Contract law

Law

The Agreement: Acceptance

1. Exercise: An acceptance will create a contract. At common law, the acceptance had to be identical (mirror image) to the offer. A response that was not identical would amount to a counter-offer and cancel out the offer. Modernly, this is no longer the case. If the offeree gives a grumbling response, or if the response given contains additional terms that are unimportant (immaterial), it will still be ruled an acceptance! The UCC reflects a greater departure from the traditional common law approach.

When merchants (pros) are transacting business, they almost always rely on their own forms. An offer will be made on one form and an acceptance will be presented on another form. The purported acceptance will invariably contain terms and conditions that are not in the offer. Will the additional terms cause the court to rule that a counter offer was made? Will a court find a contract based on the terms that are identical and then disregard the additional terms? Will a court find a contract and include the additional terms? Submit your answer.

2. Exercise: Contract law requires proof that the offeree ‘intended’ to accept the offer. It is not an uncommon defense for the offeree to allege that she did not intend to accept the offer. The offeree might argue that she didn’t even know that an offer was being made, or that when signing the document she failed to read all of the terms, or that she did read all of the terms but did not understand certain ones.

How would an offeror prove that the offeree did intend to accept a particular offer if the offeree contended that she was only joking, or that she didn’t know that an offer was being made, or that she knew she was signing an offer but she didn’t read all of the terms or didn’t understand some or all of the terms and conditions?

Consideration

3. Exercise: There are 4 reasons why an agreement would lack consideration. Your assignment is to submit a factual example for each of the four reasons and to correctly identify which of the four reasons the factual situation addresses. In other words, …”This agreement lacks consideration because of the rule of __________________ . Thus, your assignment would appear as follows: A and B agreed to __________________. A promised to ___________ and B ________________. This agreement would not be enforceable because it lacks consideration. It lacks consideration because ________________ (an you must identify which of the legal principles applies).

4. Exercise: There exist theories in contract law that would allow a party to enforce a promise and or agreement even though it that lacked consideration. Your assignment is to list a fact situation for each individual theory and identify the theory. Thus, your assignment would appear as follows: A and B entered into an agreement that could not be enforced because it lacked consideration due to the fact that ___________. However, according to the theory of ____________ , _____ would be able to enforce the agreement. This theory requires that _____ prove the following: ____________________________.

Reality of Consent

5. Exercise: List the ways by which a party to a contract can cause a fraudulent misrepresentation to occur. Give an example for each way that you list.

6. Exercise: List the ways by which a party to a contract can cause an innocent misrepresentation to occur. Give an example for each way that you list.

7. Exercise: Identify the similarities and the differences between fraud, misrepresentation and mistake.

8. Exercise: Give three examples of why a party would be required to voluntarily disclose information to the other contracting party.

Capacity to Contract

9. Exercise: Give five examples of contracts between a minor and an adult that would result in a judge ruling that the minor could not avoid the contract. Explain the minor’s duty to make restitution to the adult (when avoiding the contract). Also explain how the common law and modern law differ with regard to the minor’s duty to make restitution.

10. Exercise: Give an example of a contract containing an exculpatory clause that is illegal and explain why it is illegal. Give an example of a covenant against competition that is illegal and explain why it is illegal. Give an example of an adhesion clause. Give an example of a contract that is unconscionable and explain why it is illegal. Assume that A was required by law to have a regulatory license but did not. Also assume that A provided a service to B pursuant to a contract. Would A be able to recover for the services rendered? Explain.

Last Updated on February 11, 2019 by Essay Pro