What is the statute of limitations for oral contracts?
3 years
This is the time frame within which a party must bring a lawsuit for breach of an oral contract.
What is the statute of limitations for UCC contracts?
4 years
This applies to contracts for the sale of goods under the Uniform Commercial Code.
What is the statute of limitations for written contracts?
5 years
This is the time frame for bringing a lawsuit for breach of a written contract.
If a written contract is not signed by the party to be charged, what is the statute of limitations?
3 years
This applies when the contract lacks a signature from the party being held accountable.
When does a cause of action accrue in contract law?
When breach occurs
This is the point at which a party can initiate legal action for breach of contract.
True or false: Contracts can only be written.
FALSE
Contracts can be oral as long as they meet the necessary legal requirements.
What are the essential elements of a contract?
- Offer
- Acceptance
- Consideration
These elements must be present for a contract to be legally enforceable.
What constitutes a mutual explicit promise in contract law?
A promise to forbear from doing something
This type of promise can form a valid contract.
What is an offer in contract law?
Communication of willingness to enter into a contract
The offer must be directed toward a specific person or class of people.
What must an offer have to be enforceable?
- Definite and certain terms
- Identity of the offeree
- Subject matter
- Price
These terms allow a court to determine a remedy in case of breach.
What is required for land sale contracts?
- Identification of the land
- Price terms
These are essential for the enforceability of land sale contracts.
Are advertisements considered offers?
Usually not, but can be if they limit acceptance
Advertisements are typically invitations to make offers.
What is the doctrine of mutual mistake?
Court may give relief for innocent omission or insertion of a material stipulation
This applies when both parties intended something different than what was included in the contract.
True or false: Contractual ambiguities are construed against the party who drafted the contract.
TRUE
This principle protects the party that did not draft the ambiguous terms.
What does the statute of frauds require?
- Be in writing
- Set forth essential terms
- Signed by the party being sued
These requirements apply to certain types of contracts to be enforceable.
What types of contracts fall under the statute of frauds?
- Sale of goods for $500 or more
- Interests in LAND
- Terms that cannot be performed within 1 year
- Surety agreements
- Contracts made by estate representatives
- Marriage
These contracts must meet specific writing requirements to be enforceable.
What is the Virginia distinction regarding contracts to devise real property by will?
Enforceable despite the Statute of Frauds under certain conditions
Conditions include certainty of terms and acts of part performance.
What are the essential terms of a contract?
- Identity of parties
- Description of subject matter
- Terms necessary to make contract definite
These terms vary based on the type of contract.
What is an option contract?
Contract promising to keep an offer open
If consideration is given, the offer is irrevocable for the stated time.
What is a merchant’s firm offer?
Promise to keep an offer open in a signed writing
The offer remains open for the stated time or a reasonable time, not exceeding 3 months.
What is the mailbox rule?
Acceptance is effective when put in the mailbox
This rule does not apply to rejections or revocations.
True or false: A minor can void a contract upon reaching 18.
TRUE
The contract will be unenforceable if not honored.
What happens when one party performs a service at the insistence of another without an enforceable contract?
Law implies a contract for reasonable compensation
This is to ensure fairness when services are rendered.
What does the parol evidence rule limit?
Proving a written contract included terms not reflected in writing
It restricts the introduction of prior or contemporaneous statements to alter the contract’s terms.
