Contracts

Question 1

Mailbox Rule

Answer 1

The mailbox rule treats the acceptance of an offer as valid when MAILED
—does not apply to option Ks.
Must receive the option holder’s decision to exercise the option within the time period specified in the Option Contract

Question 2

Option Ks

Answer 2

Option K for purchase of real property: the option holder receives the exclusive right to purchase the property during a specified time period in exchange for consideration. Under an option contract:
1. the grantor cannot revoke the option during the specified time period
2. the option does not terminate upon the death or incapacity of the grantor, and
3. can make counteroffer without losing the option.
The option holder must exercise the option pursuant to the terms of the contract. However, the mailbox rule—which treats the acceptance of an offer as valid when mailed—does not apply to option contracts. Instead, the grantor must receive the option holder’s decision to exercise the option within the time period specified in the contract. Otherwise, the option holder loses the option and any consideration that was paid.

Question 3

what is a due on sale clause

Answer 3

allows the lender to demand full payment of the remaining mortgage debt if the debtor transfers the mortgaged property without the lender’s written consent. The lender may waive this clause, but the debtor is still liable on the note unless the lender releases the debtor from that obligation

Question 4

how to start an essay where Art 2 applies

Answer 4

Article 2 of the Uniform Commercial Code (UCC) applies to transactions in goods. Goods are “things moveable” at the time of identification to the contract. A contract under Article 2 may be made in “any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of such a contract.”