MULTISTATE BAR CONTRACTS EXAM 2024, Exams of Nursing

Download MULTISTATE BAR CONTRACTS EXAM 2024 and more Exams Nursing in PDF only on Docsity! MULTISTATE BAR CONTRACTS EXAM 2024 What is required for a binding contract? - correct answer✔✔ A binding contract requires: (1) manifestation of mutual assent, (2) consideration, and (3) lack of valid defenses. Define Offer. - correct answer✔✔ An objective manifestation of a willingness by the offeror to enter into an agreement that creates power of acceptance in the offeree. When is a statement an offer? - correct answer✔✔ When: (1) the person to whom the statement is communicated could reasonably interpret it as an offer and (2) the statement expresses present intent of a person to be legally bound by the contract. The offeree must ___ of the offer in order to have the power to accept. - correct answer✔✔ Know The terms must be _____ and ______, or the contract fails for indefiniteness. - correct answer✔✔ Certain and definite Under Common law, what are the essential terms that must be covered in the contract? - correct answer✔✔ (1) parties, (2) subject matter, (3) price, and (4) quantity Under the UCC, what are the essential terms that must be covered in the contract? - correct answer✔✔ Quantity Under the UCC, what are the two exceptions to the requirement of including quantity in the contract? - correct answer✔✔ Requirement contracts and output contracts Advertisements are generally only ________ but may qualify as an offer if __________. - correct answer✔✔ Invitations to deal; Sufficiently specific and limits who can accept or if associated with a stated reward. What are the five ways to terminate an offer (prior to acceptance)? - correct answer✔✔ (1) Lapse of time, (2) Death/incapacity, (3) Destruction/illegality, (4) Rejection, (5) Revocation When does an offer terminate/lapse? - correct answer✔✔ A reasonable period of time UNLESS a specific timeframe is stated in the offer. What is the rule regarding termination of an offer in instances of death or incapacity of the offeror? - correct answer✔✔ If the offeror dies, the offer terminates even if the offeree does not learn of the offeror's death until after the offeree has sent what they believe is an acceptance. EXCEPTION: Offers for option contracts do not terminate because consideration was paid to keep the offer open. When does a rejection terminate an offer? - correct answer✔✔ If the offeree clearly conveys to the offeror that they no longer intend to accept the offer, the offer is rejected. When is rejection via mail effective? - correct answer✔✔ Upon receipt When can an offer be revoked by the offeror? - correct answer✔✔ Any time prior to acceptance by the offeree. Revocation is not effective until _________. - correct answer✔✔ Communicated When is a revocation via mail effective? - correct answer✔✔ Upon receipt What are four categories/types of irrevocable offers? - correct answer✔✔ (1) Option contracts, (2) Firm offers, (3) Promissory estoppel, (4) Partial performance Define Option Contract. - correct answer✔✔ An option is an independent promise to keep an offer open for a specified period of time. What is the effect of an option contract? - correct answer✔✔ Promise to keep the contract open limits the offeror's power to revoke the offer until the period has expired, while also preserving the offeree's power to accept. What is the common law rule on acceptance/counteroffers? - correct answer✔✔ Acceptance must mirror the terms of the offer so any change or addition to the terms acts as a rejection and new counteroffer. What is the general UCC rule on acceptance/counteroffers? - correct answer✔✔ Acceptance containing additional or different terms is generally treated as acceptance; What terms are a part of the contract depends on whether one or both parties are merchants. Under the UCC, what is the rule of acceptance when one or more parties are NOT merchants? - correct answer✔✔ A definite and seasonable expression of acceptance sent within a reasonable rime is usually acceptance of original offer. Under the UCC rule of acceptance. what is the effect of additional or different terms when one or more parties are NOT merchants? - correct answer✔✔ Additional or different terms are treated as proposals which must be separately accepted. Under the UCC, what is the rule of acceptance concerning additional terms when both parties are merchants? - correct answer✔✔ Additional terms are automatically included unless: (1) Term materially alters original contract; (2) Offer expressly limits acceptance to terms of the offer; or (3) Offeror objects to new terms within a reasonable time after notice of new terms is received .... then original term of the offer controls Under the UCC, what is the rule of acceptance concerning different terms when both parties are merchants? - correct answer✔✔ Different terms nullify one another and UCC gap fillers are used to patch any holes in the contract. Under the UCC, what is the rule of acceptance based on conduct? - correct answer✔✔ If the offer and acceptance differ too much to create a contract, but performance begins anyway, then UCC allows for a contact to be recognized with (1) any terms actually agreed upon in the parties' writing, and (2) any supplementary terms filled in by the UCC. Describe sufficient consideration. - correct answer✔✔ There must be: (1) a bargained for exchange for the promise, (2) promise must induce the detriment, and (3) the detriment must induce the promise When does a gift have sufficient consideration? - correct answer✔✔ When the offeree can reasonably believe offeror's intent was to induce an action. When is a promise enforceable under promissory estoppel? - correct answer✔✔ If promise/donor knows that promise to make a gift will induce substantial reliance by promise and failure to enforce it would cause substantial injustice. Under common law, describe the preexisting duty rule. - correct answer✔✔ A preexisting duty does not qualify as consideration unless promisor gives something in addition to what is owed or varies the preexisting duty in some way. Describe the third party exception to the preexisting duty rule. - correct answer✔✔ Party's promise to a third party to perform an act the party is contractually obligated to perform for another is sufficient consideration. What are the requirements for a contract modification under common law? - correct answer✔✔ Agreement to modify the contract is enforceable if: (1) Existing contract is replaced (rescinded) by new contract; (2) Unanticipated difficulties arise, and modification is fair and equitable; or (3) New obligations arise on both sides. What is the requirement for modification under the UCC? - correct answer✔✔ Good faith (no additional consideration necessary) Describe an accord. - correct answer✔✔ When one party agrees to accept a different performance from the other party to satisfy the other party's existing duty. Describe a satisfaction - correct answer✔✔ Performance of the accord agreement which discharges both the original contract and the accord contract. Under an accord contract, when is the original contract discharged? - correct answer✔✔ When satisfaction is complete Under an accord contract, how are unliquidated and dispute claims discharged? - correct answer✔✔ Negotiable instrument What is an illusory promise? - correct answer✔✔ A non legally binding promise due to being vague. The promisor can choose whether or not to honor the promise. Do requirement and output contracts have consideration? - correct answer✔✔ Yes, there is consideration because the promisor suffers a legal detriment. However, quantities may not be unreasonably disproportionate to estimates. A promise not to assert or to release a claim or defense is ____ consideration, unless: - correct answer✔✔ Not; The claim or defense is doubtful or the party promising not to assert or to release the claim believes in good faith that is valid. What are four categories where a contract is binding and enforceable without consideration? - correct answer✔✔ (1) To pay a debt barred by statute of limitation - new promise to pay debt after SOL has run, (2) To perform a voidable duty (enforceable if it doesn't suffer from an infirmity rendering it voidable), (3) Material Benefit Rule: When a party performs an unrequested service for another party who reaps the benefit of that service, (4) Promissory estoppel. When is promissory estoppel binding? - correct answer✔✔ When: (1) Promisor should reasonably expect it to induce action on the part of the promise or a third person, (2) Promise does include such action; and (3) Injustice is only avoidable by enforcement of promise. A defense to formation or a defense to enforcement may render a contract ____, ______, or _______. - correct answer✔✔ Void, voidable, or unenforceable What is the effect of void contracts? - correct answer✔✔ Entire transaction is null as if the contract never existed. What is the effect of a voidable contract? - correct answer✔✔ Operates as a valid contract until or unless one party takes steps to avoid it What is the effect of an unenforceable contract? - correct answer✔✔ Valid contact that cannot be enforced if one party refuses to carry out its terms. Define Nondisclosure. - correct answer✔✔ Conduct to conceal a fact or nondisclosure of known fact is equivalent to an assertion that the fact does not exist. Define Undue Influence. - correct answer✔✔ Unfair persuasion of a party to assent to a contract. What are the damages for undue influence? - correct answer✔✔ Restitution Define Duress. - correct answer✔✔ Improper threat that deprives a party of a meaningful choice What is the effect of a contract formed under duress? - correct answer✔✔ Contract is void when duress is through physical compulsion and voidable in other instances If a child is party to a contract and doesn't have the capacity to contract, what it the effect? - correct answer✔✔ The contract is voidable by the child but not by the adult If a mentally impaired person is party to a contract and doesn't have the capacity to contract, what it the effect? - correct answer✔✔ Contract is void for the party adjudicated mentally incompetent but only voidable if there has been no adjudication. If a person under a guardianship is party to a contract and doesn't have the capacity to contract, what it the effect? - correct answer✔✔ Contract is void for individuals under guardianship If a party is intoxicated at the time of contract formation, what it the effect? - correct answer✔✔ Contract is voidable by intoxicated party if they were unable to understand the nature/consequences of contract and other party knew of intoxication. What are the three contract defenses to enforcement? - correct answer✔✔ (1) Illegality, (2) Unconscionability, (3) Public policy What is the effect of an illegal contract? - correct answer✔✔ (1) Contract is unenforceable if consideration/performance under contract is illegal, (2) Contract is void if it contemplates illegal conduct. (3) Duty to perform is discharged if contract because illegal after formation What are the five exceptions to the enforceability of illegal contracts? - correct answer✔✔ (1) Ignorance of illegality, (2) Lack of illegal purpose, (3) Divisible contracts, (4) Licensing violations, (5) Restitution Explain the illegality exception, ignorance of illegality. - correct answer✔✔ A party may recover if the party is justifiably ignorant of the facts making contract illegal and the other party had knowledge of the illegality Explain the illegality exception, lack of illegal purpose. - correct answer✔✔ A party who has substantially performed may recover if: (1) Contract does not involve illegal consideration/performance and the party is unaware of the other party's illegal purpose; (2) The party knows of the other party's illegal use unless the party furthered the illegal use, or the use involves grave social harm. Explain the illegality exception, divisible contracts. - correct answer✔✔ If the contract can easily be divided into legal and illegal parts, a party may recover on the legal parts of the contract. Explain the illegality exception, licensing violations. - correct answer✔✔ Regulatory purpose: the party who fails to comply cannot enforce the contract; Raise revenue: the party who fails to comply can enforce the contract. Explain the illegality exception, restitution. - correct answer✔✔ When parties are not equally at fault, the less guilty party may recover under restitution; If a party withdraws from an illegal contract before the improper purpose is achieved, that party may recover under restitution. Define Unconscionability. - correct answer✔✔ When a contract is so unfair to one party that no reasonable person in the position of the parties would agree to it. What five types of contracts does the Statute of Frauds apply to? - correct answer✔✔ (1) A contract made in consideration of marriage; (2) A contract promising to guarantee the debt to another (suretyship); (3) A contract that can be performed within one year; (4) A contract for goods at the price of $500+; (5) A contract for the sale of an interest in real property What are the two main ways to satisfy the Statute of Frauds? - correct answer✔✔ (1) By performance and (2) By writing How is a service contract that cannot be performed within a year satisfied? - correct answer✔✔ Full performance of the services contracted by either side satisfies the statute of frauds How is a real estate contract satisfied under the Statute of Frauds? - correct answer✔✔ A signed writing OR part performance if two of the following: (1) Possession , (2) Payment, (3) Improvements to the land What is required in the writing for UCC goods of $500 or more under the statute of frauds? - correct answer✔✔ The quantity of goods sold; No need to mention the price For UCC contract for the sale of goods of $500 or more, partial performance ________ the Statute of frauds but _____________. - correct answer✔✔ Satisfies; Only for the quantity delivered and accepted. Failure to object to a confirming memo within ___ days will satisfy the Statute of Frauds but only if _________. - correct answer✔✔ 10; Both parties are merchants If the modified deal is in the Statute of Frauds world, the SoF requirements ________________. - correct answer✔✔ Must be met for the modification If the modification deal is not in the Statute of Frauds world, the SoF ____________________. - correct answer✔✔ Does not apply even if the initial deal was in the SoF world. When is the excuse of impracticability available? - - correct answer✔✔ (1) Performance becomes illegal after the contract is made; (2) Specific subject matter of contract is destroyed; (3) Performing party of the contract dies or become incapacitated; (4) Performance becomes impracticable. What are the elements of impracticability? - correct answer✔✔ (1) Unforeseeable even occurred; (2) Nonoccurrence of event was a basic assumption on which the contract was made; and (3) Party seeking discharge is not at fault. Define Recission. - correct answer✔✔ Canceling the contract to restore parties to their position before the contract was made. Define Release. - correct answer✔✔ A writing that manifests intent to discharge another party from an existing duty What are the common law requirements for release? - correct answer✔✔ Requires the release be supported by consideration What are the UCC requirements for release? - correct answer✔✔ Written waiver or renunciation signed and delivered by the aggrieved party (no consideration needed) When does a novation arise? - correct answer✔✔ When BOTH parties agree that a substitute person will take over the contractual obligation. What is the effect of a novation? - correct answer✔✔ If there is a valid novation, then the original promisor will be excused from performance. What are the nonbreaching parties two options if a party clearly and unequivocally repudiates the contract? - correct answer✔✔ (1) Treat the repudiation as a breach and sue immediately for damages; or (2) Ignore the repudiation, demand performance, and see what happens When can a party retract their repudiation? - correct answer✔✔ When the other party hasn't: (1) Commenced a lawsuit or (2) Acted in reliance on the repudiation by materially changing its position. Under the UCC, reasonable grounds for insecurity about the other side's performance allows a party to demand _______________. If the party fails to respond within ________, the party can treat the silence as repudiation. - correct answer✔✔ Assurance of performance; A reasonable time ______ damages are the normal way of calculating damages. - correct answer✔✔ Expectation What is the goal of expectation damages? - correct answer✔✔ To put the party in the same economic position they would be in if the contract had been performed as promised. How are expectation damages measured? - correct answer✔✔ By comparing the value of performance without the breach to the value of the performance with the breach. When are unenforceable consequential damages recoverable? - correct answer✔✔ When the breaching party had some reason to know about the possibility of these special damages at the time of contracting. What are general damages? - correct answer✔✔ The type of loss that almost anyone would incur from a breach including incidental damages. What are incidental damages? - correct answer✔✔ The cost of storing rejected goods, finding a new buyer, or finding a replacement vendor What is the nonbreaching party's duty after a contract is breached? - correct answer✔✔ Mitigation (i.e., take reasonable steps to reduce damages from breach). What is the goal of reliance damages? - correct answer✔✔ Put the nonbreaching party in the same economic position that it would be in if the contract had never been entered into in the first place. What is the goal of restitution damages? - correct answer✔✔ Give the plaintiff an amount equal to the economic benefit that the plaintiff conferred on the defendant. When do courts award punitive liquidated damages? - correct answer✔✔ The amount of liquidated damages was reasonable at the time of the contract and actual damages from breach would be uncertain in amount and difficult to prove Under the UCC, when is specific performance available? - correct answer✔✔ Unique goods like art or custom-made items. When can an unpaid seller exercise their right of reclamation? - correct answer✔✔ Requires: (1) The buyer be insolvent at the time of receipt of the goods; (2) The seller must demand the return of the goods within 10 days of receipt (or within a reasonable time if buyer misrepresented their solvency to the seller in a writing within three months of delivery and; (3) The buyer still has the goods. ______ beneficiaries have the right to sue while _______ beneficiaries do not have the right to sue. - correct answer✔✔ Intended; Incidental