Contract Law Flashcard

Front

What is the legal theory that allows Arjun to enforce Scarlett's promise even though there was no consideration?

Back

Promissory Estoppel

Answer explanation

The legal theory that allows Arjun to enforce Scarlett's promise is Promissory Estoppel. This doctrine applies when a party relies on a promise to their detriment, even without consideration, as Arjun did by signing the lease.

Front

Nora and Hannah's business contract: Which is NOT required for validity? Options: Legality, Mental Capacity, Promissory Estoppel, Consideration

Back

Promissory Estoppel

Answer explanation

Promissory Estoppel is not a requirement for a valid contract. The essential elements are legality, mental capacity, and consideration, which must be present for the contract between Nora and Hannah to be valid.

Front

Under the Statute of Frauds, which type of contract must be in writing for an agreement to be enforceable?

Back

Contracts for the purchase of real property

Answer explanation

Under the Statute of Frauds, contracts for the purchase of real property must be in writing to be enforceable. Therefore, James and Harper's agreement requires a written contract.

Front

What is the primary difference between an agreement where James offers to pay Luna $100 if she finds and returns his lost dog, and an agreement where James promises to pay Luna $100 if she promises to find his dog?

Back

A bilateral contract involves mutual promises, while a unilateral contract involves a promise in exchange for performance.

Answer explanation

The primary difference is that a bilateral contract involves mutual promises from both parties, while a unilateral contract involves one party's promise in exchange for the other party's performance, as seen in James and Luna's agreement.

Front

Example of a unilateral contract:

Back

A offers a reward for the return of a lost dog.

Answer explanation

A unilateral contract involves one party making a promise in exchange for an act. The correct choice, 'A offers a reward for the return of a lost dog,' exemplifies this, as A's promise is contingent on B's action of returning the dog.

Front

What happens if a person lacking mental capacity signs a contract?

Back

The contract is voidable.

Answer explanation

If Jackson lacked mental capacity, the contract is voidable. This means he can choose to affirm or void the contract, as individuals with mental incapacity are not fully able to understand the implications of their agreements.

Front

Anika, who is 17 years old, enters into a contract to buy a laptop. What is true about this contract?

Back

It is voidable at Anika's election.

Answer explanation

Anika, being 17, is a minor. Contracts with minors are generally voidable at their election, meaning she can choose to affirm or void the contract. Thus, the correct answer is that the contract is voidable at Anika's election.

Front

What is required for Luna to have the competency to enter into a contract to purchase a car?

Back

Understanding the nature and consequences of the transaction

Answer explanation

For Luna to have the competency to enter into the contract, she must understand the nature and consequences of the transaction. This ensures she is aware of her rights and obligations, which is essential for valid consent.

Front

What is NOT considered a necessity for Daniel's contract? Options: Food, Clothing, Education, Luxury car

Back

Luxury car

Answer explanation

A luxury car is not a necessity for Daniel, while food, clothing, and education are essential items that minors typically require. Therefore, the luxury car is the correct choice as it does not qualify as a necessity.

Front

Who bears the burden of proof in a legal dispute over a minor's contract for necessities?

Back

On the plaintiff

Answer explanation

In disputes involving contracts with minors, the plaintiff must prove that the contract is enforceable. Since Luna is a minor, the burden of proof lies on the plaintiff to show that the contract for necessities is valid.