Defenses to Contract Enforceability Flashcards

A contract requires a party to perform an act that was legal when the contract was formed but becomes illegal before performance is due. The defense available is:

Answer: Supervening illegality, which discharges the obligor's duty to perform

When performance becomes illegal after contract formation due to a change in law, the doctrine of supervening illegality discharges the affected party's contractual duties.

Grace is pressured to sign a contract by her domineering adult son, who controls her finances and daily life, even though no explicit threats were made. The appropriate defense is most likely:

Answer: Undue influence, because her son's dominant position over her substituted his will for hers

Undue influence arises where a dominant party in a confidential or special relationship overcomes the weaker party's free will without resorting to explicit threats.

Under the CISG or UCC, when a merchant fails to object to a written confirmation that differs from the oral agreement, and both parties are merchants, what is the effect on the Statute of Frauds requirement?

Answer: The written confirmation can satisfy the Statute of Frauds against the merchant who fails to object within a reasonable time

Under UCC §2-201(2), a written confirmation sent between merchants satisfies the Statute of Frauds against the receiving merchant who fails to object within 10 days.

Two parties enter a contract for the sale of widgets. Unknown to either party, the factory producing the widgets burned down the day before contracting. The best defense to enforcement is:

Answer: Mutual mistake of existing fact, because both parties contracted under a false assumption about the subject matter

When both parties contract under a mutual mistake about a material existing fact (here, that the factory still existed), the contract may be voided.

Which party may assert mental incapacity as a defense when a person contracts during a lucid interval despite a history of mental illness?

Answer: No party, because contracts made during lucid intervals are valid and enforceable

A person who contracts during a lucid interval — a period when they have full cognitive capacity — forms a valid, enforceable contract despite a general history of mental illness.

A contract for personal services requires famous singer Diva to perform at a concert. Diva loses her voice permanently from illness before the event. Which defense discharges her obligation?

Answer: Supervening impossibility, because personal performance is impossible due to illness

In personal service contracts, the death or incapacitating illness of the performing party makes performance objectively impossible, discharging the obligation.

A defendant claims that a contract should not be enforced because, after agreeing to provide catering for a wedding, the venue burned down and the wedding was cancelled. The defendant's strongest defense is:

Answer: Frustration of purpose, because the principal purpose of the catering contract has been destroyed by an unforeseen event

Frustration of purpose applies when an unforeseen event destroys the principal purpose of a contract even though performance is technically still possible.