What are the two parts of agreement? Use the terms offeror and offeree in your response.

Question 1: There are four required elements of a valid contract. For each of the four, answer the following questions:
1. Agreement
What are the two parts of agreement? Use the terms offeror and offeree in your response.
Under the common law, if the terms of the offer are different than the terms of the acceptance has a contract been created? Explain.
2. Consideration
What is meant by the term consideration?
What is required for for a agreement to meet the consideration requirement?
Why doesn’t a gift promise create a valid contract?
3. Capacity
What are the three issues that arise most often with respect to capacity (as discussed in the textbook)? For each of the three explain how they affect the validity of the contract. (Is the contract void, voidable or valid?)
4. Lawful Object
What is meant by the term lawful object? Give an example of an agreement that may not be a valid contract because it does not have a lawful object?

Question 2: Warranties are a buyer’s assurance that the goods meet certain standards. If a warranty is not met by a seller, the buyer may sue for breach of warranty. The UCC supplies three warranties in contracts for the sale of goods. Answer the following questions.
What are the three implied warranties? Briefly explain the standards set by these warranties.
Is it possible for a seller to disclaim these warranties? How?
What kind of damages are appropriate for a breach of warranty? How are these damages calculated?
Question 3: 3. Not all contracts have to be in writing to be valid or enforceable. The statute of frauds however, requires that certain types of contracts be in writing to be enforceable in a court of law. Briefly explain five types of contracts, described in the textbook, that must be in writing according to the statute of frauds.
Question 4: There are four types of monetary damages commonly associated with breach of contract cases. Briefly explain what each of the following types of damages represent and how the amount of these damages may be calculated.
– Liquidated
– Nominal
– Compensatory
– Consequential
Question 5: Third parties sometime claim rights under others’ contracts; these parties are called third-party beneficiaries. Explain each of the following types of third-party beneficiaries in your own words.
Intended beneficiaries
Donee beneficiaries
Creditor beneficiaries
Incidental beneficiaries. Which case from the textbook illustrates how incidental beneficiaries are treated by the law?Briefly explain the facts and outcome of this case.
Question 6: Answer the following questions about contractual torts. These are wrongs committed by one person against another (torts) that are also associated with contracts.
1. What type of monetary (money) damages are normally awarded in a breach of contract case?

2. What are punitive damages? What is the purpose of punitive damages?

3. Punitive damages are not normally awarded in a breach of contract case but the plaintiffs received punitive damages in both of the following cases. Briefly explain the facts of each case and why punitive damages were appropriate even though they are breach of contract cases.

a. Krysa v. Payne

b. Mitchell v. Fortis

4. In each of the above cases (a & b), the defendant had to pay both standard contract damages and punitive damages. Explain how the amount of kind of damages was determined in both cases. Why were the punitive damages so high?
Questin 8: Answer the following questions with respect to promissory estoppel.
1. Is it an equitable doctrine or a legal doctrine? Briefly explain the difference between equitable and legal doctrines.

2. What are the four elements that must be shown for the doctrine of promissory estoppel to apply?

3. In what two situations, discussed in your textbook, is promissory estoppel commonly used to enforce otherwise unenforceable contracts?
Question 9: The UCC allows contracts to be formed even if the offer and acceptance are missing what would normally be considered “important” contract terms. There are five “open terms” explained in your textbook. What are they and how is each of them resolved? (Hint: The first one is “open price. ” If the price term is not set in the offer to create a sales or lease contract, a “reasonable price” is implied at the time of delivery. Since I have given you one of them you will be graded on the other four.)
Question 10: What is the difference between a shipment contract and a destination contract? In both types of contracts explain when the title passes from the seller to the buyer and which of the two parties (buyer and seller) has the risk of loss during shipment?

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