chapter 8

Question 1

UNIFORM COMMERCIAL CODE

Answer 1

A uniform code drafted by the National Conference of Commissioners of Uniform State Laws

• governing the conduct of business, sales, warranties, and other commercial matters.
• not federal law
• state legislators passed this proposed model as part of states’ statutory law
• important to know whether or not UCC governs a contract
• Article 2 defines the rights and duties of contracting parties if based on sale of goods.

Question 2

What is Article 2 of UCC. Article 2A

Answer 2

Art 2 Governs sales: defines the rights and duties of contracting parties if the subject matter of the contract is a sale of goods.
Art 2A is the non sale transfers of person perter leases, transactions

Question 3

CONTRACT- RESTATEMENT OF CONTRACTS

Answer 3

A promise or set of promises for the breach of which the law gives a remedy, or the performance of which the winsome way recognizes as a duty.
*Contracts are the intelligent response to the human need to get things done with the cooperation of other human beings.

Question 4

Contract Clause

Answer 4

Article I Section 10

No State shall pass any Law impairing the Obligation of Contracts

Question 5

SALE

Answer 5

A contract in which title (ownership) of property passes from seller to buyer. Possession transfers at the time of sale.

Question 6

UNITED NATIONS CONVENTION on CONTRACTS for the sale of GOODS

Answer 6

became part of US law in 1988. More than 2/3 of the world’s countries have adopted this convention.
*deviates from UCC sales may be oral,unlie UCC sales in excess of $500 must be evidenced by written documentation. The contracting parties, however, must opt out of all or any part of the United Nations Law.

Question 7

How are contracts classified

Answer 7

Method of expression
Legal Effect
Parties Bound
Extent of Performance

Question 8

Method of Expression

Answer 8

A classification of contracts:

• Express
• Implied
• Formal
• Simple

Question 9

Express Contract

Answer 9

A contract or agreement made in words spoken or written.

Question 10

Implied in fact

Answer 10

contractual agreement manifested in conduct or body language

Question 11

formal contract

Answer 11

• Agreement that must used prescribed language and/or be in prescribed form.
• Statutes prescribe the terms and exact language.
• ie) bank checks or promissory notes

Question 12

SIMPLE CONTRACT

Answer 12

All oral and written contracts not classified as formal contracts.

Question 13

PARTIES ABOUND

Answer 13

how parties are or aren’t bounded to the contract

whether it is a unilateral or bilateral contract

Question 14

LEGAL EFFECT

Answer 14

Classification of contract by The effect of the contract:

• Valid contract
• Void agreement
• Voidable
• Unenforceable

Question 15

EXTENT OF PERFORMANCE

Answer 15

classification of contract that describes the degree of performance by parties.

• executed contract
• executory contract

Question 16

WHAT ARE THE SIX REQUISITES OF A VALID CONTACT TO BE ENFORCEABLE

Answer 16

1. Competent Parties
2. Mutual Agreement
3. Genuine Assent
4. Reciprocal Consideration
5. Legality in Formation and Execution
6. Form Prescribed by Law

Question 17

PAROLE EVIDENCE RULE

Question 18

STATUTE OF FRAUDS AND PERJURIES

Answer 18

For a contract to be enforceable in Court: (state statutes)
*Be in writing
*Signed by the party or agent against whom enforcement is sought.
(an aspect of FORM)

Question 19

DIRECT INVOLVEMENT OF THIRD PARTIES IN CONTRACTS

Question 20

HOW ARE CONTRACTS DISCHARGED

Question 21

EXCUSES FOR NON PERFORMANCE

Question 22

REMEDIES AVAILABLE FOR BREACH OF CONTRACT

Question 23

WHAT ARE THE DEFENSES TO NEGLIGENCE

Answer 23

COMPARATIVE NEGLIGENCE
CONTRIBUTORY NEGLIGENCE
ASSUMPTION OF RISK

Question 24

COMPRATIVE NEGLIGENCE

Answer 24

Negligence of the plaintiff that does not bar recovery of damages, but may reduct the amount of recovery proportionally.