Contracts

Question 1

Conversion Damages

Answer 1

If a buyer wrognfully converts goods, the seller is entitled to recoup the fair market value of the goods at conversion.

Question 2

Repudiation

Answer 2

The failure of one party to fulfill their obligation of a contract through unwillingness or inability.

**If assurance is sought and satisfied, there is no repudiation.

Question 3

Anticipilatory Breach

Answer 3

Failure of a party to perform their end of an agreement after the service or product is due.

Question 4

Contract Modification (Oral)

Answer 4

Comon Law = Allowed WITH Consideration

UCC = A court must decide

• Additional terms or terms to be removed from a UCC contract need to be reviewed by the court.

Question 5

Common Law v. UCC

Answer 5

Common Law = Service contracts

UCC = The sale of goods

**This is true no matter what the facts say, and an agreement could be governed by both UCC and Common Law. One part of law may be applicable to one part of a contract, and another part may be applicable to another part of a contract.

Question 6

Parole Edivence in play

Answer 6

No outside oral agreements matter, and a contract must be exacuted for the transaction.

Parole Evidence is:

M - Marrage
Y - Contracts for terms longer than one year

L - Land (sale or transfer)
E - Estate (Death)
G - Gurantors
S - The Sale of goods worth more then $500

Question 7

Perfect Tender Rule

Answer 7

Does not apply to installment contracts

Question 8

Remedies

Answer 8

Should put the non-breaching party in the same position they would have been in if the breach did not occur.

Question 9

Assignment of a contract

Answer 9

The assignor needs to provide notice of the assignment to the other party to the contract in order for the contract to be enforceable.

** If the assigning party is especially qualified for the task they are to perform under the contract, then the contract may not be assignable.

Question 10

Repudiation is Final once:

Answer 10

(1) The repudiating party is sued for breach; or
(2) There is a change in material reliance on the repudiation; or
(3) it is stated that the repudiation is final

Question 11

Redrafting of a contract

Answer 11

Can only happen when there is a drafting error as a fault of none of the parties associated with the agreement.

Question 12

Mutual Mistake

Answer 12

When a contract fails to express the terms intended to be set forth by the parties to an agreement, due to no intentional misstatement or fraud, then there is a mutual mistake. In such a case, the court may insert the intended language into the document

• This is not a redrafting of the document.