Chapter 14 Flashcards
A state statute that requires certain types of contracts to be in writing
Statute of Frauds
A contract that has not been fully performed by either or both sides
executory agreement
an act that cancels a contract
rescind
The land itself, as well as buildings, trees, soil, minerals, timber, plants, crops, fixtures, and other things permanently affixed to the land or buildings
real property
An interest in real property given to a lender as security for the repayment of a loan.
mortgage (deed of trust)
The transfer of the right to use real property for a specified period of time.
lease
An interest in real property for a person’s lifetime; upon that person’s death, the interest will be transferred to another party.
life estate
A right to use someone else’s land without owning or leasing it.
easement
A rule stating that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing
one-year rule
A promise in which one person agrees to answer for the debts or duties of another person. It is a contract between the guarantor and the original creditor.
guaranty agreement
In a guarantee situation, the contract between the debtor and the creditor, which the guarantor has guaranteed to pay.
original contract (primary contract)
A person who agrees to pay a debt if the primary debtor does not.
guarantor
An exception to the Statute of Frauds that states that if the main purpose of a transaction and an oral collateral contract is to provide pecuniary benefit to the guarantor, the collateral contract does not have to be in writing to be enforced.
main purpose exception (leading object exception)
Real estate agents’ contracts to sell real property for another party, which are covered by the Statute of Frauds and must be in writing to be enforceable.
agents’ contract
A rule stating that an agent’s contract to sell property covered by the Statute of Frauds must be in writing to be enforceable.
equal dignity rule
A contract entered into prior to marriage that specifies how property will be distributed upon the termination of the marriage or death of a spouse
prenuptial agreement (premarital agreement)
establishes Statutes of Fraud for contracts for the sale and lease of goods
Uniform Commercial Code (UCC)
A section of the Uniform Commercial Code (UCC) stating that sales contracts for the sale of goods priced at $500 or more must be in writing.
Section 2-201(1) of the Uniform Commercial Code (UCC)
If the contract price of an original sales contract is below $500, it does not have to be in writing under the ______________
UCC Statute of Frauds
A section of the Uniform Commercial Code (UCC) stating that lease contracts requiring payments of $1,000 or more must be in writing
Section 2A-201(1) of the Uniform Commercial Code (UCC)
An equitable doctrine that allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice.
part performance
The combination of several writings to form a single contract.
integration
Integration made by express reference in one document that refers to and incorporates another document within it.
incorporation by reference
A doctrine that permits the formation of a contract if several documents are somehow physically attached to each other (e.g., in an envelope). The contract that is created consists of the terms of the separate documents.
implied integration
A section in many contracts that defines many of the words and terms used in the contract.
glossary
Rules applied by courts in defining ordinary words, technical words, specific terms, and other words used in contracts.
standards of interpretation
Any practice or method of dealing that is regularly observed or adhered to in a place, a vocation, a trade, a profession, or an industry.
usage of trade
Where a preprinted form contract is used, _____ words in a contract prevail over _______ words. _________ words prevail over both preprinted and typed words
typed, preprinted, Handwritten
Any oral or written words outside the four corners of a written contract
parol evidence
A rule stating that if a written contract is a complete and final statement of the parties’ agreement, any prior or contemporaneous oral or written statements that alter, contradict, or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract. There are several exceptions to this rule.
parol evidence rule
A concept that a written contract is a complete and final statement of the parties’ agreement
complete integration
A clause in a contract that stipulates that it is a complete integration and the exclusive expression of the parties’ agreement.
merger clause (integration clause)
An equitable doctrine that permits enforcement of oral contracts that should have been in writing. It is applied to avoid injustice.
promissory estoppel (equitable estoppel)
