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REG EXam > business Law > Flashcards

business Law Flashcards

0
Q

A contract that is a promise in exchange for a promise

A

Bilateral contract

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1
Q

When a contract is crested by accepting performance of an act it’s a

A

Unilateral contract

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2
Q

The four requirements of a valid contract

A

Offer and acceptance
Consideration
Legal capacity
Legal purpose

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3
Q

Real property interests and leases are governed under

A

Common law

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4
Q

The act of acceptance is making a promise in exchange for

A

The offer

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5
Q

A contract unless irrevocable is terminated upon the

A

Death of the offer or

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6
Q

If the means of delivery and time is specified and it is not meant then a

A

Counter offer has been issued

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7
Q

Advertisement is not

A

An offer but invitation to trade

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8
Q

Common law contracts like window repair must have a

A

Price listed

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9
Q

Uniform commercial Code (UCC) a sale of goods is a valid contract without

A

Stating a price

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10
Q

Consideration is required for a real estate contract

A

Only UCC contracts of sales of goods can be modified without new consideration

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11
Q

Modification is invalid if it’s a contract for services and new consideration

A

Is not given

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12
Q

Evidence about things taking place after a contract is signed is

A

Admissible

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13
Q

Past actions cannot count as considerations for

A

Current promises

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14
Q

Consideration must be

A

Legally sufficient

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15
Q

A promise to do something new or something not already obligated to do is

A

Consideration

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16
Q

Contracts not performed within 1 year are not enforceable unless they

A

Are in writing

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17
Q

The parole rule allows

A

Evidence fir subsequent agreements

Complete and unambiguous written contracts and prohibits any evidence that would modify or alter the contract

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18
Q

Common law of frauds does not apply to contracts performed in one year because

A

They are not required to be in writing

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19
Q

Under guaranty contracts for the statutes of frauds to be enforceable the guarantor must be signed

A

In writing

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20
Q

Under the statue of frauds the contract terms must be stated in more than one

A

Document

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21
Q

The oral contract is enforceable under the statue of frauds if the amount is under

A

$500

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22
Q

When info is left out a person may win if get sue for

A

Breach of contract

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23
Q

A minor had a reasonable period of time to dis affirm a contract

A

After he reaches majority

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24
Q

If there is a immaterial unilateral mistake the contract is till

A

Valid by both parties

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25
Q

If the mistake is known by the buyer the contract would be void able to the buyer and

A

Enforceable against the seller

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26
Q

Duress are threats that overcome one’s free will by

A

Inducing that person to assent to the contract

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27
Q

Void able contracts occur when a contract is created prior to a court determining a person as

A

Incompetent

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28
Q

All future contracts are void on a person is declared

A

Incompetent

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29
Q

To have the right to rescind the other side must known of the error or the error must be

A

Large that the other side should reasonably have known of the error.

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30
Q

Void able contracts are when you are free to accept or

A

Rescind

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31
Q

Physical threats makes a contract

A

Void

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32
Q

Under a personal services contract a person may be discharged of a party’s duties if there is

A

Illegality of services provided

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33
Q

An action that would generally discharge the performance is

A

Material breach of contract

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34
Q

If a person refuses to close a sell of property ones agreed to pay the amount at closing the buyer is entities to

A

Compensatory damages and specific performance

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35
Q

The statute of limitations is set to 4 years a party is limited to wait before bringing a lawsuit. For a breach of contract the statute of limitations is at the time of

A

Breach

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36
Q

When the statute if limitations expired on a contract it

A

Bars access to judicial remedies

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37
Q

Accord is the agreement to accept a different

A

Performance

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38
Q

The following conditions may be in contracts

A

Precedent
Subsequent
Conditions

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39
Q

A rescission is the undoing of a

A

Contract. Both parties are returned to their original positions

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40
Q

One criteria for a valid assignment of a sales contract to a third party is

A

Not materially increase the other party’s risk or duty

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41
Q

A third party beneficiary who is an incidental beneficiary cannot sue because they are not the

A

Primary beneficiary

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42
Q

A creditor beneficiary may sue if he is unable to

A

Satisfy the debt

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43
Q

When a creditor beneficiary needs to sue the parties who would be liable are

A

The parties involved.

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44
Q

A contract is assigned unless the contract or law prohibits assignment or the assignment would alter or materially

A

Increase the risks or duties of the obligor.

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45
Q

Malpractice contracts may create new or

A

Increase risks since it’s based on a faiths reputation type of practice past performance

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46
Q

Executory contract is when the contract is not

A

Fully performed

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47
Q

When the mailbox rule is in place it is effective when

A

Sent

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48
Q

The statute of frauds requires all contracts of $500 or more be

A

In writing

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49
Q

A service is not covered under the statue of frauds and modification can be accepted if there is

A

Consideration

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50
Q

Only contracts for the sale of goods have a minimum of $500 or more to fall under the statute of frauds and be

A

In writing

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51
Q

Statue of frauds covers contractors that cannot be performed within

A

One year of the date they are made

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52
Q

Sale of Realty falls under the statute of frauds however if only one person signs the contract

A

It is enforceable against that person.

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53
Q

An agreement supported by consideration between two or more persons with competent capacity for legal purpose is a

A

Contract

54
Q

UCC article 2 is

A

Sales

55
Q

Common law is the view of

A

Majority of the states

56
Q

The UCC is a form of codified commercial law that was developed by

A

Business people lawyers and legal experts

57
Q

The UCC is codified in statutory form and common law is the law developed

A

In judicial decisions on contracts

58
Q

An act of a legislature that declares proscribes or commands something a specific law expressed in writing is a

A

Statute

59
Q

Common law requires more detail than UCC

A

formation terms and damages

60
Q

If the purpose of the contract is primarily for the sale of goods it’s given under UCC. If the primary purpose is for the installation of goods it’s governed by

A

Common law

61
Q

Common law applies to service and

A

Real estate contracts

62
Q

Real estate contracts include

A

Leases mortgages liens and contracts for the sale and purchase of real estate

63
Q

A contract formed by oral and/or written words are

A

Express contract

64
Q

A contract formed at least in part based on the conduct of the parties or based on the factual circumstances

A

Implied or implied in fact contract

65
Q

A contract imposed by the courts or by law when some performance has gone forward.

A

Quasi contract or implied in law contract

66
Q

A contract when both sides make a promise. A promise is made by one party to the contract in exchange for a promise from the other party

A

Bilateral contract

67
Q

A contract in which one side makes a promise in exchange for an action or performance from the other side.

A

Unilateral contract

68
Q

A contract that had been fully performed by both parties to the contract

A

Executed contract

69
Q

A contract that has not yet been fully performed is

A

Executory

70
Q

The contract has been formed legally and meets the necessary requirements for formation

A

Valid contract

71
Q

A contract that lacks legal purpose or is in violation of the law

A

Void

72
Q

A valid contract that can be set aside because one party has protection under the law and the right by choice to be relived of the liability

A

Void able contract (due to fraud or lack of capacity)

73
Q

An otherwise valid contest that cannot be enforced because of statutory or other legal defense

A

Un enforceable

74
Q

Party who makes an offer is an

A

Offer or

75
Q

Party who accepts an offer is the

A

Offeree

76
Q

Requirements to firm a contract is

A

Offer acceptance consideration no defenses

77
Q

Advertisements are not offers but

A

Invitations to make an offer

78
Q

Definite terms requirements are

A

Identification of parties, subject matter, price stated, and time of performance

79
Q

UCC Article 2 only requires identification of the

A

Subject matter and quantity

80
Q

Revocations are effective when received and must be received

A

Prior to acceptance by the offeree

81
Q

Options are when the offeree gives consideration in exchange for the offerors promise to keep the offer open for a specific period of time. Options criteria are

A

Offerors can’t withdraw offer during the option period

Offeree has the right to accept the offer during the period

Offeree rejection does not end the option period

82
Q

Firm offers (merchants offer)are the UCC article 2. The requirements are

A

In writing
Made by a merchant
States it will keep it open for a period of timebut not max 3 months (more than 3 requires consideration)
Offeree holds an Irrevocable offer when elements are present
If a non merchant common law applies

83
Q

Counteroffer general offer is a form of

A

Rejection

Common law requires a mirror image rule

84
Q

Conditional acceptance is a

A

Counter offer

85
Q

Termination by law includes

A

Death or insanity except options
Destruction of the subject matter unless it’s fungible goods or commodities
Illegality of the subject matter

86
Q

Bilateral offer acceptance must be the following

A

Absolute unequivocal unconditional and communicated to the offerors

87
Q

For non merchants if there is a definite statement of acceptance followed by some additional terms a contract is formed

A

Without the additional terms

88
Q

For merchants the additional terms are included except as follows

A

Material (waiver of warranties)
Limited to these terms
Offerors Objects within a reasonable time

89
Q

Only in acceptance is an acceptance made at the time it is

A

Sent

90
Q

Silence does not constitute

A

Acceptance

91
Q

Doing what you are free not to do and not doing what you are free to do is

A

Legal detriment

92
Q

Consideration must be the following

A

Something of legal value
Legally sufficient amount (adequate consideration)
Bargained for exchange

93
Q

Pre-existing duty consideration is one that exists under a

A

Valid contract or by law

94
Q

Exceptions to the per existing duty rule are

A

Rescission and new contract
UCC modification for contracts for the sale of goods
Unforeseen hardship

95
Q

Accord is the agreement to

A

Waive legal rights

96
Q

Satisfaction is the actual payment

A

Of the amounts agreed to in the accord

97
Q

Liquidated debts are

A

The amount due and owed is cleared to both parties

98
Q

Unliquidated debts are the parties acknowledge that

A

The money is due and owed but they disagree on the amount

99
Q

A promise to pay for past performance is not

A

Consideration

100
Q

A legal principle that bars a party from denying or alleging a certain fact owing to the party’s previous conduct allegation or denial

A

Estoppel

101
Q

A promise that induces another party to rely on the promise and results in the party materially changing their position stops the other party from refusing to honor that promise based on a claim of no valid consideration

A

Promissory estoppel

102
Q

The statue of limitations under UCC is

A

4 years from the time contract is formed or from the time of the breach

103
Q

Types of contracts that should be in writing under the statue of frauds are

A

Guaranty of debt contracts
Contracts involving an interest in real property
Contracts impossible to perform in one year
Contracts for the sale of goods priced at $500 or more
Promises of executors for personal liability for debts of the estate

104
Q

A person who guarantees to pay for someone else’s debt if he or she should default on a loan obligation

A

Guarantor

105
Q

Exception to the written requirement is partial performance where

A

Payment of some or all the purchase price has been made.
The buyer is the possession of the land by living there or proceeding to develop it
The buyer made valuable improvements

106
Q

Merchants confirmation if two merchants have an oral agreement that must b in writing the the writing is met by

A

A confirmation memorandum

107
Q

Exemptions to the UCC statute of frauds is

A

Merchants confirmation memo
Special ordered goods
Admission under oath
Performance by buyer

108
Q

Parol evidence protects from the following

A

Prior negotiations, prior agreements, contemporaneous oral agreements

109
Q

Types of defenses for formation are

A 
Mistake
Fraud or misrepresentation
Duress
Undue influence
Illegality
110
Q

Minors can do the following

A

Dis affirm at any time before reaching majority and for a reasonable time thereafter.

When dis affirming show intent and return any consideration derived from the contract the minor still possess or controls

The minor is entitled back his/her consideration and cannot be held further.

111
Q

Exception of a minors right to dis affirm are

A

Item is a necessity (food clothing shelter)
In value of what the minor is accustomed to (standard of living)
Not under the care of a parent or guardian

112
Q

Ratification is when a contract is affirmed after

A

Reaching the age of majority (fully liable)

113
Q

Contracts of a mentally incompetent person are void able during the period of

A

Incompetency and for a reasonable period of time after gaining competency. Must return consideration to avoid liability

114
Q

If court deem person incompetent all contracts are

A

Void by legal guardian

115
Q

Unilateral mistake is binding on the mistaken party unless

A

The other party knows or should know of the mistake

The mistake is material and obvious. If immaterial it’s still binding

There is an error due to mathematical calculation (inadvertently) not gross negligence

116
Q

Bilateral mutual mistake is not enforceable against the parties if it relates to

A

Identity, existence, or quantity go the subject matter. Defense of mistake

117
Q

Innocent misrepresentation the damages is limited to

A

Recission

118
Q

If deception of a material fact causes one party to b deceived and it’s intentional the other party is entitled to

A

Damages or can rescind the contract. Fraud on formation can result in punitive damages

119
Q

Undue influence contracts can be

A

Void able

120
Q

Physical force or threats
Threats to disclose private info
Economic pressure
Are examples of

A

Duress

121
Q

Contracts in violation do statutes are

A

Void

122
Q

Types of illegal contracts are

A

Usury- charging a higher interest rate than permitted by law.

Gambling contracts

Licensing statutes ( if purpose if for unlicensed person to regulate public welfare)

123
Q

Unconscionable contracts
Exculpatory clauses
Contracts in restraint of trade

Are all contracts

A

Contrary to public policy

124
Q

Types of conditions for performance are

A

Precedent
Subsequent
Concurrent

125
Q

Something that must be present or occur before a party has a duty to perform is a

A

Precedent

126
Q

A condition subsequent is something that must be present or occur after a duty to perform has arisen

A

Subsequent

127
Q

The duty to perform at the same time is

A

Concurrent

128
Q

Discharge by failure of conditions

A

If the condition precedent does not occur.

129
Q

Discharge by agreement or part of action is

A

Release, waiver, and mutual recission

130
Q

Action of breach of a construction contract would begin at the date

A

The contract is breached

131
Q

Fraud in the inducement makes a contract

A

Void able

132
Q

A valid assignment of a sales contract to a third party is the assignment must

A

Not materially increase the other party’s risk or duty

REG EXam (8 decks)

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