Contracts and Commercial Law Flashcards

Under the common law, a valid contract requires offer, acceptance, and which third essential element?

Answer: Consideration

Common law requires offer, acceptance, and consideration — a bargained-for exchange — to form a binding contract.

Under UCC Article 2, which of the following is required for a contract for the sale of goods over $500 to be enforceable?

Answer: Writing signed by the party to be charged

UCC 2-201 requires a writing sufficient to indicate a contract and signed by the party against whom enforcement is sought for sales over $500.

The parol evidence rule generally bars introduction of prior or contemporaneous oral agreements that would contradict which type of document?

Answer: A fully integrated written contract

The parol evidence rule prevents extrinsic evidence from contradicting a final, fully integrated written contract.

Anticipatory repudiation occurs when a party clearly and unequivocally indicates before performance is due that it will do what?

Answer: Not perform its contractual obligations

Anticipatory repudiation is a party's unequivocal pre-performance announcement that it will not perform, entitling the other side to sue immediately.

The doctrine of promissory estoppel allows enforcement of a promise even without consideration when the promisee has done what?

Answer: Detrimentally relied on the promise

Promissory estoppel enforces a promise when a party reasonably and detrimentally relied on it and injustice can only be avoided by enforcement.

Under NJ law, which doctrine may render a contract unenforceable if one party had no meaningful choice and the terms are unreasonably favorable to the other?

Answer: Unconscionability

Unconscionability doctrine invalidates contracts with procedural unfairness (no meaningful choice) and substantive unfairness (oppressive terms).