CONTRACTS OUTLINE Entering into a contract is a voluntary act and a person possesses complete autonomy over whether or not

they enter a contract. I. ROADMAP A. Big Issues 1. How many disputes do you find in the fact pattern 2. Take facts and put them across the different disputes 3. Analyze each communication to determine if they fit the rule you are analyzing 4. When interpreting a statute, quote the statutory language and/or paraphrase B. Big Conclusions 1. For each dispute state a conclusion C. State clearly what you will do in the essay 1. First I’m going to determine what law governs, then determine if a contract formed… (Analytical Framework) D. CIRAC format on every analysis/question II. WHAT LAW GOVERNS? (ANALYTICAL FRAMEWORK # I.) A. UCC – Article 2 1. Deals with the transaction of goods 2. Does not define offer, acceptance and /or consideration B. CISG: United Nations Convention on the International Sale of Goods C. COMMON LAW 1. Case Precedent III. BI – AND UNILATERAL CONTRACTS A. Bilateral Contracts 1. Involves a promise from both parties in the contract 2. The contract is formed when both promises are exchanged B. Unilateral Contracts 1. Involves a promise from one party for an exchange performance 2. Contract is formed when one part is completed (performance) and the other remains as a correlative duty (promise) IV. WAS A CONTRACT FORMED? (ANALYTICAL FRAMEWORK # II.) A. Contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. Restatement (Second) §1 1. Promise is a manifestation of intention to act or refrain from acting in a specified way; so made as to justify a promisee in understanding that a commitment has been made. Restatement (Second) §2 UNIFORM COMMERCIAL CODE CONTRACTS DEFINITION § 1-201 A. Contract is total legal obligation that results from the parties’ agreement as determined by the UCC as supplemented by any other applicable laws

V.

Neither party know or has a reason to know the meaning attached by the other VII. Looks at words and conducts only 2. Manifestation 1. Looks at words. environment 2. Mutual Assent is determined by three elements 1. ELEMENTS OF A CONTRACT In order to judge if there is a contract. Universal Observer Test (Narrowest Test) 1. Present intent to conclude a deal now C. Consideration OFFER is a manifestation of willingness to enter into a bargain so made as to justify another into understanding that their assent to the bargain is invited and will conclude it. Will Conclude it 1. OBJECTIVE THEORY OF INTERPRETATION / REASONABLE PERSON 1. Stated with reasonably certainty 1. Assent is Invited 1. Tangible. A promise for a performance D. The parties attach different meanings to their manifestations and 2. Mutual Assent is a formation of a contract requires there is a meeting of the minds. From the perspective of the hearer 3. A promise for a promise 2. Bargain 1. conduct. perceptible expression. The offeror has no outstanding things to do and the offer can be accepted as is H. Acceptance 3. Has the least amount of information 2. look at whether there is mutual assent A. CONTRACTS OUTLINE LENSES OF CONTRACT INTERPRETATION A. Offer 2. Does not only look at just the two people. Justify 1. economy. NOTES ON OFFER VIII. Clearly asking the offeree to say yes G. Restatement (Second) §22 1. Positioned Test 1.VI. Willingness 1. Socially Situated (Broadest Test) 1. Restatement (Second) §33 E. . Restatement (Second) §24 A. Doctrine of Misunderstanding: there is no manifestation of mutual assent to an exchange if: 1. look at the whole picture B. oral or written words or action B. The offer has been expressed with such detail that the court can figure out there has been a breach and give a remedy. SUBJECTIVE THEORY OF INTERPRETATION 1. Another F.

Silence does not constitute an offer unless 1. An offeree has accepted an offer when the acceptance is put in the mailbox. Mailbox Rule of Acceptance 1. Restatement (Second) §39 REVOCATION OF AN OFFER an offeror can revoke an offer up until the point of acceptance A. changes to the offer constitute a counter-offer 2. The offer gives the offeree a continuing power to complete the manifestation of mutual assent by acceptance of the offer. Lapse: expire after passage of a specified or reasonable period of time D. Death of the offeror or the offeree UNIFORM COMMERCIAL CODE SCOPE § 2-102 A. UCC promotes policies: 1. Rejection or counter-offer by the offeree 2. Death or incapacity of either party 5. The offeror is a master of his offer IX. not when it reaches the offeror E. Revocation by the offeror 4. Revocation of the offer C. The offeree gains or retains the benefits of the offered contract COUNTEROFFER is an offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer. The parties agree that silence will constitute acceptance 2. Same in terms and acceptance F. Restatement (Second) §52 D. . Applies to transactions in goods UNIFORM COMMERCIAL CODE SUPPLEMENTAL LAW § 1-103 A. Offer can be accepted only by a person whom it invites to furnish the consideration. Lapse of time 3. To simplify. Restatement (Second) §65 G. Restatement (Second) §35 B. Rejection or counteroffer B. positioned test) 2. Can be revoked anytime before acceptance by the offeror 3. The parties’ past dealings have established a practice in which silence is understood to convey acceptance 3. an offer can be accepted by any reasonable means if it is the one used by the offeror or one customary in similar transactions. clarify and modernize the laws of commercial transactions X. XIII. Mirror Image Rule of Acceptance 1. If not unambiguously specified. Restatement (Second) §50 A. An acceptance to an offer must be the mirror image of the offer.CONTRACTS OUTLINE 1. XII. The non-occurrence of any condition of acceptance under the terms of the offer C. ACCEPTANCE is a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer. Tested from perspective of the hearer (Objective theory of interpretation. Offeree’s power of acceptance is terminated by: Restatement (Second) §36 1. XI.

The offeror’s duty of performance under any option contract so created is conditional on completion or tender of the invited performance in accordance with the terms. duress. misrepresentation. DS ACCEPTANCE BY PERFORMANCE. An offer by a merchant in signed writing that gives assurance that offer will no be revocable. law merchant 2. UNIFORM COMMERCIAL CODE FIRM OFFERS § 2-205 A. B.CONTRACTS OUTLINE 2. There is no contract. An option contract is a promise which meets the requirements for the formation of a contract and limits the promisor’s power to revoke an offer. coercion. ACCEPTANCE BY PROMISE § 50 (2) – BILATERAL CONTRACTS A. XVIII. Permit the continued expansion of commercial practice through custom. Make uniform the law among the various juridictions B. § 87 (2) – Detrimental reliance 1. OPTION CONTRACTS RESTATEMENT (SECOND) § 25 A. . All things which are moveable at the time of identification to the contract for sale UNIFORM COMMERCIAL CODE TRANSACTIONS OR CONTRACT FOR SALE § 2-106 A. XX. XVI. for lack of consideration during the time stated (or if no time stated for a reasonable time) but the time cannot exceed three months. fraud. Consists in the passing of title from the seller to the buyer for a price B. § 87 (1) B. and other validating and invalidating XIV. mistake. XV. Unless displaced by particular provisions of the UCC. Principal and agent. Acceptance by performance requires that at least part of what the offer requests be performed or tendered and includes acceptance by a performance which operates as a return promise OPTION CONTRACTS CREATED BY PART PERFORMANCE OR TENDER RESTATEMENT (SECOND) § 45 –UNILATERAL CONTRACTS A. supplement its provisions with common law for these areas 1. and agreement of the parties 3. A present sale means a sale which is accomplished by the making of the contract NON REVOCABLE OFFERS XVII. UNIFORM COMMERCIAL CODE GOOD DEFINITION § 2-105 A. estoppel. Includes both a present sale of goods and a contract to sell goods at a future time UNIFORM COMMERCIAL CODE SALE DEFINITION § 2-106 A. usage. an option contract is created when the offeree tenders or begins the invited performance or tenders a beginning of it. Law and equity. bankruptcy. Where an offer invites an offeree to accept by rendering a performance and does not invite a promissory acceptance. XXI. it’s pre setup in order for the offeree to decide to take the contract C. XIX. EXPRESS OPTION CONTRACT RESTATEMENT (SECOND) § 87 A.

TSL: the repeated sending of terms does not constitute an acceptance of the terms or as a conditional acceptance. modification. The performance may consist of 1. If an offeree expressly conditions his assent on the offeror accepting the additional or different terms. “MUCH ADO ABOUT NOTHING JURISDICTIONS” RULE A. A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise B. A volitional relinquishment by act or word. They materially alter it 3. KNOCKOUT RULE (MAJORITY TEST) A. If both parties conduct themselves as if there is an existence of a contract XXV. merchant. Notification of objection to them has already been given or is given within a reasonable time after notice of them is received XXIV. or 2. Doesn’t get real of the counter offer because it provides that 1. B. the excuse of the nonoccurrence of a duty XXIX. A definite and seasonable expression of acceptance sent within a reasonable time is an acceptance even though the offeree states additional or different terms from those offered or agreed upon B. UNIFORM COMMERCIAL CODE BATTLE OF THE FORMS RULE § 2-207 (2) A. or destruction of a legal relation . WAIVER A. if the party who sends the terms does not expressly seek the others assent. REPEATED TERMS A. XXIII. Additional terms are construed as proposals for addition to the contract or if its between merchants are considered part of the contract unless 1. FALLOUT RULE (MINORITY TEST) A. the court will give the offeror the choice in terms and the offeree’s terms are knocked out.CONTRACTS OUTLINE XXII. When the offeree’s terms conflict with the offeror’s terms. The offer expressly limits acceptance to the terms of the offer 2. When two conflicting terms are offered by the offeror and the offeree. XXVII. Step Saver v. Completely knocks out the mirror-image common rule C. A forbearance or 3. both terms are knocked out and the court will supplement another § to resolve the conflict XXVI. or any performance including forbearance or return promise done or given as inducement for the promise A. For merchant v. The creation. use the § 2-207 analysis XXX. A court considers that the missing different terms was just a legislative mistake and was meant to be there XXVIII. UNIFORM COMMERCIAL CODE BATTLE OF THE FORMS RULE § 2-207 (3) A. An act other than a promise. UNIFORM COMMERCIAL CODE BATTLE OF THE FORMS RULE § 2-207 (1) A. then the offeree has made a counter offer. CONSIDERATION: a return promise or performance that is bargained for.

The performance or return promise may be given to the promisor or to some other person.) XXXII. It may be given by the promisee or by some other person. A promise is not enforceable unless it was given in exchange for a consideration XXXI.) XXXVI. REMEDIES (ANALYTICAL FRAMEWORK # VII. VOCABULARY .) XXXIII. ARE THERE ANY EXCUSES? (ANALYTICAL FRAMEWORK # VI.) XXXV. ALTERNATIVE THEORIES (ANALYTICAL FRAMEWORK # IX. THIRD PARTIES (ANALYTICAL FRAMEWORK # VIII.) XXXVIII. DEFENSES (ANALYTICAL FRAMEWORK # III. D.) XXXIV.) XXXVII. WAS THERE A BREACH? (ANALYTICAL FRAMEWORK # V.CONTRACTS OUTLINE C. TERMS OF A CONTRACT (ANALYTICAL FRAMEWORK # IV.

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