Contracts Flashcards
The ingredients for a valid contract are _____
TACO: T – Definite TERMS, express or implied A – ACCEPTANCE of terms C – CONSIDERATION O – OFFER inviting acceptance
When asserting a strict products liability claim, P must prove that a ____ dangerous defect in the product proximately caused a physical injury:
DIM
D – DESIGN defect
I – INADEQUATE warning
M – Mistake in the MANUFACTURING process
Strict products liability is imposed on a regular seller of a _____ product:
DUD
D – DEFECTIVE, and an
U – UNREASONABLY
D – DANGEROUS product
_____ can use the following defenses against a breach of warranty claim:
G.P.S. LAMP G – GOVERNMENT military contract defense P – Federal PREEMPTION S – STATUTE OF LIMITATIONS L – LACK of timely notice to a seller A – ASSUMPTION of risk (can be asserted against any PINE claim) M – Unforeseen MISUSE of a product P – Lack of PRIVITY of contract
A P’s claim against a seller for a defective good can be based on one or more overlapping but different ____ theories of liability:
PINE
P – Torts theory of strict PRODUCTS liability
I – Contract theory for breach of IMPLIED warranty
N – Torts theory of NEGLIGENCE
E – Contract theory for breach of an EXPRESS warranty
Express warranties are _____
SAD:
S – SAMPLE or model, which is the basis of the bargain
A – Written or oral AFFIRMATION of fact or promise made by the seller relating
to the goods
D – DESCRIPTION of the goods in advertisements, brochures, or catalogs
A sales contract contains_____ warranties:
M FEET M – Warranty of MERCHANTABILITY F – Warranty of FITNESS for a particular purpose E – Warranty against ENCUMBRANCES E – EXPRESS warranties T – Warranty of TITLE
Remedies available to a buyer are _____
CID’S WAR:
C – COVER
I – INCIDENTAL & consequential damages
D – DAMAGES for lost benefit of the bargain, or for the price paid S – SPECIFIC PERFORMANCE on a contract for unique goods
W – Breach of WARRANTY
A – ACCEPTANCE revocation
R – REJECTING non–conforming goods
Remedies available to a seller are _____
SPARKLE: S – STOPPING goods in transit P – Suing for the entire contract PRICE A – Demanding ASSURANCES R – RE–SELLING goods to another buyer K – KEEPING part of a breaching buyer’s deposit, never more than $500 L – Suing for LOST Profit E – EXERCISING the right to reclaim goods delivered to the insolvent buyer
_____ and _____ affect risk of loss:
SOAL–V and SORE–V affect the risk of loss:
SOAL V – SALE ON APPROVAL LATE VESTING (goods held by the buyer are not subject to claims of the buyer’s creditors)
SORE V – SALE OR RETURN EARLY VESTING (title and ROL vest immediately in the buyer, even though the buyer has a right to rescind the K)
If a sales contract is silent on a topic, the UCC implies the following ____ rules:
CIDER
C – Seller is not obligated to extend CREDIT to the buyer
I – Buyer has the right to INSPECT the seller’s tendered goods (except no right
to inspect when the transaction involves a bill of lading)
D – Seller’s tender of DELIVERY is implied to be at seller’s place of business,
unless both parties know that the goods are located elsewhere
E – Buyer and seller must EXCHANGE performance concurrently
R – RISK OF LOSS is on the party in the best position to bear that risk
Exceptions to the Statute of Frauds requirement are _____
SWAMP: S – Contracts for SPECIALLY manufactured goods W – WAIVER A – Judicial ADMISSION of contract M – “MERCHANT MEMORANDUM” P – PART PERFORMANCE
A _____ clause materially alters an offer if it would cause surprise or hardship to the offeror if the offeror was not made aware of its existence:
J STRAW
J – Bestowing JURISDICTION on a particular court, or requiring offeror to
consent to jurisdiction in particular state
S – Shortening the STATUTE OF LIMITATIONS to sue for non–conforming
goods
T – Limiting TORT liability or limiting a buyer’s right to sue for consequential
damages
R – Altering UCC rules for RISK OF LOSS
A – Adding an ARBITRATION CLAUSE (unless customary to do so in the
trade)
W – Adding a clause negating a WARRANTY (e.g., one of merchantability or
fitness)
Additional terms will not be added to the contract when _____
OCAN:
O – The offeror OBJECTS to additional terms within a reasonable time
C – The offer expressly CONDITIONS the agreement on accepting the terms in
the offer as they are
A – The additional terms materially ALTER the offer N – Either or both parties are NON–MERCHANTS
____ limits the Perfect Tender Rule:
ICOP
I – INSTALLMENT contracts
C – Timely delivery was COMMERCIALLY IMPRACTIBLE by an event not
contemplated by the parties.
O – Delivery in good faith, OBJECTIVELY and reasonably believing the goods
would be acceptable to the buyer
P – PRIOR TO DELIVERY DATE set forth in the contract, conforming goods
are delivered to replace the nonconforming goods
