Contracts-Torts-Property

Question 1

A plaintiff must be in privity with the defendant to have standing in a products liability action based on breach of warranty-but not negligence

Answer 1

True

Question 2

A promise to surrender a claim or defense constitutes consideration for settlement agreement so long as—-

Answer 2

1) the claim or defense is valid OR subject to a good-faith dispute OR
2) the surrendering party honestly believes that the claim or defense may be valid

Question 3

A contract is generally formed when a mutual agreement is supported by valuable consideration-i.e a bargained for exchange promises or performance.

Answer 3

True

Question 4

A common interest community association must act reasonably when exercising its discretionary powers

Answer 4

True

Question 5

A common-interest community is real estate development in which individually owned lots or units are burdened by. covenant that imposes an obligation to pay dues to an association.

Answer 5

True

Question 6

Unilateral offer may be revoked any time before the offeree begins performance. BUT

Answer 6

if the offeree relies on the promise and incur expenses in mere preparation for performance, the offeree may be entitled to reliance damages

Question 7

Unilateral contract is one in which a party promises to do something in return for an act by the other party

Answer 7

Unlike, bilateral contract, unilateral contracts cannot be accepted by a promise to perform-it can only be accepted by complete performance.

Question 8

Coming to the nuisance doctrine Is/IS not ???

Answer 8

IS NOT a compete defense-one factor considered by court

Question 9

A party can demand assurances of performance if there are grounds for insecurity about the other party’s ability or willingness to perform. BUT

Answer 9

Demand must be made in writing, and reasonable time within which to give adequate assurances is limited to 30 days.

Question 10

When there is a conflict of law issues in a case involving real property. the general rule is that the applicable law should be determined by the conflict of rule of the state where the property is located.

Answer 10

This usually results in application pf the situs state’s local law.

Question 11

A land possessor’s duty of reasonable care owed to an invitee cannot be delegated to an independent contractor.

Answer 11

As a result, vicarious liability will be imposed on the land possessor when the independent contractor’s work breaches this duty.

Question 12

An accord agreement must be supported by new consideration.

Answer 12

If the new consideration is worth less than what was originally promised, then it is sufficient only if:

1) there is good-faith dispute as to the amount owed OR
2) it is of a different type than what was originally owed

Question 13

A liquidated damages clause, which allows the seller to retain the buyer’s deposit if the buyer breaches the contract and refuses to purchase the property, is enforceable so long as the deposit bears a reasonable relation to anticipated damages.

Answer 13

A deposit of no more than 10% of the purchase is typically deemed reasonable.

Question 14

Lans sale contracts deposit money is referred to as

Answer 14

EARNEST MONEY

Question 15

Land-sale contracts deposit money is referred to as

Answer 15

EARNEST MONEY

Question 16

At common law, all essential terms must be covered in a contract and be sufficiently certain and definitive.

Answer 16

In land-sales contract, a price is sufficiently certain if there is a practicable method to determine the price and the subject matter is sufficiently certain if the property description allows the court to determine the exact property is sold

Question 17

Essential Contract Terms in common law:

Answer 17

1- Parties
2-subject matter description
3-price or other consideration
4-quantity
5-duration of a contract
6-Time for each party's performance

Question 18

In landsales contract two essential terms are:

Answer 18

1- price
2-subject matter
3-parties
4-words of intent

Question 19

To be valid the deed must be signed by the grantor BUT

Answer 19

the signature can be made by the principal-grantor’s agents if the agent had authority to sign on the principal-grantor’s behalf

Question 20

Valid deed requirements:

Answer 20

1-Writing
2-Grantor signature
3-identity of the parties
4-words of transfer
5-property description

Will Grant Interest When Proper

Question 21

The measure of recovery in in tensional misrepresentation is the benefit of the bargain

Answer 21

That is determined by calculation the difference between the actual value received by the plaintiff in the transaction and the value that would have been received had the representation been true

Question 22

To establish intentional misrepresentation P must show that:

Answer 22

1- the D knowingly or recklessly misrepresented a material fact with intent to induce the P’s reliance
2-the P reasonably relied on the misrepresentation and suffered pecuniary loss as a result.

Question 23

Preparing and approving legal instruments for another generally constitutes the practice of law.

Answer 23

However, completion od standard mortgage-loan documents by non attorney employee of a mortgage Kender is not the practice of law so long the employees aren’t exercising legal discretion in completing the documents

Question 24

A misrepresentation render a contract voidable by the adversely affected party if:

Answer 24

1- the misrepresentation was fraudulent or material
2-it induced assent to the contract
3-adversely affected party justifiably relied on it.

Question 25

A misrepresentation is an untrue assertion that is presented as a fact or an opinion.

Answer 25

When misrepresentation occurs, a contract is voidable and can be rescinded by the adversely affected party if:
1-the misrepresentation was fraudulent or material
2-the misrepresentation induced assent to the contract
3- the adversely affected justifiably relied on the misrepresentation.

Question 26

Statements about the future generally constitute opinions and are insufficient to support a fraudulent misrepresentation claim.

Answer 26

However, an opinion may constitute an assertion of fact for purposes of fraudulent misrepresentation of the listener could reasonably interpret the option as an assertion that the speaker knows facts to support this opinion.

Question 27

Fixtures attached to leased property by tenants must be removed before the lease terminates, but they can be removed within a reasonable time thereafter IF:

Answer 27

1-the termination was not due to the tenant’s breach and

2-the tenant could not have foreseen termination early enough to permit removal before the lease terminates.

Question 28

A fixture is tangible personal property attached to real property in such a manner that is treated as a part of the real property when determining its ownership. However, absent an agreement to the contrary, a fixture that the tenant has attached to the leased property my be removed if:

Answer 28

1- the leased property can be and is restored to its former condition AND
2-the removal and the restoration are made within a reasonable time.

A reasonable time generally does not exceed beyond the termination of the lease. However, it does when
1-the termination was not dues to breach by the tenant
2-the date of termination was not foreseeable by the tenant sufficiently far enough in advance to permit removal before the lease terminates.

Question 29

To terminate a periodic tenancy, the land lard must give the tenant notice of termination before beginning of the intended last period of the periodic tenancy.

Answer 29

For month-to-month tenancy, notice must be given before the fort days of the last month of the tenancy.

Question 30

IIED, the P must prove that the D intentionally or recklessly caused the P severe emotional distress by acting in an extreme and outrages behavior.

Answer 30

To recover IIED P must prove that the D;
1- engaged in extreme and outrages conduct
2-intended to cause the P severe emotional distress or recklessly disregard the risk of causing such distress AND
3-caused the P severe emotional distress

Question 31

Extreme and outrages conduct is considered WHEN

Answer 31

the conduct exceeds the possible limits of human decency

Question 32

A contracting party may generally avoid performance if a condition precedent( uncertain future event that must occur before performance becomes due has not occurred)

Answer 32

However, the nonoccurence of condition may be excused if the party who would benefit from the condition waives it by words or conduct. When the condition is waived before it is due to occur, the waiving party cannot retract the waiver and reinstate the condition if the other party has detrimentally relied on the waiver.

Question 33

A land seller must disclose unreasonably dangerous conditions if:

Answer 33

1- the condition exists at the time of the sale
2-the seller knows or has reason to know of the condition and its risk
3-the buyer does not know or have reason to know of the condition or risk
4- the seller has reason to believe that the buyer would not discover or realized it.

Question 34

Future inserts that follows a defeasible fee simple estate is called a FEE SIMPLE SUBJECT TO AN EXECUTORY LIMITATION when title passes to a third party upon the occurrence of the states event or condition.

Answer 34

Although an intervivos transfer of the executory future interest was not permitted at common law, it is permitted today.

Question 35

Defeasible fee simple estate is an ownership interest that may last for an indeterminate duration but is limited by specific durational or conditional language.

Answer 35

the future interest that follows the defeasible fee simple is called a
FEE SIMPLE SUBJECT TO AN EXECUTORY LIMITATION when title passes to a third party.

Question 36

Courts may impose a quasi-contract (implied in law) if the P conferred a measurable benefit on the D without gratuitous(bedava) intent and would be unfair to let the defendant retain that benefit.

Answer 36

The P may recover restitution damages in amount equal to the value of the benefit conferred.

Question 37

Implied in fact remedies are

Answer 37

contract damages

Question 38

A valid deed must include:

Answer 38

Will Grant Interest When Proper
1-writing
2-signed by grantor
3-identity of the parties 
4-words of transfer
5-Property description

CONSIDERATION IS NOT REQUIRED

Question 39

Under the UCC, the risk of loss in the absence of a breach generally remains with the seller until buyer receives the goods

Answer 39

But when a contract involves identified goods, then complete destruction of the goods excuses each party’s duty to perform so long as destruction occurred:
1-without fault of either party
2-before the risk of loss passed to the buyer

Question 40

when parties agree that the seller is to deliver the goods to the buyer then the risk of loss passes to buyer when

Answer 40

1-upon taking physical possession of the goods if the seller is merchant OR
2-upon tender of delivery if the seller is not merchant.

Question 41

Under the UCC, when contract deals with specifically identified goods, complete destruction of the goods excuses party’s duty to perform if the destruction occurred:

Answer 41

1- without fault of either party and

2-before the risk of loss passed to the buyer

Question 42

Under the UCC, if the destruction occurs partially Buyer may demand inspection and:

Answer 42

1- treat contract as avoided or

2-accept goods at reduced price but with no further right against seller

Question 43

Parents owe a duty to exercise reasonable care to prevent their minor child from causing foreseeable harm to others

Answer 43

Parents are liable for failure to use reasonable care to prevent minor child from causing foreseeable harm to others
But they are not vicariously liable unless:
-child acts parent’s agent
-state statute imposes liability on parent

Question 44

NIED occurs under the special-situations theory when t the P suffers serious emotional distress because the D negligently:

Answer 44

1-delivered an erroneous announcement of death or illness
2-mishandled a loved one’s corpse or bodily remains
3-contaminated food with a repulsive foreign object

Question 45

A P can recover for NIED under 3 theories

Answer 45

1- zone of danger
2-bystander=must be close relative
3-special situations (arises when the P suffers serious emotional distress because the D negligently: 1) delivered an erroneous announcement of death or illness, 2) mishandled the corpse or bodily remains of loved ones OR 3) contaminated food with a repulsive foreign object)

Question 46

Language that merely limits the purpose of a transfer of property or express an intent for how the property should be used creates a fee simple absolute-not defeasible fee

Answer 46

Fee simple absolute is potentially infinite duration
Defeasible fee can be terminated by the occurrence of a stated event upon which the property will pass to the future interest holder.

Question 47

Contractual rights and duties are generally can be transferred to a nonparty by assignment or delegation BUT assignment is disallowed if it materially reduces the nonassigning party’s chance of obtaining performance.

Answer 47

Unless the party to the agreement agrees to lease it from liability and substitute the new party, the previous party will stay liable.

Question 48

Co-tenants owe each other judiciary duties when they
1-jointly purchase property in reliance on each other
2-acquire their interest at the same time from a common source
This duty arises:

Answer 48

when the property is sold at the foreclosure sale and purchased by a potent, allowing the other covenant to reacquire their interest by paying their share of the purchase price.

Question 49

Co-tenants owe each other judiciary duties when they
1-jointly purchase property in reliance on each other
2-acquire their interest at the same time from a common source
This duty arises:

Answer 49

when the property is sold at the foreclosure sale and purchased by a potent, allowing the other covenant to reacquire their interest by paying their share of the purchase price within a reasonable time.

Question 50

There are 2 types of assignment:

Answer 50

1- For value: It is given in exchange for consideration

2-Gratuitous: given with our foe consideration

Question 51

Assignment for value is irrevocable

Gratuitous is revocable unless exception applies.

Answer 51

Gratuitous assignment is revoked when the assignor subsequently assigns his/her contractual rights to a different assignee.

Question 52

Assignment for value is irrevocable

Gratuitous is revocable unless exception applies.

Answer 52

Gratuitous assignment is revoked when

• the assignor subsequently assigns his/her contractual rights to a different assignee.
• when assignor dies
• notifies assignee or obligator about the revocation

Question 53

Absent contrary language, all land-sale contracts have implied warranty of marketable title. The implied warranty of marketable title promises that the seller will convey title reasonably free from doubt and unreasonable risk of litigation upon closing.

Answer 53

The title is unmarketable if a future-interest holder has not agreed to the transfer.

Question 54

Evidence used to establish a condition precedent that must occur before a contract becomes effective is admissible under the PER.

Answer 54

EXCEPTIONS to PER
Evidence of prior or contemparenous oral or written agreement is admissible to establish:
1-whether the writing is integrated-completely or partially
2-meanng of ambitious term
3-defense to formation or enforcement(fraud, duress)
4-ground for granting or denying remedy
5-subsequent contract modification
6-condition precedent to effectiveness

Question 55

PER prevents a party to a written contract from preexisting extrinsic evidence of a prior or contemporaneous oral or written agreement that modifies or contradicts the term of an integrated writing. BUT the rule does not apply when a party attacking the validity of the agreement by asserting there was condition precedent to effectiveness that failed to occur.

Evidence used to establish a condition precedent that must occur before a contract becomes effective is admissible under the PER.

Answer 55

EXCEPTIONS to PER
Evidence of prior or contemporaneous oral or written agreement is admissible to establish:
1-whether the writing is integrated-completely or partially
2-meaning of ambitious term
3-defense to formation or enforcement(fraud, duress)
4-ground for granting or denying remedy
5-subsequent contract modification
6-condition precedent to effectiveness

Question 56

Special relationship to create a duty to control others:

Answer 56

1-parent-child
2-mental health patience-doctor
3-employee-employer
4-custodian-prisoner