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1) Consideration Substitutes
a) Promissory Estoppel
i) Promise
ii) Reasonably expected to induce reliance
iii) Reliance in act induced
iv) Remedy limited as !ustice re"uires
b) Promises in #ritin$ %&etters o Intent are Enorceable)
i) Express 'ritten statement t(at si$ner intends to be le$ally bound
ii) )alid and enorceable e*en or lac+ o considerations
c) Promises under seal do not re"uire consideration %not applicable in ,CC cases)
-) &ac+ o Capacity Deense
a) Economic duress or business compulsion
b) Economic loss as a result
c) In!ured party (as an immediate le$al remedy to ma+e (er '(ole 'it(out *oidin$ t(e contract
.) Statute o /rauds
a) 0eneral Re"uirements
i) #ritin$
ii) Si$ned by t(e party to be c(ar$ed
iii) Su1cient indication o terms
iv) Terms are ascertainable 'it( certainty
v) Intent of the party to be charged to be bound
b) Perormance O*er One 2ear3 No 'ritin$ re"uired
c) &eases o Real Property3 /or more than three years must be in 'ritin$
d) ,nconscionability
i) Si$nin$ party lac+s meanin$ul c(oice in acceptin$ t(e c(allen$ed contract or clause
ii) C(allen$ed contract or clause must unreasonably favor t(e assertin$ party
4) T(ird Party 5ene6ciaries
a) Intended 5ene6ciary Test
i) Intent o t(e parties and
ii) Perormance satis6es promisee7s obli$ation to pay t(e bene6ciary or
iii) Promisee intended to $i*e t(e bene6ciary t(e bene6t o t(e promised perormance
b) )estin$ o Ri$(ts
i) Immediately
ii) Cannot be modi6ed unless expressly reser*ed in t(e contract
iii) Party to t(e contract can assert all deenses a$ainst t(e bene6ciary
8) /orum Selection Clauses
a) 0eneral Rule3 )alid
b) Exception3 unreasonable under t(e circumstances
9) Conse"uential Dama$es
a) /ailure to ac(ie*e special purpose o t(e contract
b) ,nusual circumstances +no'n to t(e parties '(en contracted
c) No reco*ery or emotional distress
d) Can be limited or eliminated by contract pro*ision
:) ,CC #arranties or T(ird Parties
a) Natural person
b) /amily; (ouse(old; or $uest
c) Personal in!ury