Module 26 Cards.txt

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  1. Common Law contracts include:
    • - Real estate
    • - Services
    • - Employment
  2. Common law contracts are governed by:
    - Majority rules
  3. Six elements of a contract (OACPLC):
    • - Offer
    • - Acceptance
    • - Consideration
    • - Proper form
    • - Lawful object
    • - Two or more Competent parties
  4. Offers have 3 elements:
    • - Must be seriously intended
    • - Must be communicated by words or actions
    • - Must be definite in terms (including price)
  5. Advertisements and price quotes are usually:
    - NOT offers, just invitations to deal
  6. Acceptance have 3 elements:
    • - Must be unconditional (comply with all offeror's terms or a counteroffer)
    • - Must be communicated by words or actions
    • - Can only be accepted by the party to whom it is made
  7. The following are ways to end offers only when they are received:
    • - Counteroffers
    • - Rejections
    • - Revocations
  8. Option contracts are:
    - Irrevocable, since the party pays consideration to keep the offer open
  9. In UCC sales Firm Offers are irrevocable without consideration if made by:
    - Merchant, in writing and guaranteeing the offer will be held open
  10. The following events end offers immediately:
    • - Death
    • - Insanity
  11. Under the mailbox rule, an acceptance is valid when sent if properly addressed and:
    • - Offeree uses the express means of communication (offeror said to use)
    • - Or any reasonable and faster means
  12. A bilateral contract is:
    - A promise for a promise
  13. A unilateral contract is:
    - A promise for an act (a reward)
  14. Consideration is:
    • - Giving up of a legal right
    • - must be present for both parties
    • - must be mutually bargained for and legally sufficient
    • - there is no requirement that consideration be of equal value
  15. Two cases where consideration is not present:
    • - Past consideration
    • - No consideration when party is already contractually obligated to perform
  16. Promissory Estoppel is present when:
    - Someone relies on a promise that lacks consideration and changes their position.
  17. An illegal contract is:
    - Void and unenforceable in court
  18. Six types of contracts requiring some kind of writing to be enforceable (GRIPE + MARRIAGE)
    • - Goods for $500 or more (must contain quantity)
    • - Real estate contracts
    • - Contracts Impossible to perform in 1 year
    • - Promise to answer for the debt of another (surety/guarantor)
    • - Executor's promise to be liable for the debt of an estate
    • - Marriage contracts
  19. Exceptions to the statute of frauds where no writing is required for GRIPE+M contracts:
    • - If contract is fully performed by both parties
    • - Contract impossible to perform in one year and one party has fully performed
    • - Oral real estate deals if the buyer is in possession and has made a substantial down payment or renovations.
  20. If a minor enters in a contract, they may disaffirm the contract when:
    • - While being a minor
    • - At a reasonable time after becoming an adult
    • - By returning what they possess
    • - Cannot disaffirm a real estate while a minor, but can do so a reasonable time after becoming an adult
    • - If lied about age, can disaffirm the contract but will be liable for torts
  21. Insane individuals can disaffirm contracts, but once adjudicated:
    - All future contracts are void
  22. Most mistakes in a contract have no effect, except:
    • - Mutual mistakes of a material fact (void contract)
    • - Material unilateral mistakes, one party may disaffirm only if the other party knew or should have known about the mistake.
  23. Duress is:
    - Forcing someone into a contract by threat of violence, economic destruction or criminal action. Makes contract voidable.
  24. Undue influence is:
    - Using a position of love, confidence, or affection to overcome another's free will in contract. Makes contract voidable.
  25. If fraud is present in a contract, an injured party can chose to:
    • - Rescission of contract (cancellation and restoring former positions)
    • - Tort remedy (accept contract and sue for money damages)
    • - IF a SALES contract, party may rescind and sue for money damages.
  26. When all fraud elements are met EXCEPT Scienter or Reckless disregard, there is:
    - Innocent misrepresentation
  27. When there is Innocent Misrepresentation, the injured party may:
    - Only rescind, not sue for money damages.
  28. Evidence inadmissible under the Parole Evidence Rule includes:
    • - Oral or written who contradicts the written contract
    • - Concerning anything that took place prior or at the time of the writing of the contract
  29. Admissible evidence under the Parole evidence rule includes (FAME):
    • - Any evidence that shows Fraud or illegality
    • - Any evidence after the writing
    • - Any evidence of Mistakes
    • - Any evidence to explain the writing or clear up ambiguities
  30. Third party beneficiaries include:
    • - A donee beneficiary (can only sue original promisor)
    • - Creditor beneficiary (may sue any party if there's a breach)
    • - Incidental beneficiaries (no rights under contract)
  31. Four types of contracts cannot be assigned or delegated (PIPI):
    • - Personal service contracts calling for special skill
    • - If it would materially Increase risk or alter performance
    • - If Prohibited by contract law
    • - Cant assign Insurance contracts
  32. When a contract is assigned, the assigned gets:
    - All rights and liabilities of the assignor, but assignor remains liable
  33. If a buyer assumes a mortgage, the buyer/seller:
    - Are both liable for the mortgage
  34. If a buyer purchases "subject to" a mortgage, legally:
    • - The buyer is not liable for the mortgage
    • - Seller is only one liable for the mortgage
  35. Contract duties can be discharged by:
    • - Novation
    • - Material breach (such as prevention of performance, anticipatory breach, doctrine of substantial performance)
    • - Impossibility of performance (death of party or destruction of subject matter)
    • - Accord and Satisfaction
    • - Statute of limitations (does not discharge, but percents judicial remedies=
  36. Statue of limitations are:
    • - For contracts usually 6 years from breach
    • - For sales 4 years from breach
  37. An anticipatory breach is when a party:
    - States they will not perform before the time of performance
  38. The Doctrine of Substantial Performance involves:
    • - An unintentional but minor breach
    • - Breaching party may still recover but subtract damages for the minor breach
  39. Contract remedies include:
    • - Compensatory Damages
    • - Specific performance
    • - Liquidated damages
    • - Recission
Card Set:
Module 26 Cards.txt
2013-01-07 10:20:53
YAEGER Reg Mod 26

YAEGER Reg Mod 26
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