Chapter 3: Other North Carolina Contract Distinctions Flashcards
Infancy
In NC anyone who has not reached 18 is an infant. However, some Ks are enforceable when the Superior Court specifically approves it:
Agrees to perform artistic or creative services
Agrees to sell, lease, license or otherwise dispose of literary, musical or dramatic works
Is employed or agrees to render services as a participant or player in a sport or
Renders services as an actor, extra, background performer, or in a similar capacity.
Court may require 15% of minor’s gross earnings to be held in trust until minor reaches 18.
Warranties
Alternative A: A seller’s warranty, whether express or implied, extends to:
any natural person who is in the family or household of the buyer, or who is a guest in the buyer’s home;
if it is reasonable to expect that such a person may use, consume or be affected by the goods;
and the person sustains a personal injury as a result of the breach of warranty.
Seller MAY NOT contract to limit warranties extended to buyer alone.
Third party beneficiaries
NC follows the Second Restatement. A third party beneficiary can recover if she is an intended beneficiary
SOF
In NC, a lease of real property that will last more than 3 years from the date of the making must by supported by a signed writing.
A writing is required for the transfer of an interest in real property
NC does not recognize part performance as an exception to the SOF. If P has advanced all or part of the purchase price or made improvements to the property, the P may recover the advance payment or the value of the improvements.
No 1 year provision in NC
Commercial loans for more than 50K subject to SOF
A promise to pay a debt that was discharged in BK subject to SOF
Non-compete agreements sub to SOF
Leases of land for the purpose of mineral extraction must have a writing no matter how short the duration.
Lost profits
Party must prove but for the breach, it would have made profits and the profits can be calculated w/ reasonable certainty.
Mental Anguish
A P can recover for mental anguish when
the K is personal in nature;
The performance of the K is of a sensitive nature such that a breach would necessarily and reasonably result in mental anguish and
the parties should know from the nature of the K that mental anguish will result from it’s breach.
Punitive damages
In NC punitive damges are never allowed for breach of K, except cases to marry (which is a tort) or accompanied by a tort that may give rise to punitive damages.
