Contracts Flashcards

Under the common law of contracts applied on the Idaho Bar Exam, which of the following is required for a valid contract?

Answer: Offer, acceptance, consideration, and mutual assent

A valid contract requires offer, acceptance, consideration, and mutual assent (meeting of the minds) — all fundamental common law elements tested on the bar exam.

Which of the following is a valid form of consideration?

Answer: A bargained-for exchange that confers a benefit or imposes a detriment

Consideration requires a bargained-for exchange that either confers a benefit on the promisor or imposes a detriment on the promisee.

Under the mirror image rule, an acceptance that adds new terms is treated as:

Answer: A counteroffer that rejects the original offer

Under common law's mirror image rule, an acceptance that varies any term of the offer is treated as a counteroffer, rejecting the original offer.

Under Article 2 of the UCC as applicable on the Idaho Bar Exam, a contract for the sale of goods for $500 or more must generally be:

Answer: In writing and signed by the party to be charged

UCC § 2-201 (the statute of frauds for goods) requires contracts for the sale of goods priced at $500 or more to be in a writing signed by the party against whom enforcement is sought.

Which doctrine allows a party to enforce a promise even without consideration when the party has reasonably relied on the promise to their detriment?

Answer: Promissory estoppel

Promissory estoppel (detrimental reliance) allows enforcement of a promise when a party reasonably relies on it to their detriment and injustice can only be avoided by enforcement.

Under the common law perfect tender rule's analog for services contracts, a material breach by one party generally:

Answer: Allows the non-breaching party to suspend performance and sue for damages

A material breach discharges the non-breaching party from any further duty to perform and entitles that party to sue for total breach damages.