Contracts/Sales Flashcards
When does nonconformity constitute breach in installment contract?
whenever non-conformity or default with respect to one installment substantially impairs the alue of the entire contract there is a breach of the whole. UCC also gives adequate assurances of a cure of non-conformity buyer must accept
When is a gratuitous assignment not-revocable?
A gratuitous assignment is not revocable if it is signed and delivered to the assignor
When is impossibility an excuse?
Impossibility is an excuse when it relates to a non-material term where non-excusal would result in forfeiture.
To constitute an excuse normally the event must be impossible for anyone to perform in that it is both physically and objectively impossible.
A builder who guarantees performance assumes the risk of non-completion and is liable for breach
Implied Warranty of Merchantability =
Implied whenever the seller of goods is a merchant. To be merchantable, goods must be fit for their ordinary purpose and pass without objection in the trade. A breach of this warranty must have been present at the time of the sale. However, if the buyer, before entering into the contract, has examined the goods as fully as the buyer desires, or has refused to examine the goods, there is no implied warranty with respect to defects that an examination would have revealed to the buyer.
when there is a nonconforming tender or a tender of nonconforming goods under one segment of an installment contract, when may the buyer may cancel the contract?
only if the nonconformity substantially impairs the value of the entire contract to the buyer
When is a party liable for consequential damages?
When the damages are foreseeable. However, a party can eliminate that liability through an agreement
When does the power of acceptance end?
If the offeror does not set a time limit for acceptance, the power of acceptance terminates at the ned of a reasonable period of time. If the offeror effectively revokes the offer, it automatically terminates.
When is a surety agreement valid?
The Statute of Frauds applies to suretyship agreements (i.e., one person’s promise to pay the debts of another). Some oral surety contracts can be enforced (indemnity contracts and contracts wherein the surety’s main reason for paying the debt is the surety’s own economic advantage).
Contract where party’s performance requires period of time =
Where one party’s performance requires a period of time, that party must complete its performance before the other party is required to perform unless the language or circumstances indicate otherwise.
Condition Precedent =
Performance by one or both of the parties may be made expressly conditional in the contract, and the conditions may precede the obligation to perform (condition precedent)
Condition Subsequent =
Performance by one or both of the parties may be made expressly conditional in the contract, and may discharge the duty to perform after a particular event occurs (condition subsequent).
Damages for failure to delivery of goods under UCC =
Under the UCC, which governs the sales of goods, damages for failing to deliver goods is measured by the difference between the contract price and the market value of the goods (or the cost of cover).
