Contracts

Question 1

Merchant

Answer 1

1. Person who regularly deals with the goods involved in the transaction
2. Person who based on his occupation holds himself as having the knowledge or skills peculiar to the goods involved in the transaction
3. Any business person who is involved in a transaction of a commercial nature.

Question 2

Novation

Answer 2

Origional obligor repudiates liability and the obligee accepts performance from the delegatee without reserving rights against the obligor. (Both parties must agree).

Question 3

Integration

Answer 3

First step of applying the parole evidence rule, see if the writing is an integration. A writing is an integration if the parties intended it to be the final writing.

Question 4

cover

Answer 4

Remedy for the buyer under the UCC. Buyer buys the good elsewhere. Allows recovering the the replacement price minus the K price.

Question 5

Adequate Assurance

Answer 5

Parties to a contract are entitled to expect performance as due. When reasonable grounds for insecurity of nonperformance exist, a party may request adequate assurance that performance will take place. The party that such assurance is requested from must provide adequate assurance within 30 days. Failure to provide such assurance constitutes repudiation.

Question 6

Substantial Performance

Answer 6

Substantial performance is only found in common law contracts and UCC installment contracts.
For common law contracts substantial performance is found when there is “no uncured material failure”.Whethere a failure is material depends on several factors including: 1. the extent the injured party will be deprived of the benefit he reasonably exoected 2. the xtent the injured parrty will be compensated for the benefit that he expected 3.the extent the party failing to perform will seffer forfeiture 4.the extent the party failign to perform will cure his failure and 5. the extent the bahavior of the party failing to perform comports wil standards of good faith and fair dealing.

Question 7

Intended Beneficiary

Answer 7

Intended beneficiary does not need to be identified or aware of the promise when it is made inorder to sue. Inorder to be able to sue, needs to be that giving the right to sue will be apprpriate to effectuate the intent of the parties. If that test is met, then intended beneficiary mustb also fit into 1 of these categories:

1. performance will allow the promisee to satisfy its obligation to the beneficiary (creditor beneficiary vibe)
2. circumstances indicate that the promisee intended that the beneficary benefit from the promised performance (donee benficiary).