LAW OF CONTRACT FINAL EXAM Latest Update

LAW OF CONTRACT FINAL EXAM Latest Update -60 Questions with 100% Verified Correct Answers Guaranteed A+ Verified by Professor

"Last Shot" Rule - CORRECT ANSWER: - Under Acceptance, if no contract formed under common law, because of terms of original offer DIFFER from terms of acceptance, contract can still be created, if offeror doesn't reject any of the new terms in the "counter offer", then contract is valid.

"Mirror Image" Rule - CORRECT ANSWER: - Varying acceptance of the affect of ONLY a counter offer, preventing contract from being made on the "original offer"

"The Motive Test": Condition or Consideration? - CORRECT ANSWER: - If a motive of the promisor was to induce the detriment, then there is consideration

• If a motive of the promisor was no more than to state a condition of the promise in

order to make a gift, then there is no consideration

• Bilateral Contracts - CORRECT ANSWER: - Agreement in which both parties make a

promise to eachother.

EX: Buyer promises to pay seller $2000 for their house and seller promises to give the property to the buyer.

• Implied-in-fact- Contracts - CORRECT ANSWER: - There may be an implied promise

based on the parties' conduct. This is a contract that the parties presumably intended, either through an unspoken understanding or an assumption that a contract existed.

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1. Officious Intermeddler (Volunteer) - CORRECT ANSWER: 1. Not all benefits

conferred without a contract will be compensated through a quasi-contract

• The Officious Intermeddler is a volunteer who assists ad benefits another without

contractual responsibility or legal duty to do so, but nevertheless wants compensation for his/her actions

• The courts generally fund that the intermeddler must rely on the equally voluntary

gratitude of the recipient of the alleged benefit.

1) "CONTRACT" FORMATION - CORRECT ANSWER: - A contract is a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. (legally enforceable agreement.)

"Commercial contract": an agreement to purchase a particular good or service.

1) Classic Rule - CORRECT ANSWER: "Plain Meaning" or "Four Corners" rule

-Before considering extrinsic evidence, the "judge must find ambiguous language within the four corners of the contract" without resorting to outside evidence. Merger clause is dispositive.

1) Primary Authority - CORRECT ANSWER: Binding precedent, judges must follow: • Constitution • Statues • Admin. Regulation • Judicial Opinions

• Common Law
• Developed by court decisions
• General Principles are the same throughout the country with some state variation
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ii. Statutory Law: (UCC)

a. Covers the sale of goods (goods: moveable, tangible objects)

• Adopted at least in part by all states (contract law is state law, NOT

2-207(1) - CORRECT ANSWER: - A definite and seasonable expression of acceptance

or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms "additional to" or "different" from those offered or agreed upon, UNLESS acceptance is expressly made condition on assent to the "additional terms" ---> See 2-207(2)

-*Under the UCC a contract is formed despite different terms as long as the other requirements are met.

2-207(2) - CORRECT ANSWER: - Where "Additional terms" become a part of the

contract between merchants UNLESS:

• the offer expressly limits acceptance to the terms of the offer

• they materially alter it; OR

• notification of objection to them has already been given or is given WITHOUT a

reasonable time, after they are made known by the offeree.

*IF B, then terms are not part of the contract)

UNLESS the original offer expressly says that "any additional terms have to be seperately agreed on, then any written conformation or expression of acceptance, operates as the acceptance EVEN with the additional terms.

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2-207(3) - CORRECT ANSWER: - Offeree's terms are so inconsistent with Offeror's

terms, such that no contract has been formed.

• Offeror's conduct (how they act) recognizes the existence of a contract.

• So that ONLY the terms that they BOTH AGREE ON are in the contract (Conflicting

terms "Knocked Out").

• Conduct by both parties which recognizes the existence of a contract is sufficient to

establish a contract for sale although the writings of the parties do not otherwise establish a contract.

• Gratuitous Benefit - CORRECT ANSWER: - A gift given without the expectation of

compensation may not be withdrawn

• Implied-in-Law- Contracts - CORRECT ANSWER: - A contractual obligation imposed

by law because of the parties' conduct or some special relationship between the parties, or because one party would be otherwise unjustly enriched.

2. Unilateral Contract - CORRECT ANSWER: - Only 1 party makes a promise and the

other party relies on performance to fulfill the contract.

EX: A will pay B $20 if B finds A's dog. b IS NOT OBLIGATED to find A's dog, but if B does, A will pay B. *Finding the dog is a "condition precedent" to A's obligation to pay.

• Offeree accepts uni-lateral contract by "performing the condition" and their

performance is treated as consideration for the offeror's promise.

2) CONTRACT INTERPRETATION - CORRECT ANSWER: - When addressing contract

interpretation, that means we are under the impression that a contract has already been formed.

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