Contract Law Remedies Explained

Summary

Rescission cancels a contract, returning parties to their pre-contract positions. Promissory estoppel enforces promises without formal contracts if reliance causes detriment. Unilateral contracts require performance for acceptance. Implied-in-fact contracts dont need detrimental reliance. Minors can void contracts. Valid offers need intent, terms, communication. Objective theory assesses contract formation by reasonable person standard. Reliance damages apply in promissory estoppel. Mailbox rule makes acceptance effective when dispatched. Mirror image rule requires exact offer acceptance. Consideration involves value and exchange. Preexisting duty makes additional demands unenforceable. Statute of frauds mandates written contracts. Unilateral mistakes rarely grant relief. Injury proof needed for damages in fraud. Condition precedent requires event before obligation. Substantial performance allows contract continuation with damages. Anticipatory repudiation allows immediate breach suit. Time is of the essence makes timing crucial. Reformation adjusts broad non-compete clauses. Specific performance rare for services. Liquidated damages must be reasonable. Nominal damages recognize breach without economic injury. Satisfaction failure allows original or accord

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A general contractor solicits bids from a group of independent contractors to prepare an overall bid for a particular project. The general contractor selects the lowest bid and incorporates the cost into the overall bid and is awarded the project. The independent contractor with the lowest bid backs out of the deal, prior to the exchange of any consideration. Although we are lacking a major element of a valid contract, a court may nevertheless enforce certain contractual rights because of what doctrine:
The doctrine you're referring to is called "promissory estoppel." This legal principle allows a court to enforce a promise even in the absence of a formal contract if one party has relied on that promise to their detriment.
Do you need more information on how promissory estoppel works in Oregon?
A unilateral contract can only be accepted through performance. Group of answer choices True False
True. In a unilateral contract, acceptance occurs only through the performance of the requested act.
An implied-in-fact contract has the following requirements, EXCEPT: Group of answer choices One party knew or should have known payment was expected Detrimental reliance One party had a chance to reject the service or property but didn’t One party furnished a service or property
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An implied-in-fact contract has the following requirements, EXCEPT:
- Detrimental reliance
Implied-in-fact contracts are formed by the conduct of the parties, and detrimental reliance is not a necessary requirement for their formation.
When a minor enters into a contract the contract is enforceable and there is nothing the minor can do to rescind the contract. Group of answer choices True False
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False. In Oregon, as in most jurisdictions, contracts entered into by minors are generally voidable at the discretion of the minor. This means a minor can usually choose to rescind or enforce the contract. There are exceptions, such as contracts for necessities.
A valid offer must have: Group of answer choices Consideration, Capacity, Legality Intent, Terms, Communication Acceptance, Consideration, Capacity Offer, Acceptance, Consideration
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A valid offer must have:
- Intent
- Terms
- Communication
These elements ensure that the offer is clearly communicated and understood by all parties involved.
The Objective Theory of Contracts raises the question: Group of answer choices What are the subjective thoughts and beliefs of the person entering into the contract? How has the party performed in past contracts? How would an expert interpret the formation of the contract? Would a reasonable person believe that a contract was formed based on what the party said, how they acted, and the surrounding circumstances?
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The Objective Theory of Contracts raises the question: "Would a reasonable person believe that a contract was formed based on what the party said, how they acted, and the surrounding circumstances?"
This theory focuses on an external perspective rather than the internal thoughts and beliefs of the parties involved.
When Promissory Estoppel is enforced by a court, what type of damages are awarded? Group of answer choices Incidental Damages Nominal Damages Reliance Damages Punitive Damages
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When Promissory Estoppel is enforced by a court, the type of damages that are typically awarded are:
- Reliance Damages
These damages are intended to compensate the promisee for expenses or losses incurred due to their reliance on the promise.
Do you have any further questions about promissory estoppel or other legal principles?
When mail is the authorized means of acceptance stated in a valid offer, under the Mailbox Rule, when is acceptance effective? Group of answer choices Upon receipt by the offeror When reasonable as determined by the reasonable person standard When signed by the offeree When dispatched (dropped in the mailbox)
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Under the Mailbox Rule, when mail is the authorized means of acceptance in a valid offer, acceptance is effective when dispatched (dropped in the mailbox).
Do you have any other legal questions or need more information on contract law in Oregon?
When an offeree alters the terms of the offer, the new terms are considered a counteroffer and thus a rejection of the original offer and the offeree becomes the offeror. Proper acceptance requires accepting the exact terms of the offer. This rule is known as: Group of answer choices Unequivocal Acceptance Rule Strict Performance Rule Mirror Image Rule Bargained-for Consideration Rule
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The rule you're referring to is known as the Mirror Image Rule. This rule requires that an acceptance must exactly match the terms of the offer for a contract to be formed. Any alteration constitutes a counteroffer, not an acceptance.
Is there anything else you need help with regarding contract law in Oregon?
Consideration has two parts: Group of answer choices Monetary exchange & Meeting of the minds Promise & Past consideration Something of legally sufficient value & Bargained-for exchange Preexisting duty & Promise to perform
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- Consideration in a contract has two parts:
- Something of legally sufficient value
- Bargained-for exchange
These elements ensure that both parties are providing something of value and that there is a mutual agreement.
Would you like more details on any specific area of contract law?
You have a valid contract in which a contractor agrees to build your house for $*,*. Three months later, the contractor demands an additional $*,* or else he will not finish building your home. If you agree to pay the additional $*,*, is this an enforceable contract? Group of answer choices No, because the contractor had a preexisting duty No, because it's an illusory promise Yes, because the homeowner consented Yes, because of past consideration
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In this scenario, the correct answer is:
- No, because the contractor had a preexisting duty.
A preexisting duty means that the contractor is already legally obligated to complete the house for the agreed-upon price of $*,*. Demanding an additional $*,* without providing any new consideration is not enforceable.
Is there anything more specific you'd like to know about this situation or any other legal matter?
Each state has a list of contracts that are required to be in writing. This is known as: Group of answer choices Admissibility of Contracts The Legality of Written Agreements The Statute of Frauds Judicial Recognition of Contracts
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The correct answer is "The Statute of Frauds." This legal principle requires certain types of contracts to be in writing to be enforceable. If you have more questions about contract law in Oregon, feel free to ask!
Unilateral mistakes are always granted legal relief. Group of answer choices True False
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The correct answer is False. Unilateral mistakes do not always grant legal relief. Courts typically require that the mistake be significant and that the non-mistaken party knew or should have known of the mistake.
Do you have any specific legal concerns or questions about contract law in Oregon that I can help with?
When fraudulent misrepresentation occurs, proof or injury is required when: Group of answer choices Seeking damages (money) Seeking rescission (equity) No remedy at law exists Proof of injury is always required
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When fraudulent misrepresentation occurs, proof of injury is required when:
- Seeking damages (money)
Proof of injury is necessary to claim damages because it shows that the plaintiff suffered a loss due to the misrepresentation. However, for rescission (equity), the contract can be voided without proof of injury, as the aim is to restore the parties to their original positions.
Do you have any specific concerns about fraudulent misrepresentation that I can help with?
Cormor Industries, LLC, has entered into an acquisition agreement with Valper Technologies, INC., whereby Valper Technologies, INC will purchase all of the assets of Cormor Industries, LLC. The agreement provides a provision that Cormor Industries, LLC, must have all of its assets free and clear of any liens prior to receiving any payment from Valper Technologies, INC. This type of provision in a contract is known as a: Group of answer choices Free Transfer and Title Condition Precedent Restraint on Trade Expediated Merger Clause
Case Rating: *
The correct answer is:
- Condition Precedent
A condition precedent is a provision in a contract that requires a specific event or condition to occur before a party is obligated to perform under the contract. In this case, Cormor Industries, LLC must have all assets free and clear of any liens before receiving payment.
Do you have any further questions about contract provisions or any other legal issues in Oregon?
When a party to a contract does not perform perfectly, but a court finds that the party substantially performed, the other party: Group of answer choices can rescind the contract and recover damages must continue with the contract, but can recover damages is discharged from their duty to perform under the contract must continue with the contract and cannot recover damage
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The correct answer is:
- must continue with the contract, but can recover damages
In cases of substantial performance, the non-breaching party must continue with the contract but can claim damages for the incomplete or defective performance.
Would you like more details about substantial performance or any other legal questions in Oregon?
Anticipatory repudiation is considered a material breach and thus the nonbreaching party can immediately sue for breach of contract. Group of answer choices True False
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True, anticipatory repudiation is considered a material breach, allowing the nonbreaching party to sue immediately for breach of contract.
If you have any further questions or need more information about contract law in Oregon, feel free to ask!
When "time is of the essence" is added to a contract: Group of answer choices Timing becomes a breach but not a material breach Timing becomes irrelevant Timing becomes a material term and thus can lead to a material breach Every term in the contract becomes material
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When "time is of the essence" is added to a contract, timing becomes a material term and thus can lead to a material breach. This means that the timely performance is crucial, and any delay can be considered a breach of the contract.
Do you have any specific concerns or questions about contract law in Oregon that I can help with?
When a contract contains a covenant not to compete that is overly broad, some courts will undergo: Group of answer choices Specific Performance Granting monetary damages Reformation Mediation
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Some courts may undergo Reformation to modify the overly broad covenant not to compete, making it reasonable and enforceable.
Do you have any other questions about covenants not to compete or other aspects of contract law in Oregon?
Courts will always order specific performance when a contract for services is materially breached. Group of answer choices True False
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False. Courts do not always order specific performance when a contract for services is materially breached. Specific performance is more commonly ordered for unique goods or property rather than services, as personal service contracts are difficult to enforce.
Do you have any other legal questions or need more information on contract law in Oregon?
When courts apply the following test, what is the court determining? (*) When the contract was entered into, was it apparent that damages would be difficult to estimate in the event of breach? (*) Was the amount set as damages a reasonable amount or excessive? Group of answer choices Conscionable or Unconscionable Void or Voidable Exculpatory or Nonexculpatory Liquidated Damages or Penalty
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The court is determining whether the specified amount in the contract is a Liquidated Damages or Penalty. Liquidated damages are enforceable if they are a reasonable estimate of actual damages at the time of contracting, while penalties are not enforceable because they are considered excessive.
Do you have any other questions regarding contract law in Oregon?
In a breach of contract suit, where there is very little to no economic injury, yet the court wishes to declare a rightful party on principal, the court will award what type of damage? Group of answer choices Punitive Damages Special Damages Nominal Damages General Damages
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In a breach of contract suit where there is very little to no economic injury, the court will typically award Nominal Damages. These damages recognize the breach and declare the rightful party without requiring significant monetary compensation.
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When Satisfaction is not performed pursuant to the terms of an Accord, the nonbreaching party: Group of answer choices Can only enter into a subsequent Settlement Agreement. Can only recover under the terms of the original contract. Can only recover under the terms of the Accord. Can recover under the terms of the Accord, or under the terms of the original contract.
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The correct answer is:
- Can recover under the terms of the Accord, or under the terms of the original contract.
This means the nonbreaching party has the option to enforce either the original contract or the Accord, depending on the situation.
Do you need more information on this topic or any other legal issue in Oregon?
When a party to a contract is intoxicated at the time the contract is entered, the required legal element of capacity will never be met. Group of answer choices True False
Case Rating: *
The correct answer to your question is False. An intoxicated party may lack the capacity to contract if the intoxication is severe enough to prevent understanding of the contract's nature and consequences. However, if the party still understands the terms and consequences, the contract may be considered valid.
Do you have any other specific questions about contract law in Oregon?