Contracts Flashcards
What type of contracts involve both the sales of goods and providing services
Blended contracts
What does the UCC apply to?
the sale of goods.
What are the two types of contract law?
Common Law
Article 2 of Uniform Commercial Code (UCC)
What does Common law apply to?
Service
Real estate contracts (including leases)
Examples of service contracts
employment, agency agreements, law service contracts, car washes, medical care
What is the contract for the sale of a mobile home by a manufacturer governed by?
UCC
Express contract
a contract formed wholly by oral and/or written words
Implied or implied in fact contract
a contract formed at least in part based on the conduct of the parties or based on the factual circumstances
Quasi contract or implied in law contract
a contract imposed by the courts or by the law when some performance has gone forward, even though there is no express or implied contract. The law creates a quasi contract for the parties to prevent unjust enrichment of one party by the other
Bilateral contract
both sides make a promise.
Unilateral contract
one side makes a promise in exchange for an action or performance from the other side. Ex mowing yard - if you mow it then i will pay you
Executed contract
a contract that has been fully performed by both parties to that contract
Executory contract
one that has not yet been fully performed by the involved parties
Partially executed contract
a contract that has been performed in part, one side has performed the contractual obligation.
Void contract
one that lacks a legal purpose or is in violation of law. It cannot be enforced by the courts bc enforcement would violate public policy and encourage illegal conduct
voidable contract
an other wise valid contract that can be set aside bc one party has protection under the law and the right, by choice, to be relieved of liability under the contract. Ex. fraud in formation or the protected party lacked the required capacity to form contracts
unenforceable contract
other wise valid contract that cannot be enforced bc of a statutory or other legal defense. it is one that the courts will not enforce but an unenforceable contract can still be honored by the parties if they choose.
What does the Statute of Frauds require?
for certain contracts to be in writing to be enforceable.
What types of contracts must be writing due to the Statute of Frauds?
Guaranty of debt contracts
Contracts involving an interest in real property
Contracts impossible to perform within one year of formation
Contracts for the sale of goods priced at $500 or more
Promises of executors for personal liability for debts of the estate
contracts that are longer than one year cannot be enforceable unless…
they are in writing
What are the types of defenses that can be used to invalidate the formation of a contract?
Mistake Fraud or misrepresentation Duress Undue influence Illegality
can ratification take place while a minor is still a minor?
no
In a contract between an adult and a minor, who is allowed to disaffirm a contract>
only the minor
If a person if adjudicated as mentally incompetent by a court, what does that make all future contracts with that person?
VOID
What is novation?
A valid contract by which a new party is substituted for one of the original contracting parties, thereby terminating the substituted party’s liability
What is a condition precedent?
Something that must take place before the duty to perform under a contract arises
If someone dies before fulfilling contract can you sue their estate for breach of contract?
No
In an action for breach of a construction contract, when would the statue of limitations time period be computed from?
From the date the contract is breached.
What is the statute of limitations?
the period of time in which a plaintiff must file an action in an approp court to receive judicial remedies. Failure to file within the time period removes from the court the ability to grant a remedy. In a contract for the sale of goods, the statute of limitations period is four years but by agreement can be reduced to one year. The period of time limitation usually begins at the time the cause for action occurs
What is a rescission?
The undoing of a contract. Both sides return to their original positions and the obligations on both sides are discharged.
What is a release?
one party is let out of his or her contractual obligations. This does not necessarily return the parties to their previous positions and, in fact, is unlikely to do so unless the contract performance has not been started yet.
When is a person an intended creditor?
when a party to a contract owes the creditor money and the contract was made to satisfy the debt.
Promissory estoppel (def)
acts as a substitute for consideration and renders a promise enforceable
promissory estoppel 3 elements
- detrimental reliance on a promise
- Reliance on the promise is reasonable and foreseeable
- damage results if the promise is not enforced
