EXAM 1 GUIDE (CIVILEN 5840)

1 Oral contracts are enforceable T

2 Breach of Contract by one party does not excuse performance by the other party F
A bilateral contract is one in which there is a mutuality of obligation on the part of both
3 parties T
4 Promissory Estoppel” is a non-contractual equitable remedy T
Breach of contract is the failure of a party to perform without sufficient excuse or
5 justification for the non-performance. T
6 Handwriting never prevails over the pre-printed contract, if the two conflict F
A party who does not perform to the exact letter of the contract in every respect will be
7 found to have breached the contract F
“Duress” is the interference with a person’s free will because of the fear of harm to himself
8 or others T
9 An affirmative defense is a defense to the formation or enforcement of a contract. T
10 An “Implied Contract” is a contract implied from the conduct of the parties T
11 The extended total prevails over the unit price, if the two conflict. F
Losing money while performing a contract is a valid legal reason to stop performing the
12 contract. F
13 Assigning a contract excuses further performance by and liability of the assignor. F
14 An “illusory promise” is unenforceable because it is not actually a promise. T
Compensatory damages put the aggrieved party in the position they would have been had
15 the contract never been formed (go back in time). T
Restitution puts the aggrieved party in the condition they would have been had the
16 contract never been formed (go back in time). T
An offer which, by its terms, is open for acceptance for a certain period of time MUST
17 remain open for that set period of time. F
The “Mirror Image Rule” requires the acceptance of an offer to conform to the terms of the
18 offer T
The Offeror has the power to structure the offer so as to receive acceptance in the manner
19 he so chooses T
20 Under no circumstances can a third party beneficiary ever sue to enforce the contract. F
 In construing the contract, the court will give greater weight to the conduct of the parties
in performing the contract than to the written words in the contract, if there is conflict
21 between the two F
22 Subsequent illegality of the subject matter of the contract terminates the contract. T
23 Contract breachers are subject to criminal fines, penalties & jail time for their breaches F
24 All contracts are required to be written to be legally enforceable F
The bid proposal may be withdrawn anytime by the contractor after the bid time, in a
25 public bid setting because the proposal is an offer F
26 “Pre-existing duty rule” concerns consideration and a new promise T
Unless disallowed in writing, a Contract may be assigned by one party without the consent
27 of the other party T
“Specific performance” is the most common remedy available against a breaching party to
28 a contract. F
29 Existing laws are not a part of every contract. If it isn’t in the contract, it doesn’t count F
A worker strike is not a valid legal excuse to terminate the contract by the party affected by
30 the strike T
31 Breach of contract is the normal method of termination of contract F
32 The defense of “Infancy” May be asserted by either party to the contract. F
A party is always legally entitled to collect a reward regardless of whether or not they knew
33 of the reward. F
34 Newspaper advertisements are not offers, but rather invitations to make an offer T
The courts prefer to construe “satisfaction” type clauses using objective standards rather
35 than subjective standards. T
36 Vagueness is construed against the drafter of the vague language T
A significant estimating judgment error is a valid reason for a contractor to use to
37 withdrawn its bid proposal in Ohio public bid setting F
38 Any party can modify its contract without additional consideration being necessary F
39 Figures (“5”) prevail over the written words (“five”) if the two conflict F
40 The non-breaching party has a duty to mitigate the damages resulting from the breach T
41 Death of a Party terminates the contract F
42 Destruction of the subject matter of the contract terminates the contract T
43 “Liquidated Damages” may be used as a punishment against the breaching party F
44 “Waiver” is the intentional relinquishment of a known right T
45 A unilateral contract is accepted by performance only. T
An executed contract is one which has been signed by the parties and/or been fully
46 performed T
47 Contracts concerning an illegal subject matter are void T
48 Statue of frauds required that certain types of contracts be fully in writing F
49 Contracts with minors (infants) are void. F
50 Full and satisfactory performance by both parties is the normal way for a contract to end T
51 Laws are enacted to help ensure predictability in society T
52 There are generally two types laws: procedural and substantive T
53 maritime law governs rights on the open seas and navigable waterways T
The United States Constitution guarantees that a citizen's rights to life, liberty and the
54 pursuit of happiness can only be denies through due process of law T
55 A Court of Appeals rules on decisions appealed from trial courts. T

To keep from being in breach of contract, one must perform to the exact letter of the
1 contract in all respects F
2 Contract with mentally challenged people are illegal F
3 Unit Price contracts are susceptible of "front end loading" by the bidder T
There are two types of property that can be owned by a person: real property and personal
4 property T
If a government takes a citizen's property by eminent domain, that property owner must
5 forfeit that property without any compensation from the government F
6 A restraining order is an equitable remedy T
7 A bid proposal constitutes a part of the construction contract documents T
8 The United States Supreme Court is the highest court in the United States T

Offer + Acceptance + Consideration = CONTRACT

1 Bilateral Contract
2 Liquidated Damages
3 Quasi Contract
4 Implied Contract
5 Architect/Engineer
6 Promissory Estoppel
7 Unilateral Contract
8 Contractor
9 Offer
10 Owner
Promise for a promise
Pre-Agreed upon damages
Unjust enrichment
Actions, not words
Designer
Detrimental Reliance
Promise for an act
Party perforing the work
Promise calling for a return promise, act or forbearance
Party for whom work is performed

1 Breach of contract remedy Money damages

2 Executed Fully performed
3 Illegal Contract Voidable Contract
4 Contract with a minor Voidable Contract
5 Mirror Image Rule Acceptance must conform to the offer
6 Unconscionable Extremely unfair (Shocks the conscious)
7 Fraud Intentional lie or misrepresentation
8 Duress Fear of harm
9 Illusory promise No promise at all
10 Novation Agreement to release a party and accept a different party in substitution

1. Explain the Statute of Frauds writing requirement

It must be evidenced by writing and signed by the party to be charged

2. Name/describe the types of contracts to which it applies

Any goods over $500

Anything involving Real Estate

Contract that cannot be performed within one year