Contract Answer Guide:

Contract based question:

Look at agreement, establish parties, and find out their obligations

Look if parties have capacities to enter K

Look at intention if present otherwise skip

Look at certainty, if parties agreed to what they singed

Check parties consideration, a K must have valid consideration

Consideration/part payment/estoppel:

Look at basic elements of K, establish the K if needed

For Part payment: look through pinnels rule + foakes v beer

Estoppel, look for elements where parties promised a K for performance, but left once performed

Capacity:

Look if person contracting is a minor/mentally ill/ drunkard

- Contract is voidable at the option of the lunatic, idiot or drunkard. (Gibbons v Wright)
- Will only need to pay reasonable price
- Consider the power and vulnerability of the party and if it would be equitable to enforce
such a contract.

Privity:

Look at basic element of K, establish the K

Look at 3rd party rights in the K, see if the 3rd party is covered in K (Himalaya clause, exclusion clause)

Terms to k:

Statement: Mere rep: puff or opinion

Term: binding in a K, issue would be is term valid/reliable upon

- Types: condition: major to K, warranty: minor to K

- Terms expressed or implied
-

Exclusion clause:

Is the clause incorporated into the K?

- What type of exclusion clause is it? where is it located? Whom does it cover? Is it binding?
- Is the clause restrictive?
 - Does the clause cover 3rd party, is there a 3rd party issue?

Discharge:

How was the discharge done?

- Was it by: agreement, performance, breach, frustration, law?

Misrepresentation:

Could the statement made be seen as a misrep?

- Types of misrep: fraudulent, innocent, negligent

Mistake:

One or more parties misunderstanding some factor of formation of K

- 3 types of mistake: common, unilateral, mutual mistake

-

Duress:

Unlawful pressure upon a party to K, into entering the K

- 3 types: person, goods, economic

-

Undue Influence:

Dominant party uses influence over weaker party to obtain benefit that wasn’t avail

- 2 types: presumed: some form of relationship, actual: no relationship

Unconsionability:

K so unfair that it is unconscionable to enter

Harshness is not unconscionable

- Look at elements of amadio case

Illegality:

K is illegal, how does K become illegal

Remedy:

Apply based on above.

Specific performance: breach, threatened breach

Damages (equity): UC, unfairness, laches, hardship, delay, unclean hands

Damages (K): party suffers loss by breach, placed in pos before breach

Damages (T): award of money to put in place so far as possible if tort not committed

Restitution: restoring property/money to P to place in situation P was b4 entering K

QM: half work done, payment for that work done.

Injunction: breach ongoing, must get crt order, not avail where party will be forced into act they
weren’t supposed to

LOOK for mitigation.