Defenses Flashcards
Lack of capacity— a minor can disaffirm a contract in part before reaching the age of majority. T/F
False— the minor must disaffirm in whole AND must return anything they received under the contract that still remains at the time of disaffirmance
Do minors have the capacity to enter contracts that bind themselves?
Generally no. But adults are bound on their contracts with minors
Necessaries: minor may disaffirm a contract for necessaries but will be _____ for the ______.
Liable in restitution; value of benefits received
Affirmance upon age of majority can be made either ____ or ____, which requires ____.
Expressly; by conduct; failing to affirm or disaffirm within a reasonable period after reaching 18
Contracts induced by duress or undue influence are ____.
Voidable— can be rescinded as long as they’re not affirmed
When neither party is aware of ambiguity OR both parties are aware, _____.
No contract unless both parties intended same meaning
When one party is aware of ambiguity, _____.
Binding contract based on what ignorant party reasonably believed to be the meaning of ambiguous words
Mutual mistake about existing facts may cause the contract to be voidable by the adversely affects party if:
Mistake is on a basic assumption
Has a material effect on the exchange
Party seeking avoidance didn’t assume the risk of the mistake
Unilateral mistake [will/will not] prevent the formation of a contract.
Will NOT.
But if the non mistaken party knew or had reason to know of the mistake by the other party, contract is voidable by the mistaken party
Unconscionability requires ____ and _____, tested [when/after] the contract was formed.
Unfair surprise; oppressive terms
When the contract was formed
6 covered categories for the Statute of Frauds:
MYLEGS
Marriage Year Land sales Executors Goods over $500 Sureties
A contract measured by a lifetime (e.g. a promise to work “until I die”)— is this within the SoF?
No. Person can die at any time
A musician is hired in May 2021 to play a 2-hr concert in August 2022. SoF?
Yes
Interests in land must be evidenced by a writing. Not only real property but also: (at least 3)
Leases for more than 1 year Easements for more than 1 year Mortgages Fixtures Minerals or structures to be severed by the buyer
Authorization for an agent to sell land that’s under the SoF does not have to be in writing. T/F
False, given the equal dignity rule, because the underlying deal is a land sale.
When can a contract be out of the SoF and no longer require a writing signed by the party to be charged?
(4, mnemonic)
SWAP
Specially made goods
Written confirmation by a merchant
Admission in court
Performance
Suretyship is the promise to _____.
If the main purpose of the promisor is to ____, the contract is not within the SoF.
Pay the debt of another
Serve a pecuniary interest of his own
Modifications must be in writing only if____.
The modified contract would be within the SoF
Clauses prohibiting oral modification are generally ____ in common law contracts, and _____ in Article 2 contracts.
Unenforceable (CL)
Enforceable (Art 2)
A buyer’s part performance on land sale contracts require ___ of the following: _____. This allows the buyer to enforce an oral land sale and takes the contract out of SoF.
At least two; payment (in whole or in part), possession, and/or valuable improvements
____ performance of service contracts allows the contract to get out from under the SoF, while ____ performance does not.
Full (no SoF);
Partial (SoF still)
Sale of goods exception to SoF means that the contract for goods a buyer has already accepted and paid for does not need to be in writing. T/F
True. And remember that the other goods, if more than $500, still must be in writing or the contract is not enforceable
If a person pays $1000 out of $5000 for a sofa on an oral contract, does this take it out of SoF (and therefore means that the buyer can enforce the contract if the seller then backs out)?
Yes because the sofa is an indivisible object
Seller can enforce an oral contract without a writing even when it should fall under SoF if the goods were to be _____ and the seller made a ______.
Specially manufactured; substantial beginning in manufacture or commitments for the purchase
