouse FOB anything else
Requirements K - correct answer ✔✔ UCC K agreement to buy or sell everything that one party
will need
need GOOD FAITH
mutual modification - correct answer ✔✔ - Both parties agree to modify the original terms
- "Fair and reasonable under circumstances"
conditions excused - correct answer ✔✔ bad faith
waiver