LEGL 2700 ROESSING EXAM 2 QUESTIONS AND

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LEGL 2700 ROESSING EXAM 2 QUESTIONS AND

CORRECT DETAILED ANSWERS |ALREADY

GRADED A+

A contractual arrangement under which one party has for a specified time the right to buy certain property from or sell certain property to the other party Essentially a contract to not revoke an offer - ANSWER>>Option

Court enforcement of an otherwise unbinding promise if injustice can be avoided only by enforcement of the promise Substitute for consideration - ANSWER>>Promissory Estoppel

Mental ability to make a rational decision that includes the ability to perceive and appreciate all relevant facts Required element of a contract - ANSWER>>Capacity

An agreement in which one party agrees not to compete directly with the business of the other party; may be limited by geography or length of time - ANSWER>>Covenants Not to Compete

A false representation of fact made with the intent to deceive another that is justifiably relied upon to the injury of that person - ANSWER>>Fraud

An untrue manifestation of fact by word or conduct; may be unintentional - ANSWER>>Misrepresentation

A situation in which parties to a contract reach a bargain on the basis of an incorrect assumption common to both parties - ANSWER>>Mutual Mistake

A contractual remedy that cancels the agreement and returns the consideration exchanged to each party - ANSWER>>Rescission

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2 Arises when only one of the parties to a contract is wrong about a material fact Not usually a basis for rescinding a contract - ANSWER>>Unilateral Mistake

Being under threat of physical harm or illegal economic harm A recognized defense to any act that must be voluntary in order to create liability in the actor - ANSWER>>Duress

A defense to contract enforcement available when one is taken advantage of unfairly by a party who misuses a position of relationship or legal confidence - ANSWER>>Undue Influence

An exception to the statute of frauds' writing requirement for collateral promises Occurs when the promisor's commitment is primarily intended to serve the promisor's own interests - ANSWER>>Leading Object Rule

• Enforcing implied-in-fact agreements is an important means of ensuring that two parties'

intent to make binding promises is honored

• Implied-in-fact agreements must contain the same elements as express contracts, including

acceptance and consideration

• Employers can weaken the presumption of an at-will employment relationship by making

statements about employee rights and expectation in policies and manuals - ANSWER>>Leyden

• American Accreditation Healthcare Commission (2015)

• The court found that Gottlieb's term (consequential damages limitation) was included in the

contract even though it appeared only on Gottlieb's forms and was not specifically discussed by the parties

• Alps' failure to read Gottlieb's forms was irrelevant, according to the court. This is generally

true as a contract law principle

• If Alps foresaw the likelihood of certain outcomes, such as consequential damages from

customer complaints, it should have addressed it with Gottlieb - ANSWER>>Gottlieb & Co., Inc.

• Alps South Corporation (2007)
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• Contracts require consideration for both promises. Care must be taken in limiting one's

obligations, particularly if the result is no legal detriment at all

• The amount of consideration is generally not an issue, but it must be more substantial than

simply an acknowledgement or statement - ANSWER>>Vassilkovska v. Woodfield Nissan, Inc.

(2005)

When a written contract exists, it is very strong evidence Excludes the introduction of evidence of prior written or oral agreements that may vary, contradict, alter, or supplement the present written agreement

Exception example:

• When the parties to an agreement do not intend for that agreement to be final and complete,

then parol evidence is admissible - ANSWER>>Parol Evidence Rule

Legal obligation of a party to a contract - ANSWER>>Duty of Performance

Act that forgives further performance of a contractual obligation - ANSWER>>Discharge

Event that must occur before a duty of immediate performance of the promise arises Contracts often provide that one party must perform before there is a right to performance by the other party Ex) Completion of a job is needed for payment for that job. One contracting party's failure to perform this permits the other party to refuse to perform, cancel the contract, and sue for damages. - ANSWER>>Condition Precedent

A fact that will extinguish a duty to make compensation for breach of contract after the breach has occurred - ANSWER>>Condition Subsequent

Conditions that are explicitly set out in a contract - ANSWER>>Express Conditions

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