Question

Choose ONLY 6 of the following 9 terms listed as (a) through (i) below. (Do not answer more than 6.) For each term you select, (1) define the term, and (2) identify the particular area(s) of contract law in which it applies (i.e., contract formation, offer/acceptance, consideration, capacity, legality, genuineness of assent, Statute of Frauds, quasi-contract, or remedies/damages.) (The definition portions of your answers need not be more than one sentence for each term.)

(a)        promissory estoppel.

(b)        specific performance.

(c)        quantum meruit.

(d)        mirror image rule.

(e)        offeree.

(f)        objective theory of contracts.

(g)        option contract.

(h)        voidable.

(i)         mailbox rule.

Answer 1

(a) Promissory Estoppel: Promissory estoppel is the legal concept that an agreement is lawfully enforceable, even though a promisor has agreed to a pledge that depends upon it to the detriment of the promising. Promissory estoppel aims to prevent the promisee from arguing that the underlying promise should not be upheld or implemented legally.

Contract law generally specifies that a person must receive consideration for making a promise or a contract.

(b) Specific performance: It is an equal remedy in contract law, by which a court imposes an order requiring a party, for instance, to complete the execution of the contract, to perform a particular act. It is typically available in sales of land law but is usually not available if damages are a suitable alternative. It is most widely used in practical terms as remediation for land transactions, such as the selling of land in which the seller refuses to pass ownership. The explanation is that land is special and that the non-violator is not given any legal recourse once the contract has been violated.

(c) Quantum meruit: This shall be the measure of damage if an explicit agreement is mutually changed or not concluded by the implied consent of the parties. While the idea of quantum meruit is frequently confused with that of "unjust enrichment" at the detriment of one group, the two concepts are different.

A Quantum Meruit can be applied when there is a breached contract.

(d) Mirror image rule: It is a clear and absolute requirement for acceptance that an offer must be accepted without changes. The dealer is the master of his own offer. Trying then to accept the bid on different terms produces a counteroffer, which represents a denial of the initial offer.

Mirror image is often applied in the offer/acceptance of contracts.

(e) Offeree: The person/firm to whom expression of willingness of an agreement with underlying terms and conditions of an offer is sent.

In the contract law, the term offeree is mainly used under offer/acceptance.

(f) The objective theory of contracts: Objective contract theory means that a contract between the offeror and offeree is legally binding if an offer has been made and approved in the judgment of a reasonable individual not a party to the contract.

In contract law, this theory is mainly used for contract formation.