Contracts

This lesson introduces the student to the doctrine and processes involved in interpreting state and federal statutes. Statutes are a critical part of every substantive area of the law, so this is important background for every student, legal professional, lawyer and judge.

A Test lesson for your enjoyment.

It covers:

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This lesson provides an overview of Contract Law, including the sources of Contract Law. The lesson can be run either as an introduction to Contract Law or as a review any time during or after your study of Contract Law.

This lesson presents an introduction to the doctrine that the performance of a pre-existing duty, or a promise to perform such a duty, does not constitute a sufficient consideration to make a promise binding. Through questions based on a series of hypothetical cases, underlying reasons for the doctrine are considered, as well as its ramifications in various contexts. Coverage includes: the performance of duties owed to the promise or third parties as consideration; modifications on one side of executory contracts; substituted contracts following rescission; executory accords; satisfaction; liquidated claims and offers to settle unliquidated claims.

This exercise reviews some substantive principles of contract law and demonstrates the application of that substance to the process of drafting. The exercise begins with a form contract that the user must rewrite to suit the needs of the client. On completion, the user has reviewed applicable principles from both the common law and the U.C.C. In addition, the user has learned principles of drafting that can be applied either to revision of a form or to drafting from scratch. 

This lesson deals with third party beneficiary contracts. The initial questions in this exercise are intended to familiarize students with the various types of contract beneficiaries. Since there is no general agreement on terminology, the questions test the students on both the First Restatement of Contracts types, i.e., creditor, donee, and incidental, and the Second Restatement of Contract types, i.e., intended and incidental. Subsequent questions deal with vesting of contract beneficiaries' rights and with defenses which can be asserted by a promisor against a beneficiary.

A hundred years ago, a law professor said of the parol evidence rule, "There are few things darker than this or fuller of subtle difficulties." Many students and professionals who have studied the rule would agree with that assessment. Hopefully this exercise will illuminate the rule. It does so by examining the functions served by the rule, taking the user through a series of questions that can be used to resolve most issues involving the application of the rule. The Uniform Commercial Code enactment of the rule is examined in detail.

The goal of this lesson is to take the user systematically through UCC Article 2. The lesson accomplishes this goal by having the user study a contract for the sale of goods. The concepts of Article 2 are thereby seen in the practical setting in which they are applied. Conversely, study of the contract reveals the source of each of the included provisions in the law. The user becomes familiar with the default rules and how those rules might be changed on behalf of a client. The user finishes with knowledge of the Code and how the Code may be applied in practice when drafting a contract.

The Statute of Frauds is among the defenses to contract formation. This exercise assists the student in determining whether a transaction is within the statute of frauds, whether the agreement is evidenced by a writing, and whether an exception applies.

Overview of defenses to the formation of a contract.

This is an overview of vocabulary used in the lessons on Defenses. You might wish to run it prior to running those lessons.

This lesson explores the illegality defense to contract formation.

This lesson explores the capacity defense to contract formation, including when a contract may be avoided because of the minority, mental incapacity, or illiteracy of one of the parties.

This lesson explores the duress and undue influence defenses to contract formation.

This lesson presents an overview of unconscionability as a defense to contract formation or to particular clauses in the contract.

An overview of the defenses of misunderstanding and mistake to the formation of a contract.

An overview of the fraud defense to the formation of a contract.

This lesson explores the concept of conditions in the law of contracts. It distinguishes promises from conditions, discusses the various kinds of conditions, and explains ways the courts relieve parties from the harsh effect of conditions. The lesson concludes with two sample exam questions.

This lesson covers one of the fundamental components of contract formation - mutuality of obligation or commitment. Students learn why mutuality of obligation is an essential element of a contract.

This lesson is about satisfaction clauses. This is an area of special concern, as satisfaction clauses appear to make promises illusory.

This lesson assumes students are familiar with the requirement of consideration. This exercise covers one of the exceptions to this general rule. Historically, one situation where consideration was not required to create a binding contract was when the promise was made "under seal." The lesson explains the history of "the seal" and the seal's role in contract law today.

This lesson assumes you are familiar with the requirement of consideration and the rule that past consideration is not good consideration. Ordinarily, a promise is legally binding only if that promise is supported by a consideration. As the student may recall, "past consideration" is a misnomer. If a party makes a promise to pay for a benefit previously conferred, there is no consideration for the promise because the benefit was not bargained for in exchange for the promise. This lesson covers one of the exceptions to this general rule.

The terms of a contract include express and implied promises, conditions, provisos and presuppositions that bind the parties. Contracts often have "gaps" in them, either intentionally or unintentionally left that way by the parties. This exercise considers how courts supply terms to fill those gaps both at common law and under the UCC.

This lesson considers probably the most common type of implied term, that of good faith. At common law, courts often supply a term requiring the parties to exercise "good faith" or "good faith and fair dealing". Moreover, for the sale of goods, the UCC provides that every contract is subject to good faith requirements, which cannot be disclaimed by agreement.