Deck 27

Question 1

Six contracts requiring a writing (MYLEGS)

Answer 1

M: Marriage; Y: Cannot be performed within a Year; L: Land; E: executors; G: sale of Goods for $500 or more; S: surety

Question 2

Accord and satisfaction

Answer 2

Same parties, new agreement

Question 3

Novation

Answer 3

Same agreement, substituted party; all parties must agree

Question 4

Parol evidence rule

Answer 4

Prohibits the introducing of evidence at rial of oral or written statement made prior to or contemporaneously with the written contract; oral or written modifications after the contract are admissible in court

Question 5

For a material breach under common law, the non breaching party can be:

Answer 5

Discharged from the contract

Question 6

For a minor breach under common law, the non breaching party is:

Answer 6

not discharge, entitled to damages

Question 7

Punitive damages are only available for:

Answer 7

Fraud

Question 8

Intended vs. incidental beneficiaries (third party rights)

Answer 8

Intended (donee and creditors) - can enforce; incidental - can’t enforce

Question 9

Merchant’s firm offer

Answer 9

1) Must be a merchant; 2) must be in writing and signed; and 3) give assurances it will be kept open (no more than 3 months

Question 10

Auction with reserve

Answer 10

The seller does not have to sell unless an adequate bid is made

Question 11

Auction without reserve

Answer 11

Goods must be sold to the highest bidder

Question 12

Modifications under common law vs. UCC

Answer 12

UCC - no consideration is needed to be enforceable; Common law - consideration is needed

Question 13

Statute of limitation under UCC (How many years?)

Answer 13

4

Question 14

Four exceptions to the statute of frauds (does not have to be in writing) - SWAP

Answer 14

S: speciality manufactured goods, W: written confirmation; A: affirmed in court; and P: already performed

Question 15

For risk of loss to pass, what must happen?

Answer 15

Goods must be identified and parties agree

Question 16

Express warranty (3 requirements)

Answer 16

1) statement of fact or promise; 2) description or samples; 3) be part of the basis of the bargain

Question 17

Implied warranty of merchantability

Answer 17

Made by a merchant, goods are fit for their normal and intended purpose; triggered automatically upon a sale by a merchant

Question 18

Implied warranty of fitness

Answer 18

The seller is aware of the purpose the buyer is using the goods for, and knows that the buyer is relying on the seller’s skill or judgement; apples to any seller; for a particular purpose

Question 19

Disclaimer for implied warranty of title

Answer 19

By specific language or circumstances showing seller does not claim title

Question 20

Disclaimer for implied warranty of merchantability

Answer 20

Must mention “merchantability” (if written, must be conspicuous)

Question 21

Disclaimer for implied warranty of fitness

Answer 21

By conspicuous written disclaimer