Chapter 6 Flashcards
What makes you have a legally enforceable contract?
- offer and an acceptance
- exchange of consideration
- lack of defenses
To be an offer three questions must be considered:
- Intent
- Definiteness and certainty
- Communication
What is common law
RISE Real Estate Insurance Services Employment
What is Uniform Commercial Code (UCC)
governs contracts for the sale of goods
What are irrevocable offers?
- Option contract
- Unilateral contracts
- merchants firm offers under UCC sales
When are acceptances and rejections effective?
Acceptances are effective the moment they send out the yes. Rejection, offers, counteroffers and so on are effective on date received
In regards to a contract, what is needed (consideration)
Something must be given in exchange for a promise for the contract to be enforceable
In order for a contract to be a contract, what are the 3 requirements?
- Offer & Acceptance
- Exchange Consideration
- No defenses
What is void and voidable and what did the pass key say about it?
Void - it cant be forceable
Voidable - it may be avoided at the option of the party affected
the pass key said very few defenses make a contract void
What is the Statue of Limitation for Contracts?
4 to 6 years from the Date of breach
What are the 6 contracts requiring writing?
MY LEGS Marriage Year - multi year contracts Land Executors - to pay estate debts out of personal funds Goods - $500 or more Surety - pay the debt of another
What are the exceptions for Year Contracts?
Its possible to perform in one year and full performance by one party
What are the exceptions for Land Contracts?
Leases for less than a year and full or partial performances like 2 of the following: Pmt in whole or part, making valuable improvements on the land, possession of the land
Whats an accord and Novation?
Same parties, new agreement. Novation is same agreement but substituted party
What is condition precedent, concurrent and subsequent?
- Precedent is a condition that occurs before the other party must perform (like qualifying for mortgage)
- Concurrent is the conditions are met simultaneously (like buying something at the store)
- Subsequent is a condition will occur after a partys duty to perform is done (like engagement ring)
What is the Parol Evidence rule?
A party in a lawsuit with a fully integrated written contract prohibits use of before or during oral agreements that were made that were not the same as the written contract. Statements after are admissable
Explain the following kinds of damages that can be charged for Breach of contracts?
- Compensatory
- Specific performance
- Liquidated damages
- Punitive damages
- Rescission or Cancellation
- Quasi-contract damages
- Limitations on monetary damages
- Benefit of the bargain (personal service contracts)
- used with land or unique items, money isn’t adequate
- Damages agreed to in the contract (enforceable as long as its reasonable and not a penalty)
- NOT available for breach of contract but are for fraud which is a tort cause of action
- unintentional minor breach for services (they r back 2 original position)
- one party gets a benefit at the others request and with a reasonable expectation of being compensated
- law imposes limitations of foreseeability and mitigation (reasonable efforts to avoid) on monetary damages
In determining whether the consideration requirement to form a contract has been satisfied, the consideration exchanged by the parties to the contract must be:
Legally sufficient
Decide whether the following are Valid, voidable or void:
- Fraud in the execution
- Fraud in the inducement
- A contract made by a party failing to have a required license. The sole purpose of the license was to raise revenue for a municipality
- Duress resulting from threat of physical force
- Duress resulting from threat of economic harm
- Contract made by an incompetent person without an adjudication of incompetency
- Immaterial unilateral mistake
- void
- voidable
- valid
- void
- voidable
- voidable
- valid
Whats the general rule of a creation of a Sales of Goods Contract?
Offers are revocable before acceptance. Except options
When is a Sales of Goods contract creation irrevocable? and what qualifies it?
When it is sold by a Merchants firm. To qualify as a merchants firm, the following apply:
- seller must be a merchant
- offer must be in writing and signed by the merchant
- offer must give assurances it will be kept open for a certain time
Kareem offers to sale Wilson a fridge, Wilson says “how about a fridge and a microwave?” How does this affect the contract under common law, sales article and between merchants?
- Common law: Its not a contract bc the acceptance must be the same as the offer
- Sales article: The new terms are ignore because Kareem and Wilson are not merchants
- If it was between merchants, minor changes can be made in acceptance
Whats the difference between an auction with reserve and without reserve?
With reserve means that the seller does not have to sell unless an adequate bid is made. An auction without reserve, the goods have to be sold to the highest bidder
Whats the Statue of limitations for UCC? (years)
4 years
