Exam 10: Contracts

In Japan, more specific details of a contract are usually negotiated before a contract is signed than would be the case in the U.S.

The Statute of Frauds requires that all contracts for the sale of property must be proven by written evidence signed by the defendant.

The parol evidence rule allows oral testimony to help the court clarify terms of a vague contract.

In DeRosier v. Utility Systems, where DeRosier had more dirt dumped on his property than he wanted, the appeals court held that DeRosier could not collect damages for delay in constructing a new house.

The doctrine that prevents an injustice due to the promisee's reasonable reliance on the promisor's promise is:

Advertisements that state prices are usually not considered binding offers.

If a contract is made under duress or undue influence, it may be disaffirmed because there was no real consent.

The Restatement (2d) of Contracts defines a promise as:

Elements of a contract include all of the following except:

If someone decides to accept less than full payment to settle a debt, there is an accord and satisfaction.

If, during a contract, a party incurs "extreme or unreasonable difficulty, expense, injury or loss" the courts may hold that what applies:

The Statute of Frauds applies to the sale of all vehicles.

A rescission occurs when the parties to a contract agree that it will be terminated without performance.

Option contracts are binding promises to keep a specific offer open to a specific party for, say, one month.

When the payment of money damages is inadequate for a breach of contract a court may order the remedy of:

Consideration is something of value in exchange for a promise.

Fact Pattern 10-1 Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie. Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased. Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit. Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney. -Refer to Fact Pattern 10-1. Lulene and Ellen's contract may best be described as:

Contracts created by intoxicated persons, or persons under the influence of drugs, are always voidable at their option.

In general, courts prefer to give equitable remedies instead of damages in case of breach of contract.

An accord is an agreement by the parties to offer and accept some performance different from that originally bargained for. The actual performance of the new obligation is: