Business Law part two (second half of the semester) Flashcards
A written instrument in a special form, sealed, delivered, and used to pass the legal title of real property from one person to another?
A Deed
When you own less then full property value (I.E. If the city has a railroad that runs through your property), and is also considered the inverse property owers right.
An Easement
A record of real estate deeds or other land titles that is maintained by a local government official. The register of deeds will be used in conjunction with a grantor-grantee index that lists the owner of record and any transfers of property.
Registry of Deeds
the process of retrieving documents evidencing events in the history of a piece of real property, to determine relevant interests in and regulations concerning that property.
ATitle Search
What are you looking for when doing a title search?
1) A clear title
2) Encumberances
Public laws that govern the landowners interest in adoption?
Zoning
Something that is owned or done previous to zoning is considered?
Grandfathered
What is the term for the person who has the benefit of an easement?
Dominant
What is the term for the perosn who has the burdon of an easement?
Servient
Real Estate with an easement on it is considered?
Subprime Real Estate
This is the term used for ownership of the whole bundle of rights
Fee Simple Absolute
The person who grants property is called the?
Grantor
The person who gets the property is called what?
The Grantee
On Exam: “ If a granter gives away real estate the that person now has what?”
A Life Estate
When a person is given A Life Estate, how long is does it belong to them?
Until they die
When a Life Estate goes back to the Grantor (due to a death), what is it called?
A Reversionary
On Exam: If someone forget’s to put what type of tenany is applicable in their deed what type does it intail by default?
Tenants in Common
On Exam: If someone bought a house during WWI in cash, and it stayed in the family for 80 years, then what has never been performed?
A Title Search
What is the private way to enforce use of property?
Conditions and Covenants
What four things should you worry about when starting a business?
1) Name
2) Copyright
3) Ownership
4) Liability
5) Legal Forms (Proprietorship, Corportation, Partnership etc…)
What is the simplest form of business?
Sole Proprietorship
What is the 2nd Simpliest form of business?
A Partnership
What are the forms of doing business?
1) Sole Proprietorship
2) Partnership
3) Joint Venture
4) Corportation
5) Subchapter S Corporation
6) Limited Liability Corporation
On Exam: True or False? “ A Partnership needs to be in writing?
False
This should be included in a business contract in case of the death of an owner, and allows the other owner(s) to buy the other’s share?
A Buyout Agreement
What are 3 main factors of an organization?
1) Control
2) Taxes
3) Liability
On Exam: “What is the two types of partenrships and what is the difference betweent the two?
1) Limited Partnership - No Control
2) General Partnership - Can Control
What is the main reasons to incorporate?
1) A Corporation is it’s own entity
2) You are only liablie for your share
What is it called when you have two or more people for a single or limited purpose?
A Joint Venture
On Exam: “Does there need to be more than one person in an organization?
No
What is the best way to avoid paying for a lawsuit?
Insurance
On Exam: What is it called when someone cannot claim a corporate liability for an action?
“Piercing the Corporate Veil”
On Exam: What is the difference between a Subchapter S Corporation and a Standard Corporation?
1) SubChapter S Corporations only get taxed once
2) SubChapter S Corporations Can only have up to 35 employees
What is the downside of a Standard Corporation?
You Have to pay double taxes
True or False: Corporations are seperate entities?
True
Who owns a corporation?
Shareholders, and the Controling Shareholder
Who owns an L.L.C.?
Members
What are the basic governing documents of a corporation?
The Articles Of Incorporation
On Exam: What are the rules for operating a corperation or other organization?
Bylaws
On Exam: What is the basic governing document of a corporation?
The Articles of Incorporation
What is found by conducting a “Name Check”?
1) Who are the Shareholders
2) Who is the
a) President
b) Treasurer
c) Clerk
When the President, Treasurer and Clerk give permission to sign coporate documents, they are granting?
Corporate Authority
What is the basic meaning of a contract?
What are the elements of a contract?
Must be:
1) an Agreement
2) Bargained for Consideration
3) Two parties of legal age ( and not inpaired by drugs or insanity)
4) For a legal purpose (Can’t be illegal)
What is “Bargain for Consideration”?
Someone has to give something up of value or do something
What are the two types of contracts?
1) Bilateral
2) Unilateral
What is a Bilateral Contract?
A Promise for a promise (“I will”)
What is a Unilateral Contract?
A Promise for an Act (“if you come I will”)
What is the only way to accept a unilateral Contract?
To do the act specified
For “Bargain for Considration” what must the consideration have?
Value
This type of contract has no legal effect, and confers no rights or duties?
A Void Contract
That which is valid until one party, who has the power of avoidance. exercises such power?
A Voidable Contract
Is a contract signed by a minor is “Voidable” by the minor?
Yes, if the contract is not for necessities (Rent, Food, Healthcare)
True or False: If a car is bought by a minor the dealer can void the contract but the minor can’t?
False, The dealer can’t, but the minor can (because it is not a necessity)
What are the two sources of contract law?
1) Judge Made
2) Uniform Commercial Code
On Exam: What does Uniform Commerical Codes Cover?
The Sale of goods over $500
This is not a true contract, and does not have the consent of both parties?
A Quasi Contract
What does Quantum Meruit mean it latin?
“As Much as He Deserves”
This is the remedy used to avoid the unjust enrichment of one party at the expense of another, usually in association with quiasi-contract?
Quantum Meruit
Whatare the legal remedies for breach of contract?
1) Nominal
2) Compensatory
3) Consequential
4) Punitive
On exam: “Punitive damages are often awarded for breach of contract?”
False
Do people usually sue of nominal damages?
No
If A promises B that he can do a job on sat for $700 and doesn’t show up. But B gets C to do it for $800, how much does A owe B?
$100 Compensatory Damages
This type of damages must be unique and foreseeable, and are only available if the other party knew of the special circumstances?
Consequential Damages
A fixed sum agreed on between the parties of a contract to be paid as ascertained damaged by the party who breaches the contract (if the sum is excessive, the courts will declare it to be a penalty and unenforcable?
What are the steps of buying/selling a house?
1) Purchase and Sale agreement
2) Need to put down a deposit
3) Must decide beforehand “agreed upon damages”
What are the two types of remedies?
1) Legal
2) Equitable
What type of remedy is usually used in contract cases?
Legal (money)
What are the three types of equitable remedies?
1) Specific Performance
2) Rescission
3) Restitution
This type of equitable remedy is used when the object in the contract is unique, usually employed in real estate and selected persaonal property sales contract settings-loss is not calculated in terms of money damages?
Specific Performance
This type of equitable remedy is used if the contract was made based on mistake or fraud, a court in equity may grant this?
Rescission
This equitable remedy is used after rescission, and parties must return any benefit?
Restitution
Equitable remedy where Parties are put back into the legal position they were in BEFORE the contract was created?
What is the basic definition of an “agreement”?
Mutual Assent
On exam: T/F For an agreement to be made, the current theory of contracts is the subjective theory of the minds?
False, it is the Objective theory
For a mutual assent to be attained there must be a?
An Objective meeting of the minds
What must be made and accepted to confirm a contract?
An offer?
Who makes the offer?
The offeror
Who recieves the offer?
The offeree
an offer is made for a contract what must be made before the contract is confirmed?
an Objective Acceptance
This is a “deciding factor” in a contract?
A Material Term
This is when the courts fill in missing infromation (except for quantitiy)?
Gap Filling
On Exam: If someone says “I’ll buy your widgets for $.25 a piece, and I’d like to have them by friday” what is missing?
The Quantity
If there is no meeting of the minds then the contract is ________
Void
For gap filling, why won’t the courts fill in quantity?
Because the court has no reasonable baises to fill in the the quantity
Who is the only person who can accept an offer?
The Offeree
How do you make a contract inrevokable for a period of time?
Make an Option Contract
What is included in an option contract?
A bargain for consideration not included in the initial price
What don’t courts consider with a Bargain for Consideration?
Monetary Value
In an option contract, if you offer something, and the offeree agrees not to take other offers, it is called a?
Bargain for Consideration (Legally binding)
What are the 2 elements of Bargain for Consideration?
1) Legal Benefit
2) Legal Detriment
If you don’t like the results of a will you can?
Contest
Under what grounds can you contest a will?
1) Capacity
2) Duress
On Exam: When a contract is based on factors beyond control it’s
a) Enforceable
b) Not-Enforceable
c) Void
d) Voidable
a)Enforceable
On Exam: When a a person making the promise is in control, the contract is:
a) Voidable
b) Enforceable
c) Void
d) Not-Enforceable
d) Not Enforceable
Why is a contract that is in within the control of the person making the promise not-enfoceable?
Because there is no Bargain for Consideration (legal detriment)
On Exam: 2 things that seem Illusory (but are not) are?
1) Requirements and Outputs
2) Act in “good faith”
On Exam: If someone made a contract that said “All the clams I need I’ll buy from you” it would be considered a?
Requirements Contract (enforeable)
On Exam: If someone made a contract that said “I’ll sell you all the clams I get” it’s called a?
Outputs Contract (enforceable)
