Contracts 2

Each party to a contract must get something to which that party was not legally entitled before entering the contract, and each party must give something to which that party was legally entitled before the contract.

An illusion; stated consideration does not really obligate the party.

Stated consideration did not really occur

Event that must occur before the contemplated transaction is completed.

Event that may "undo" an executed contract

Contract under which buyer agrees to purchase all of buyer's needs from seller.

Contract under which parties agree to deal only with each other with respect to particular needs.

Agreement to accept and give payment or performance, different from that originally required by contract.

Mutual agreement to cancel.

Debt that is not in dispute

Causes payments to become immediately due upon the happening of stated event

Remainder of agreement can be enforced without unenforceable provision contained in agreement.

The parties are equally at fault

Inherently bad

A clause that permits immediate entry of judgment without notice or opportunity to present defenses

Prohibits certain transactions on Sundays

Provision that attempts to excuse a party from liability for that party's tort

Relationship where parties have equal power to negotiate terms

One party agrees to compensate the other for losses arising from the contract

Provision under which party agrees to refrain from engaging in specified business activities

A person who has not reached adult status

Things indespensable to life.

Minor is no longer under care/control of an adult

Return of, restoration of, or compensation for

Make a contract void

To acknowledge or validate a contract after its execution

Mental incompetence determined by inability to understand the nature and consequences of a transaction

Mental incompetence shown by inability to act reasonably with respect to a transaction

Court has declared person incompetent

Court appointed person to advocate in best interest of child in litigation

Attempt to limit or excuse liability

One who participates jointly in borrowing

Agreement used in connection with software licenses.

Party attempting to avoid contract liability

M
Y
L
E
G
S

Agent has a financial stake in the transaction

A transfer of property or rights

New party takes over an obligation - involves a new contract

Assignment of obligations

One who acts on behalf of another

A third-party beneficiary, no intended to benefit from contract, does not acquire rights under contract.

Co-obligors can be sued together or any one can be liable for the entire obligation

To Register or record and instrument so that the public is on notice of its terms

Being a party to the contract

Agent has a financial stake in the transaction

Belief that other party will not perform

Contract provision excusing performance for an 'act of God'

Any performance delay constitutes breach

Limit or reduce damages

Contract has no remaining value for party because of an unanticipated event

Interchangeable

Unable to pay debts

An arrangement under which goods are placed for sale but title does not transfer to the seller

A party's words or actions indicating intention not to perform the contract

No deviations from contract expectations; also called perfect performance.

Damages agreed to in advance of breach, in the contract itself.

That which a reasonable person would anticipate

An attempt to reduce the harm

A neutral hears both positions and imposes a decision

Award of money; also called damages

Award that is non-monetary and involves court orders

Damages intended to put non-breaching parties in the position they would have occupied if the contract had been fully performed

Losses that do not flow directly and immediately from an injurious act

Puts party in position that would been occupied if the contract had not been made.

Recovery of property from one who is wrongfully in possession

Parties give up the right to challenge arbitration result in court.

The Difference between a bilateral and unilateral contract is the number of promises exchanged by parties. T/F
True False

A contract generally is enforceable when there is a valid offer, there is a valid acceptance, and the agreement is supported by mutuality of assent. T/F
True False

Alan promises to perform a service to Baker, in exchange for which Baker promises to file his (Alan) incom tax return on April 15, Alan is not bound. T/F
True False

Alan agrees to buy all the widgets that Baker can supply, provided that Alan is satisfied with the quality of the widgets. Alan's promise is not enforceable because it is illusory. T/F
True False

In general, the UCC requires contracts for the sale of goods valued in excess of $250 to be in writing to be enforceable. T/F
True False

When parties agree to substitute one party's performance for another's, an accord and satisfaction occurs. T/F
True False

Parole evidence rules apply to matters related to the meaning of contract terms, both before and after the creation of the contract. T/F
True False

When one leaves clothing with a retail laundry, a master-servant contract is created. T/F
True False

Boarding a bus and putting money in the slot without saying anything is a type of quasi- contract. T/F
True False

Assumpsit

One who wishes to tranfer his rights under a valid contract should execute a(n)
A. option
B. delegation
C. assignment
D. conveyance

The document used to transfer legal ownership of personal property from one person to another when a title document is not required is a(n)
A. conveyance transfer
B. power of attorney
C. bill of sale
D. invoice purchase

Nudum Pactum