Contract Ambiguity Resolution Guide
Summary
Prior dealings between parties can be used to resolve contract ambiguities, known as course of dealing. Incidental third-party beneficiaries cannot enforce contracts, only intended beneficiaries have such rights. In California, privity of contract is not required for product liability claims. A buyer can reject goods with defects if timely notice is given. Manufacturers must inspect products for safety. In a destination contract, the seller is liable until goods reach the buyer. The mirror-image rule requires acceptance without modification. Implied-in-fact and implied-in-law contracts differ. Strict liability suits can argue inadequate warnings. Duress is not a defense for quasi-contracts. Impossibility can excuse performance under UCC. Common knowledge defense applies in product liability. Mailbox rule applies to contract acceptance. Indefinite offers cannot form valid contracts. Non-merchants need consideration for firm offers. Costly performance doesnt excuse contracts. Parole evidence can show omitted provisions. Consideration is needed for contract modifications. Oral contracts can be enforced for services. Discharged contracts extinguish thirdFull Conversation
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If two parties have engaged in prior dealings, then this conduct may be considered in attempting to resolve an ambiguity in a contract between them.
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True. If two parties have engaged in prior dealings, their past conduct can be taken into account to resolve any ambiguity in a contract between them. This is often referred to as "course of dealing" in contract law.
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True or False: If a contract has clear terms, parol evidence can be used to contradict those terms.
If a contract benefits a third party beneficiary incidentally, then the third party beneficiary will have the power to enforce the contract.
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False. If a contract benefits a third party beneficiary incidentally, the third party beneficiary does not have the power to enforce the contract. Only intended beneficiaries have such rights.
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Privity of contract between the plaintiff and the defendant is required to bring a suit based on product liability.
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False. In California, privity of contract is not required to bring a suit based on product liability. The plaintiff can still bring a claim even if they were not a party to the original contract, as long as they can prove the product was defective and caused harm.
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True.
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If a contract benefits a third party beneficiary incidentally, then the third party beneficiary will have the power to enforce the contract.
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False.
Privity of contract between the plaintiff and the defendant is required to bring a suit based on product liability.
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False.
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A buyer may reject the goods or revoke acceptance for any defects in the goods if timely notice is given to the seller.
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True. Under the California Commercial Code, a buyer may reject goods or revoke acceptance if there are defects, provided that timely notice is given to the seller.
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A manufacturers duty of care does not extend to the inspection and testing of the products purchased for used in the final product.
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False. In California, a manufacturer does have a duty of care to inspect and test the products purchased for use in the final product to ensure they are safe. This is part of their responsibility to provide a safe product to consumers.
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A destination contract relieves the seller from liability when delivered to the carrier for shipment.
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False. In a destination contract, the seller is liable until the goods reach the destination and are delivered to the buyer. This is different from a shipment contract where the seller's liability typically ends when the goods are delivered to the carrier.
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Under the mirror-image rule, an offer must be accepted in its entirety without modification or reservation or else no contract is formed.
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True. Under the mirror-image rule, an offer must be accepted exactly as it is without any modifications; otherwise, no contract is formed.
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Implied-in fact contracts and implied-in-law contracts are essentially the same.
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False. Implied-in-fact contracts and implied-in-law contracts are not the same.
- Implied-in-fact contracts are formed by the conduct of the parties, indicating mutual agreement.
- Implied-in-law contracts, also known as quasi-contracts, are created by law to prevent unjust enrichment.
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- Implied-in-fact contracts are formed by the conduct of the parties, indicating mutual agreement.
- Implied-in-law contracts, also known as quasi-contracts, are created by law to prevent unjust enrichment.
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One of the elements of a product liability suit based on strict liability is by arguing that a product was unreasonably dangerous because the manufacturer did not include adequate warnings or instructions.
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True. One of the elements of a product liability suit based on strict liability is that the product was unreasonably dangerous due to inadequate warnings or instructions provided by the manufacturer.
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Duress is a proper defense to the formation of a quasi-contract.
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False. Duress is not a proper defense to the formation of a quasi-contract. Quasi-contracts are created by law to prevent unjust enrichment and are not based on the mutual consent of the parties.
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Impossibility of performance is a proper excuse to performance under the UCC.
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True. Under the Uniform Commercial Code (UCC), impossibility of performance can be a valid excuse for nonperformance if an unforeseen event makes it impossible to fulfill contractual obligations.
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A defendant will not be liable, in a product liability suit, for a plaintiff's injury caused by a commonly known danger.
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True. In California, a defendant in a product liability suit is generally not liable for a plaintiff's injury caused by a commonly known danger. This is known as the "common knowledge" defense.
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A properly mailed acceptance takes effect when mailed, even if it never is received by the offeror to be effective.
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True. Under the mailbox rule, a properly mailed acceptance generally takes effect when it is dispatched, even if it never reaches the offeror. This rule applies to most contracts, including those in California.
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Generally, if an offer is indefinite or vague, an attempted acceptance will not form a valid contract.
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True. Generally, an offer must be definite and certain. If it is too vague or indefinite, an attempted acceptance will not form a valid contract under California law.
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A signed writing by a non-merchant to a merchant to buy or sell goods does not require consideration in order for the offer to be firm and irrevocable.
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False. Under the Uniform Commercial Code (UCC), specifically UCC ยง *-*, a firm offer by a merchant to buy or sell goods does not require consideration to be irrevocable for a certain period. However, this provision applies only to merchants. If a non-merchant makes the offer, consideration is generally required for it to be firm and irrevocable.
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Learning that the performance of a contract will be more costly than originally anticipated will generally excuse the promisor from performing on the contract.
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False. Generally, learning that the performance of a contract will be more costly than originally anticipated does not excuse the promisor from performing on the contract. The promisor is still obligated to fulfill the terms of the contract unless there are specific provisions for such circumstances or other defenses apply.
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Parole evidence may be admitted to show that a provision was omitted as a result of a mistake.
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True. Parole evidence may be admitted to show that a provision was omitted as a result of a mistake. This can be an exception to the parole evidence rule, which generally prohibits the use of outside evidence to contradict or add to the terms of a written contract.
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Consideration is required to modify a contract for the sale of goods.
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True. Under the Uniform Commercial Code (UCC), which governs the sale of goods, consideration is generally required to modify a contract. However, an exception exists if the modification is made in good faith by both parties.
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An oral contract can be enforced when it relates to the construction of a desk costing $*.*.
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True. Under California law, oral contracts can generally be enforced as long as they meet the basic requirements of a contract (offer, acceptance, consideration, and mutual assent). However, certain types of contracts must be in writing under the Statute of Frauds, but a contract for services like desk construction typically does not fall under these exceptions.
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The rights of a third-party beneficiary are not destroyed if a contract is discharged.
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False. If a contract is discharged, the rights of a third-party beneficiary are typically extinguished as well. Discharge of a contract means that the parties' obligations under the contract are terminated, which generally includes any third-party benefits.
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A seller may make a curative tender by tendering goods that meet contract requirements or by tendering substitute goods that the seller believes are an acceptable substitute.
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True. Under the Uniform Commercial Code (UCC), a seller may make a curative tender by tendering goods that meet the contract requirements or by providing substitute goods that the seller believes will be acceptable to the buyer, provided that the substitute is delivered within the contract time.
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In general, one may assign rights if that does not cause the obligor's duties to increase or change materially.
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True. In general, one may assign rights as long as the assignment does not materially increase or alter the obligor's duties. Do you have any more true or false questions?
Acceptance of an offer to form a unilateral contract need not be communicated to the offeror to be effective.
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False. Acceptance of an offer to form a unilateral contract must be communicated to the offeror to be effective. In a unilateral contract, the offer is accepted by performing the requested act, which inherently communicates acceptance.
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In a shipment contract the seller (sender) is required to deliver goods to the carrier to relieve the sender from liability if the goods are destroyed while transporting them.
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True. In a shipment contract, the seller is required to deliver the goods to the carrier. Once the goods are handed over to the carrier, the seller is generally relieved from liability if the goods are destroyed during transportation. The risk of loss typically passes to the buyer at that point.
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If a contract does not specify the time for performance, it may be performed at anytime.
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False. In California, if a contract does not specify the time for performance, the law generally implies that performance must be completed within a reasonable time. The determination of what constitutes a "reasonable time" depends on the nature of the contract and the circumstances surrounding it.
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An unenforceable promise will constitute consideration as long gas the parties to the contract appear to b in agreement.
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False. An unenforceable promise does not constitute valid consideration even if both parties appear to be in agreement. For a promise to be considered valid consideration, it must be legally enforceable.
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Advertisements are generally treated as offers to contract.
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False. Advertisements are generally not treated as offers to contract. They are usually considered invitations to negotiate or make an offer.
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In general, a buyer's duty to pay for tendered goods does not become absolute until the buyer has had an opportunity to inspect the goods.
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True. Under the Uniform Commercial Code (UCC), which applies in California, a buyer's duty to pay for tendered goods typically does not become absolute until the buyer has had a reasonable opportunity to inspect the goods and ensure they conform to the contract.
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An illegality that occurs after an offer is made renders the contract void.
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True. If an illegality occurs after an offer is made but before the contract is executed, the contract will generally be rendered void. This is because the performance of the contract would involve illegal activities, which are unenforceable by law.
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An option, which is paid for by consideration, is itself a contract to refrain from revoking an offer.
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True. An option contract, which is supported by consideration, is a binding agreement where the offeror agrees to keep the offer open for a specified period of time and refrain from revoking it.
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