REG contract-law coverage for formation, defenses, performance, remedies, and special contract types.
This chapter covers the contract framework tested in REG, from valid formation through defenses, performance issues, and remedies. The exam usually rewards disciplined issue spotting: determine whether a contract exists, whether a defense applies, and what remedy follows.
Contract questions should be answered in order. Formation comes first, then defenses, then performance or discharge, and only then remedies or special contract rules.
| Contract issue | First question | Common REG trap |
|---|---|---|
| Formation | Was there offer, acceptance, consideration, and required capacity or form? | Discussing breach before deciding whether a contract exists. |
| Defenses | Does fraud, mistake, duress, illegality, or another defense prevent enforcement? | Treating a signed agreement as automatically enforceable. |
| Performance and discharge | Did a party perform, breach, become excused, or satisfy the obligation another way? | Confusing a duty to perform with the remedy for nonperformance. |
| Special contract settings | Do sales, employment, online terms, or statute-specific rules modify the result? | Applying a general rule when a special contract context controls. |
| Step | REG question to ask | Legal effect |
|---|---|---|
| 1. Test formation | Was there offer, acceptance, consideration, capacity, legality, and any required writing? | No remedy analysis is useful unless an enforceable agreement exists. |
| 2. Check defenses | Does fraud, mistake, duress, undue influence, illegality, incapacity, or statute of frauds affect enforcement? | A contract can appear complete but still be void, voidable, or unenforceable. |
| 3. Determine performance status | Did the parties perform, substantially perform, breach, or become excused? | The status of performance determines whether relief is available. |
| 4. Select the remedy | Is the proper result damages, specific performance, rescission, restitution, or no recovery? | Remedies should match the breach and legal context. |
| 5. Apply special rules | Does a sale, employment, online, agency, or statutory context change the answer? | REG distractors often rely on applying a general rule where a special rule controls. |
| Checkpoint | Ask before choosing an answer | Legal effect |
|---|---|---|
| Formation elements | Are offer, acceptance, consideration, capacity, legality, and required writing present? | Contract remedies do not matter unless an enforceable agreement exists. |
| Defense status | Does fraud, mistake, duress, illegality, incapacity, unconscionability, or statute of frauds affect enforcement? | A signed agreement can still be void, voidable, or unenforceable. |
| Performance status | Did a party perform, substantially perform, breach, anticipatorily repudiate, or become excused? | Performance status controls whether relief is available. |
| Remedy fit | Do damages, specific performance, restitution, rescission, or no recovery match the breach? | Remedies should follow the legal harm and contract type. |
| Special context | Does a sale, employment, online term, agency relationship, or statutory rule modify the general answer? | Special contract settings often override broad common-law assumptions. |