Contracts Flashcards
The most basic statutory laws that effect contracts is called the…
Statute of Frauds (ARS 44-101)
The Statute of Frauds will not allow a court action on a contract unless what standard is met?
The contract must be IN WRITING.
PAROL EVIDENCE takes what form?
Parol evidence is ORAL
What does the parol evidence rule say?
That a court will NOT consider testimony about previous negotiations. Any discussion which took place before the signing of the contract is regarded as mere negotiation.
What doesUCC stand for?
The Uniform Commercial Code
What is the purpose of the Uniform Commercial Code?
The UCC are a set of uniform statutes adopted by all states but Louisiana which standardize business transactions.
What is a UCC financing statement (UCC-1)
A document that one files/records declaring financed personal property in a real estate setting (e.g. a barber’s chair).
What happens under a Unilateral contract?
A promise is exchanged for an act. Example: a reward poster
What happens under a bilateral contract?
A promise is exchanged for a promise. Example, a sales contract.
Does a contract to sell PERSONAL property need a signature?
No.
What is the maker of an offer in a contract called?
The OFFEROR
What is the receiver of an offer in a contract called?
The OFFEREE
What does the doctrine of RELATION BACK signify?
That if the seller dies before closing, the contract is still valid.
If the seller dies before closing, is the contract still valid? Under which doctrine?
Yes, the contract is still valid under the doctrine of Relation Back.
If the buyer dies before closing, is the contract still valid?
No. The buyer’s death voids the contract.
Is a contract voidable if the signator did not read it before signing?
NO - you should have read it before signing.
Who determines how much earnest money is enough?
The buyer and seller.
What does the Liquidated Damages clause say?
That the seller can keep the earnest deposit if the buyer backs out.
How long is a UCC-1 security agreement good for?
Recording the UCC-1 perfects the lien and is effective for five years.
How would a company which sold a barber chair on payments protect their property?
By recording a UCC financing statement and security agreement. This puts a lien on the real property while the chair is being paid off.
