Defenses to enforceability Bar Exam Flashcards - Medical Study Cards
Master Defenses to enforceability with Oncourse flashcards. These spaced repetition flashcards are designed for medical students preparing for NEET PG, USMLE Step 1, USMLE Step 2, MBBS exams, and other medical licensing examinations.
Defenses to enforceability Flashcard Deck - 10 Cards
Flashcard 1: What is the effect of a misunderstanding about a material contract term when neither party knows the other's meaning?
Answer: No contract is formed if the parties attach materially different meanings to an essential term and neither party knows or has reason to know of the other's meaning. If one party knows or has reason to know the other's meaning, the innocent party's reasonable meaning generally controls.
Flashcard 2: What are the principal exceptions to the Statute of Frauds for a contract involving land or goods?
Answer: For land, part performance may support enforcement when the buyer has taken possession, made payment, or made substantial improvements, depending on the jurisdiction; equitable estoppel may also apply. For goods, exceptions include specially manufactured goods, admissions in court, and payment or acceptance of goods, with enforcement limited to the amount paid for or accepted.
Flashcard 3: What writing is generally sufficient to satisfy the Statute of Frauds for a sale of goods under the UCC?
Answer: A writing sufficient to indicate that a contract for sale has been made and signed by the party to be charged is sufficient, but it is enforceable only up to the quantity of goods stated in the writing. The writing need not contain every term.
Flashcard 4: What are the principal defenses of incapacity, illegality, and unconscionability?
Answer: A minor or mentally incapacitated person generally may disaffirm a contract, an agreement for an illegal purpose is unenforceable when enforcement would violate public policy, and an unconscionable contract or term may be refused enforcement or limited by the court. Unconscionability commonly requires both procedural unfairness in formation and substantively oppressive or one-sided terms, though the required degree of each may vary.
Flashcard 5: What types of agreements are within the Statute of Frauds?
Answer: The traditional categories are suretyship promises, agreements made in consideration of marriage, transfers of interests in land, contracts that cannot be performed within one year, and UCC sales of goods priced at $500 or more. The applicable statute and modern amendments may change the goods-price threshold.
Flashcard 6: What must be shown to establish fraudulent misrepresentation as a defense to enforcement?
Answer: The defendant must show a material or fraudulent false assertion of fact, made with knowledge of its falsity or recklessness, intended to induce assent, actual and justifiable reliance, and resulting harm. The remedy is generally rescission, with damages potentially available for fraud.
Flashcard 7: When does nondisclosure justify avoidance of a contract under the majority Restatement rule?
Answer: Nondisclosure permits avoidance when disclosure is required to correct a previous assertion, disclose a mistake about a basic assumption where nondisclosure violates good faith, correct a material mistake about the contents or effect of a writing, or disclose facts necessary to prevent an inconsistent prior statement from being misleading. Mere silence ordinarily is not actionable.
Flashcard 8: What are the elements of a mutual mistake that permits rescission of a contract under the majority Restatement rule?
Answer: The mistake must concern a basic assumption on which the contract was made, materially affect the agreed exchange, and create an adverse effect on the mistaken party; the party seeking relief must not bear the risk of the mistake. The mistake must exist when the contract was formed.
Flashcard 9: What circumstances make a contract voidable for duress under the majority rule?
Answer: Duress exists when a party's assent is induced by an improper threat that leaves no reasonable alternative, including a wrongful threat of physical harm or a sufficiently improper economic threat. A threat to breach a contract may be duress when used in bad faith and the threatened party has no reasonable alternative.
Flashcard 10: When may a unilateral mistake make a contract voidable under the majority rule?
Answer: A unilateral mistake permits rescission when it concerns a basic assumption, materially affects the exchange, and enforcement would be unconscionable or the other party had reason to know of the mistake or caused it. Rescission is generally unavailable if the mistaken party assumed the risk or failed to exercise reasonable care.
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