Deck 26 Flashcards
In contract cases, what kind of damages are generally not awarded
Punitive damages
Intended beneficiary
Person who were intended to be benefited by a contract other than the bargaining parties; can enforce a contract as soon as their rights vest
A promise to pay the debt of another must be evidenced by:
Some type of writing to be enforceable
Types of conduct that generally will make a contract void?
Physical harm, entering into a contract with a person who is without capacity, and fraud in the execution
Irrevocable offers
Option contracts and firm offers
Firm offer:
written offer by a merchant
Three ways to terminate an offer:
Rejection, revocation, automatically
To have an enforceable contract, there must be 3 things:
Offer and acceptance; exchange consideration, and no defenses
Two elements of consideration
1) Must be something of legal value; 2) Must be bargained for exchange
Promises to make a gift are:
Unenforceable (lack of consideration)
Void contract:
unenforceable by either party (criminal act)
Voidable contract:
It may avoided at the option of the party adversely affected
Fraud in the execution
Occurs when a party is deceived into signing something that he dos not know is a contract (void)
Undue influence
Abuse of a position of trust or confidence
Contract made by an incompetent person without an adjudication of incompetency is:
Voidable
Additional standard deduction for being over 65 and/or blind?
$1250 per person
Organization costs for a corporation include:
Legal fees and filing fees
Personal residence and personal furnishings are what kind of assets?
Capital assets
Adjusted basis =
Purchase price - depreciation
Under MACRS depreciation what amount of the gain should be recaptured as ordinary income?
Lesser of the gain realized or depreciation which was allowed
