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    Contracts: Over I

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    El Sayed Abdelgawwad
    1. The document discusses key elements of contracts that are heavily tested on the CPA exam, including offer, acceptance, consideration, and the Statute of Frauds. 2. It explains that there are two sets of contract rules - common law and Uniform Commercial Code (UCC) - and test-takers must determine which applies based on if the contract involves sale of goods. 3. Remedies for breach of contract are discussed, including monetary damages, specific performance, liquidated damages, and anticipatory repudiation. Understanding contracts is important as the rules form a basis for other law topics on the exam.

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    Contracts: Over I

    Uploaded by

    El Sayed Abdelgawwad
    17 views2 pages
    1. The document discusses key elements of contracts that are heavily tested on the CPA exam, including offer, acceptance, consideration, and the Statute of Frauds. 2. It explains that there are two sets of contract rules - common law and Uniform Commercial Code (UCC) - and test-takers must determine which applies based on if the contract involves sale of goods. 3. Remedies for breach of contract are discussed, including monetary damages, specific performance, liquidated damages, and anticipatory repudiation. Understanding contracts is important as the rules form a basis for other law topics on the exam.

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    1. The document discusses key elements of contracts that are heavily tested on the CPA exam, including offer, acceptance, consideration, and the Statute of Frauds. 2. It explains that there are two sets of contract rules - common law and Uniform Commercial Code (UCC) - and test-takers must determine which applies based on if the contract involves sale of goods. 3. Remedies for breach of contract are discussed, including monetary damages, specific performance, liquidated damages, and anticipatory repudiation. Understanding contracts is important as the rules form a basis for other law topics on the exam.

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    © All Rights Reserved
    Download as RTF, PDF, TXT or read online from Scribd
    Download as rtf, pdf, or txt
    17 views2 pages

    Contracts: Over I

    Uploaded by

    El Sayed Abdelgawwad
    1. The document discusses key elements of contracts that are heavily tested on the CPA exam, including offer, acceptance, consideration, and the Statute of Frauds. 2. It explains that there are two sets of contract rules - common law and Uniform Commercial Code (UCC) - and test-takers must determine which applies based on if the contract involves sale of goods. 3. Remedies for breach of contract are discussed, including monetary damages, specific performance, liquidated damages, and anticipatory repudiation. Understanding contracts is important as the rules form a basis for other law topics on the exam.

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    122 MODULE 23 CONTRACTS

    CONTRACTS
    ferent under the UCc. Since the common law and the
    UCC rules have much in common, you will be learning
    contract law in the most understandable and efficient
    manner.
    Contract law is tested by multiple-choice questions.
    You need to know the essential elements of a contract
    because the CP A examination tests heavily on offer and
    acceptance. Also, understand that an option is an offer
    supported by consideration. Distinguish between an op-
    tion and a firm offer and understand how these are af-
    fected by revocations and rejections. You need to com-
    prehend what consideration is and that it must be bar-
    gained for to be valid. The exam also requires that you
    understand that "past consideration" and moral obliga-
    tions are not really consideration at all. You should have
    a solid understanding of the Statute of Frauds.

    Once a contract is formed, third parties can obtain


    rights in the contract. An assignment is one important
    way this can happen.

    If a contract is not performed, one of the parties may


    be held in breach of contract. Notethat the possible
    remedies include monetary damages, specific perfor-
    mance, liquidated damages, and anticipatory repudiation.

    Overview
    The area of contracts is very heavily tested on the
    CP A examination. A large portion of the contract rules
    serves as a basis for many other law topics; consequently,
    a good understanding of the material in this module will
    aid you in comprehending the material in other modules.

    It is important that you realize that there are two sets


    of contract rules to learn. The first is the group of
    common-law contract rules that, in general, apply to con-
    tracts that are not a sale of goods. Examples of contracts
    that come under common law are those that involve real
    estate, insurance, employment, and professional services.
    The second set is the contract rules contained in Article
    Two of the Uniform Commercial Code (UCC). The UCC
    governs transactions involving the sale of goods (i.e., tan-
    gible personal property). Hence, if the contract is for the
    sale or purchase of tangible personal property, the provi-
    sions of the UCC will apply, and not the common law.
    For every contract question, it is important that you de-
    termine which set of rules to apply. Fortunately many of
    the rules under the two sets are the same. The best way
    for you to master this area is to first study the common-
    law rules for a topic. Then review the rules that are dif-

    A. Essential Elements of a' Contract


    1. Offer
    1. Acceptance
    a. When offer and acceptance have occurred, an agreement is said to have been made
    3. Consideration
    4. Legal capacity
    5. Legality (legal purpose)
    6. Reality of consent
    a. Technically not a true element, but important to consider because may be necessary for enforce-
    ability of contract

    7. Statute of Frauds
    a. Not a true element, but each factual situation should be examined to determine whether it applies
    because certain contracts must be in writing to be enforceable, as explained later

    B. Types of Contracts

    1.Express contract-terms are actually stated orall:yor in writing •


    2. Implied contract-terms of contract not specifically given but some or all of terms are inferred from
    conduct of parties and circumstances- -
    3. Executed contract-one that has been fully performed .
    3. Executory contract-one that has@been fully performed by both patties
    4. Unilateral contract-o~ party gives promise for completion of requested act
    EXAMPLE: A promises to pay B $1,000 to cross the Golden Gate Bridge onfoot within one week. This is a unilateral
    offer. Once B does the act it is a unilateral contract.

    6. Bilateral contract-each party exchanges promises


    EXAMPLE: A promises to deliver lOO widgets to Bfor $1,000 and B promises to buy and pay for them.
    7. . Voidable contract--one that is enforceable unless party that has right pulls out of contract

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