KELLEY SCHOOL OF BUSINESS (MCCRORY) - L201 EXAM 2
CORRECT ANSWERS
Define ccontract c- cCORRECT cANS✔✔a clegally cenforceable cpromise cor cset cof cpromises
3 celements cof ca cK c- cCORRECT cANS✔✔Offer, cAcceptance, cConsideration
Unilateral cK? c- cCORRECT cANS✔✔one cparty cpromises cto cdo csomething cin creturn cfor can cact c
cfor cperformance). cUnlike cBilateral, cin ca cunilateral cK cthe cofferee's cpromise cto cperform cis cinsuf
cacceptance; cthe cofferee cmust cperform cthe cact cto caccept cthe coffer
Ex: cFrequent cBuyer cCard> cpromise cto cgive cthe c5th ccup cof ccoffee cfree
Ex: cRewards cads c(Find cdog cfor c$100)
Bilateral cK c- cCORRECT cANS✔✔promise cfor ca cpromise c
Ex: cCoffee cshop crents ckiosk cfrom cmall cfor c$1,000/month cif cthey cpromise cto clease cthem ca ckio
A ccontract cmust cbe c___ cto cbe clegally cenforceable. c- cCORRECT cANS✔✔VALID
Voidable cK c- cCORRECT cANS✔✔Harmed cparties chave cthe clegal cright cto ccancel ctheir cobligatio
Executory cK c- cCORRECT cANS✔✔Not call cduties chave cbeen cfulfilled.
2 cbodies cof cgoverning claw cfor cKs? c- cCORRECT cANS✔✔UCC cand cCommon cLaw cof cContract
Article c2 cof cthe cUCC capplies cto? c- cCORRECT cANS✔✔The csale cof cgoods cONLY- cnot creal ces
Protocol cfor c"hybrid" ccontracts? c- cCORRECT cANS✔✔Whichever cpredominates.
, Executed cK c- cCORRECT cANS✔✔All cduties chave cbeen cfulfilled c(pertains cto cimmediate cduties c
Partially cexecutory cK c- cCORRECT cANS✔✔Not call cthe cduties chave cbeen cfulfilled, cbut csome ch
Expressed cK c- cCORRECT cANS✔✔Terms care cexplicitly cstated.
Implied cK c- cCORRECT cANS✔✔The ccontract cis cimplied.
(Ex: cgoing cto cthe cdentist> cIt cis cimplied cyou cwill cpay)
Basic celements cof ca cquasi ccontract/Quantum cMeruit/Unjust cEnrichment? c- cCORRECT cANS✔✔
cis cconsidered cunjust cor cunfair cunless cyou cpay cfor cit cor cgive cit cback
(ex: cpainter cgoes cto cthe cwrong chouse cand cthe cowner cdoesn't csay canything c> cpainter ccan crec
2) cKnowingly cReceived
3) cEquity c- cunjust/unfair
Basic celements cof ca cpromissory cestoppel? c- cCORRECT cANS✔✔1) cPromise
2) cAct
(What cdid che/she cdo cbecause cof cthe cpromise? cex: cbought ca cdress, cetc.) c
*OR*
Forbearance c
(what cdidn't che/she cdo cbecause cof cthe cpromise? cex: cstop csmoking)
3) cEquity- cunjust/unfair cunless csomething cis cpaid cin creturn c
(ex: ccouple cdating cfor ca cfew cyears, che ctells cher che cis ctaking cher cto cthe cprom, cshe cbuys ca cd
cand ctakes csomeone celse. cShe cgets cpaid. cWhy> cbecause cit's conly cfair)
Offeror cvs. cOfferee c- cCORRECT cANS✔✔Offeror- cParty cmaking coffer
*power cto cmake can coffer
*power cto crevoke can coffer
Offeree- cParty cto cwhom cthe coffer cis cmade c=> ccan caccept, creject, cor ccounteroffer c(seen cas cre
*power cto caccept coffer
*power cto creject coffer
3 cbasic celements cof can coffer c- cCORRECT cANS✔✔1) cIntent c- ca cmanifestation cof ca cwillingnes
cbased con cthe cterms cstated cby cthe cofferor. c
2) cSpecificity/Definiteness c- cthe cmore cdetailed cthe ccontract cis, cthe cmore cenforceable cit cis. c
3) cCommunication- cAlleged coffer chas cbeen ccommunicated cto cthe cofferee.
Domingo cvs cMitchell cCase c- cCORRECT cANS✔✔*2 ccoworkers chave coften cgambled ctogether ci
>Mitchell csaid cshe cwould ccover cDomingo's cfee cto cthe cgroup cthat cwas cgambling ctogether
>Someone cin cthe cgroup cwon c$21M
>Domingo cwas cexcluded cfrom cfunds, cso cDomingo csued cMitchell cfor cbreach cof ccontract
>Court cgranted cSummary cJudgement c(Rule c56- cdisposes cof ccases cbefore ctrial, c"no cgenuine ci
>Judgement cwas creversed cand cwent cto ctrial ccourt
CORRECT ANSWERS
Define ccontract c- cCORRECT cANS✔✔a clegally cenforceable cpromise cor cset cof cpromises
3 celements cof ca cK c- cCORRECT cANS✔✔Offer, cAcceptance, cConsideration
Unilateral cK? c- cCORRECT cANS✔✔one cparty cpromises cto cdo csomething cin creturn cfor can cact c
cfor cperformance). cUnlike cBilateral, cin ca cunilateral cK cthe cofferee's cpromise cto cperform cis cinsuf
cacceptance; cthe cofferee cmust cperform cthe cact cto caccept cthe coffer
Ex: cFrequent cBuyer cCard> cpromise cto cgive cthe c5th ccup cof ccoffee cfree
Ex: cRewards cads c(Find cdog cfor c$100)
Bilateral cK c- cCORRECT cANS✔✔promise cfor ca cpromise c
Ex: cCoffee cshop crents ckiosk cfrom cmall cfor c$1,000/month cif cthey cpromise cto clease cthem ca ckio
A ccontract cmust cbe c___ cto cbe clegally cenforceable. c- cCORRECT cANS✔✔VALID
Voidable cK c- cCORRECT cANS✔✔Harmed cparties chave cthe clegal cright cto ccancel ctheir cobligatio
Executory cK c- cCORRECT cANS✔✔Not call cduties chave cbeen cfulfilled.
2 cbodies cof cgoverning claw cfor cKs? c- cCORRECT cANS✔✔UCC cand cCommon cLaw cof cContract
Article c2 cof cthe cUCC capplies cto? c- cCORRECT cANS✔✔The csale cof cgoods cONLY- cnot creal ces
Protocol cfor c"hybrid" ccontracts? c- cCORRECT cANS✔✔Whichever cpredominates.
, Executed cK c- cCORRECT cANS✔✔All cduties chave cbeen cfulfilled c(pertains cto cimmediate cduties c
Partially cexecutory cK c- cCORRECT cANS✔✔Not call cthe cduties chave cbeen cfulfilled, cbut csome ch
Expressed cK c- cCORRECT cANS✔✔Terms care cexplicitly cstated.
Implied cK c- cCORRECT cANS✔✔The ccontract cis cimplied.
(Ex: cgoing cto cthe cdentist> cIt cis cimplied cyou cwill cpay)
Basic celements cof ca cquasi ccontract/Quantum cMeruit/Unjust cEnrichment? c- cCORRECT cANS✔✔
cis cconsidered cunjust cor cunfair cunless cyou cpay cfor cit cor cgive cit cback
(ex: cpainter cgoes cto cthe cwrong chouse cand cthe cowner cdoesn't csay canything c> cpainter ccan crec
2) cKnowingly cReceived
3) cEquity c- cunjust/unfair
Basic celements cof ca cpromissory cestoppel? c- cCORRECT cANS✔✔1) cPromise
2) cAct
(What cdid che/she cdo cbecause cof cthe cpromise? cex: cbought ca cdress, cetc.) c
*OR*
Forbearance c
(what cdidn't che/she cdo cbecause cof cthe cpromise? cex: cstop csmoking)
3) cEquity- cunjust/unfair cunless csomething cis cpaid cin creturn c
(ex: ccouple cdating cfor ca cfew cyears, che ctells cher che cis ctaking cher cto cthe cprom, cshe cbuys ca cd
cand ctakes csomeone celse. cShe cgets cpaid. cWhy> cbecause cit's conly cfair)
Offeror cvs. cOfferee c- cCORRECT cANS✔✔Offeror- cParty cmaking coffer
*power cto cmake can coffer
*power cto crevoke can coffer
Offeree- cParty cto cwhom cthe coffer cis cmade c=> ccan caccept, creject, cor ccounteroffer c(seen cas cre
*power cto caccept coffer
*power cto creject coffer
3 cbasic celements cof can coffer c- cCORRECT cANS✔✔1) cIntent c- ca cmanifestation cof ca cwillingnes
cbased con cthe cterms cstated cby cthe cofferor. c
2) cSpecificity/Definiteness c- cthe cmore cdetailed cthe ccontract cis, cthe cmore cenforceable cit cis. c
3) cCommunication- cAlleged coffer chas cbeen ccommunicated cto cthe cofferee.
Domingo cvs cMitchell cCase c- cCORRECT cANS✔✔*2 ccoworkers chave coften cgambled ctogether ci
>Mitchell csaid cshe cwould ccover cDomingo's cfee cto cthe cgroup cthat cwas cgambling ctogether
>Someone cin cthe cgroup cwon c$21M
>Domingo cwas cexcluded cfrom cfunds, cso cDomingo csued cMitchell cfor cbreach cof ccontract
>Court cgranted cSummary cJudgement c(Rule c56- cdisposes cof ccases cbefore ctrial, c"no cgenuine ci
>Judgement cwas creversed cand cwent cto ctrial ccourt
