Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Code III Exam > Contracts > Flashcards

Contracts Flashcards

1
Q

If the offerer loses capacity, the offer

A

expires

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

May specific performance be used to force an individual to perform personal services?

A

No.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

May specific performance be used to force an individual not to perform an action?

A

Yes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

In a loan for consumption:

A

The “borrower” becomes the owner of the consumable property, and bears the risk of loss. The camper is entitled to replacement or value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A hotel’s liability for items put into safe deposit boxes provided in rooms…

A

is limited to $500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A mandatary may generally contract for the principal without express authority. However, a mandatory may not enter certain types of contracts, such as

A

contracts for loans, without express authority. A mandatory also needs express authority to acquire or lease anything, become a surety, draw or endorse promissory notes, make inter vivos donations, accept or renounce a succession, acknowledge or make remission of a debt, or make healthcare decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Parties to a compromise need capacity only if

A

the compromise effects a transfer or renunciation of rights. The answer choice states the opposite.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Can a court declare a contact relatively null sua sponte?

A

No.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The prescriptive period for raising both relatively and absolutely null contracts is

A

five years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Within what time from of when the obligee learned or should have learned of the obligor’s offending act must a revocatory action be brought?

A

The action must be brought within a year.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

An oblique action

A

allows an obligee to pursue resources that the obligor fails to follow up on if the obligor’s failure increases its insolvency. It is the best recourse for the investor to ensure that the partnership will be able to repay its debt to him.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

An oblique action is not allowed if

A

the right is strictly personal to the obligor.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Under the Civil Code, when a seller has not delivered as agreed, the buyer may

A

demand specific performance or seek dissolution of the sale. Damages may also be available if the owner purchases substitute goods for a higher price than contracted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

A contract is

A

an agreement by two or more parties, whereby obligations are created, modified, or extinguished.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

a unilateral contract is

A

a contract by which only one party incurs an obligation. This is totally ok in civil law, but not under the common law.
Example: donation or deposit contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

a bilateral contract

A

AKA synallagmatic contract. involves two or more parties, all of which incur an obligation

example: contract of sale, contract of lease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

onerous contract

A

each party to the contract obtains an advantage in exchange for his or her obligation

example: sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

gratuitous contract

A

only one party obtains an advantage in exchange for his or her obligation

example: donation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

commutative contract

A

performance of a party is correlative to performance of another party\

example: sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Aleatory contract

A

Performance, or extent of performance, of either party’s obligation depends upon an uncertain event.
EXAMPLE: Contract of car insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Principal contract

A

a contract that can stand on its own

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

accessory contract

A

Made to provide security for performance of an obligation (e.g., suretyship, mortgage).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Nominate contract

A

Given special designation and regulated by special rules.

EXAMPLE: Sale, lease, loan, insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

innominate contract

A

Contracts that have no special designation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Requirements for a Valid Contract

A

capacity
consent
cause
object

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

persons have capacity to contract, except:

A

minority
interdiction
being deprived of reason (temporary or otherwise)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

a contract made by a person without legal capacity is

A

relatively null. it can be declared null, but it can be ratified to be given effect.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

exceptions to lack of capacity, unemancipated minor

A

Un-emancipated minors have capacity to contract when:

a. Other party reasonably relies on minor’s representation of majority; or
b. Contract provides minor with something necessary for his support or education, or contract relates to his business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

exceptions to lack of capacity, persons deprived of reason

A

When persons deprived of reason have capacity to contract:

a. A non-interdicted person may obtain rescission of an onerous contract only upon showing that other party knew or should have known of that person’s incapacity.
b. A contract made by a non-interdicted person may be attacked after that person’s death only when contract:
(1) is gratuitous;
(2) evidences lack of understanding;
(3) was made within thirty days of person’s death; or
(4) when application for interdiction was filed before person’s death.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Formation of Contract

A
  1. Formed by consent of parties established through offer and acceptance.
  2. May be made orally, in writing, or by action or inaction that clearly indicates consent.
  3. No form required, unless law of contracts specifies.
  4. If parties intend a certain form to be used, it is presumed that they do not intend to be bound until contract is executed in that form.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

An offer is

A

an expression by one individual of an interdiction to form a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

An offer must be

A

serious
precise (specific price for a specific thing)
firm (offer can accept by just saying yes)
declared to the offeree

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

When is an offer revocable?

A

a. May be revoked before acceptance.
b. Revocation is effective when received by offeree.
c. Will expire if not accepted within reasonable period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What is an irrevocable offer?

A

a. Offer specifying period of time for acceptance is irrevocable during that time.
b. Will expire if not accepted within period of irrevocability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

For a revocable offer, acceptance is effective when:

A

(mailbox rule) it is transmitted–as soon as the acceptance is put into the mail.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

For an irrevocable offer, acceptance is effective when

A

the acceptance is received

37
Q

Revocation of an offer is not effective until

A

it is received

38
Q

A written revocation, rejection, or acceptance is received when

A

it comes into the possession of the addressee, or a person authorized to receive it (mandatary), or when it is deposited in the place the addressee has indicated for the receipt of similar communications

39
Q

offeror invites offeree to accept by performance, and it is contemplated that performance will be completed if commenced, contract is formed when

A

offeree begins performance.

40
Q

If offer can be accepted only by completed performance, offeror must allow offeree who has begun performance reasonable time to complete performance; however

A

offeree need not complete performance.

41
Q

When commencement of performance constitutes acceptance or makes offer irrevocable

A

, offeree must give prompt notice of commencement unless offeror knows or should know that offeree has begun to perform. Offeree who fails to give notice is liable for damages.

42
Q

Offer is deemed accepted when offeree’s silence

A

leads offeror reasonably to believe that a contract has been formed.

43
Q

Offer of Reward to Public, Binding upon offeror even if

A

person who performs has no knowledge of offer.

44
Q

Offer of Reward to Public, May be revoked before completion of requested act, if

A

by same or equally effective means as offer.

45
Q

Generally, cause is

A

(sort of like consideration) the reason a party obligates himself

46
Q

an obligation cannot exist without

A

lawful cause

47
Q

If a false cause is expressed, obligation is still effective if

A

a valid cause can be shown

48
Q

Detrimental Reliance

A
  1. Promissee must have relied on promise to his detriment.
  2. Promissor must have known or should have known promise would induce other to rely.
  3. Promissee must have been reasonable in relying.
    a. Reliance on a gratuitous promise made without required formalities is not reasonable.
  4. Recovery may be limited to expenses incurred or damages suffered as a result of promisee’s reliance on promise.
49
Q

Parties may contract for any object that is

A

lawful
possible
determinable

50
Q

object is possible (or impossible) according to its own nature and does not depend on

A

whether the specific parties to the contract can themselves actually do it

51
Q

future things

A

you can contract for future things if it doesnt exist yet, but will be produced; EXCEPT you cannot contract for the succession rights of any living person

52
Q

Contractual object must be determined at least as to its kind; however, quantity only needs to be determinable

A

a. If determination of quantity of object has been left to discretion of a third person, quantity of an object is determinable.
b. If parties fail to name a person, or if person named is unable or unwilling to make determination, court may determine quantity.
c. Quantity of a contractual object may be determined by output of one party or requirements of another, measured in good faith.

53
Q

A third person’s obligation or promise to perform may be the object of contract. Promisor is liable for

A

damages if third person does not fulfill obligation or perform.

54
Q

Third party beneficiary:

A

the object between the two contracting parties is to bestow a benefit on some third party (teach my kid piano)

55
Q

Vices of consent

A

error
fraud
duress

56
Q

Mutual error

A

Where both parties have labored under a common faulty assumption regarding present facts, there is mutual error.

57
Q

Unilateral Error

A

Where one party has labored under a common faulty assumption regarding present facts, there is unilateral error.

58
Q

Consent is vitiated only when

A

(1) the error affects the cause, (2) the other party knew or should have known of the erring party’s cause (though not necessarily the error)

59
Q

Error concerns a cause when it bears on

A

(1) nature of contract;
(2) contractual object or a substantial quality of that thing;
(3) person or qualities of other party;
(4) law; or
(5) any other circumstance parties regarded (or should have in good faith) as a cause of obligation

60
Q

Party who obtains rescission on grounds of his own error is liable for loss sustained by other party, unless

A

the other party knew or should have known of the error

61
Q

Courts might not grant release if the damages sustained by the non-erring party are going to be

A

too significant

62
Q

If the non-erring party is willing to perform the contract as expected or anticipated by the party who erred, then

A

the court will allow the transaction to go forward

63
Q

inexcusable error

A

some errors, even if they go to the cause and/or the other party knew or should have known, are too outrageous to nullify the contract. for example, I signed the contract, but I didn’t read it so I didn’t know what I was doing/actually buying.

64
Q

Fraud is a

A

misrepresentation or a suppression of truth made with intention to obtain unjust advantage for one party or to cause loss or inconvenience to another.

65
Q

Fraud does not vitiate consent when party against whom fraud was directed could have

A

determined truth without difficulty, except if a relation of confidence has reasonably induced a party to rely on another’s assertions or representations.

66
Q

Consent may be vitiated even if error induced by fraud does not concern cause of obligation, although it must concern

A

circumstance that has substantially influenced that consent

67
Q

May fraud result from silence or inaction?

A

Yes.

68
Q

Consent is vitiated when obtained by duress that causes

A

a reasonable and unjust fear of considerable injury to a party’s person, property, or reputation

a. Includes duress directed against spouse, ascendant, or descendant of contracting party.
2. Duress allows for rescission, damages, and attorney’s fees.

69
Q

General Effect of Contract

A
  1. Have effect of law for parties.
  2. May be dissolved only through consent of parties or on grounds provided by law.
  3. Must be performed in good faith
70
Q

Three instances of failure to perform

A

non-performance
defective performance
delayed performance

71
Q

The non-breaching party may seek

A

dissolution of the contract and damages, or specific performance of the contract.

72
Q

For obligations to deliver a thing, to not do an act, or to execute an instrument, specific performance may be obtained unless

A

doing so would be impracticable

impracticable means impossible, or greatly disproportionate in cost, not in the creditor’s interest, or had a substantial, negative effect on interested third parties.

73
Q

If specific performance is impracticable, court may allow

A

damages

74
Q

Obligor is liable for damages caused by

A

failure to perform a conventional obligation, including nonperformance, defective performance, or delay in performance.

75
Q

Damages are measured by

A

loss sustained by obligee and profit of which he has been deprived.

76
Q

Obligor in bad faith is liable for

A

all damages, foreseeable or not, that are a direct consequence of his failure to perform.

77
Q

Obligor in good faith is liable only for:

A

foreseeable damages

78
Q

Obligee may not recover damages when:

A

(1) his own bad faith has caused obligor’s failure to perform; or
(2) in contracting, he has concealed from obligor facts that he knew or should have known would cause a failure.

79
Q

Obligee must make reasonable efforts to

A

mitigate damage caused by obligor’s failure to perform, and in absence of such efforts obligor may demand that damages be accordingly reduced

80
Q

Non-pecuniary damages are recoverable when:

A

(1) Because of its nature, contract is intended to gratify a non-pecuniary interest; and
(2) Because of circumstances in formation or nonperformance of contract, obligor knew (or should have known) that failure to perform would cause such a loss.

81
Q

Regardless of nature of contract, damages are also recoverable when

A

obligor intended through his failure to aggrieve feelings of obligee.

82
Q

Parties have great latitude in contracting for damages. However, parties cannot exclude or limit

A

liability of one party for intentional or gross fault that causes damage or physical injury to another.

83
Q

Parties may stipulate damages to be recovered in case of

A

nonperformance, defective performance, or delay in performance of an obligation.

b. Obligee does not have to prove damages.
c. Court may not modify, unless so manifestly unreasonable as to be contrary to public policy.

84
Q

Moratory damages are available when

A

(1) the parties agree that the contract would be performed by a specific time
(2) the obligee puts the obligor in default by:
(a) written request of performance;
(b) oral request of performance made before two witnesses;
(c) filing suit for performance; or
(d) specific provision of contract

85
Q

If obligor fails to perform, obligee may

A

serve notice to perform within a reasonable time, with warning that contract will be dissolved unless performance is rendered within that time.

86
Q

Obligee is not required to provide notice of dissolution to obligor if

A

it is obvious that obligor will not perform or if delayed performance would no longer be of value to obligee.

87
Q

If after dissolution restoration in kind is impossible or impracticable

A

the court may then assess damages based on loss profit and cost expended

88
Q

Dissolution does not affect

A

performance already rendered under contracts providing for continuous or periodic performance.

Code III Exam (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions