Contracts Flashcards

Under the common law mirror image rule, an acceptance that varies the terms of an offer is treated as:

Answer: A counter-offer that rejects the original offer

Under the common law mirror image rule, an acceptance that differs in any material term from the offer operates as a rejection and counter-offer rather than an acceptance.

Which doctrine allows a court to enforce a promise even without consideration if the promisor should have expected the promisee to rely on the promise?

Answer: Promissory estoppel

Promissory estoppel (detrimental reliance) allows enforcement of a promise without consideration when the promisor reasonably expected reliance, the promisee did rely, and injustice can only be avoided by enforcement.

The Statute of Frauds requires contracts for the sale of goods valued at $500 or more to be:

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

Under UCC § 2-201, contracts for the sale of goods for $500 or more must be in a writing sufficient to indicate a contract was made and signed by the party against whom enforcement is sought.

Under Massachusetts law, a covenant not to compete is enforceable only if it:

Answer: Is narrowly drawn as to time, geography, and scope of activity

Massachusetts enforces non-compete agreements only if they are reasonable in duration, geographic scope, and type of activity restricted, and are supported by consideration.

Which contract remedy places the non-breaching party in the position they were in before the contract was made?

Answer: Restitution/reliance damages

Restitution or reliance damages restore the non-breaching party to their pre-contract position by recovering what was conferred on the breaching party or costs incurred in reliance.

Under the UCC, a merchant's firm offer is irrevocable without consideration for a period not exceeding:

Answer: 90 days

UCC § 2-205 provides that a merchant's signed, written firm offer is irrevocable for the time stated or, if no time is stated, for a reasonable time, but in no event exceeding three months (90 days).