Exam 3

Question 1

What is governed by Uniform Commercial Code (UCC)

Answer 1

Mainly concerned with sale of goods and securities.

Question 2

What is governed by Common Law

Answer 2

Mainly deals with real estate, service, insurance, intangible assets and employment contracts.

Question 3

UCC

Answer 3

Contract for Sale of Goods

Question 4

Common Law

Answer 4

Contract for Services and Real Property

Question 5

What is more important by figuring what would cost more

Answer 5

Substantial (Predominant) Factor Test

Question 6

Up to what point can you revoke an offer?

Answer 6

Up until Acceptance

Question 7

What are the 3 parts of a contract?

Answer 7

Offer
Acceptance
Consideration

Question 8

When you change the offer?

Answer 8

Counter-offer

Question 9

What is the difference between void and voidable contracts?

Answer 9

Void is always bad
Voidable is what someone can get out of

Question 10

Voidable Contract

Answer 10

A valid contract that can be carried out if both parties agree. Someone can still get out of (few exceptions)

Question 11

Void Contract

Answer 11

Unenforceable contract from creation

Question 12

What are the exceptions to voidable contracts?

Answer 12

Military service, student loans, and necessities

Question 13

What is a selling strategy? (This shirt is made of the softest cotton in the world.)

Answer 13

Puffing

Question 14

What is the difference between puffing and guarantee?

Answer 14

Puffing is exaggerating to make a sale. (softest cotton in the world.)
Guarantee is the truth about the product. (100% cotton)

Question 15

Concept that states that you finished the contract after doing the majority asked.

Answer 15

Substantial performance

Question 16

Available in most contracts, but not all

Answer 16

Substantial performace

Question 17

Contracts so bad that they shock your conscience

Answer 17

Unconscionable Contracts

Question 18

Seek to release yourself from all responsibility.

Answer 18

Exculpatory Clause

Question 19

Misrepresentation with intent

Answer 19

Fraud

Question 20

Giving false or misleading information

Answer 20

Misrepresentation

Question 21

What is the difference between misrepresentation and fraud?

Answer 21

Fraud is misrepresentation but with INTENT

Question 22

What happens when you sell your business and buyer does not want to compete?

Answer 22

Covenants not to compete

Question 23

What limits the seller from going into business in a certain area for a certain amount of time?

Answer 23

Covenants not to compete

Question 24

Doing something that you would not normally do under the influence of someone close to you

Answer 24

Undo influence

Question 25

Confidential relationships for undo influence

Answer 25

lawyer/client parent/child

Question 26

Contracts are sometimes not enforceable to this age group (few exceptions)

Answer 26

minors

Question 27

What exceptions are there to not enforcing contracts with minors?

Answer 27

military, student loans

Question 28

Making someone enter a contract against their better judgement or without meaningful choice due to force/threats

Answer 28

duress

Question 29

You must have this in order to create a contract

Answer 29

Complete meeting of the minds

Question 30

Where all parties come together and agree on the contract

Answer 30

Complete meeting of the minds

Question 31

Contract with/over the internet

Answer 31

Point and Click Contract

Question 32

These are invitations to buy/sell These are not contracts

Answer 32

Advertisements

Question 33

A contract that has not yet been fully performed or fully executed

Answer 33

Executory contracts

Question 34

A contract where both parties have completed their duties

Answer 34

Executed contracts

Question 35

What must be in writing

Answer 35

When land is involved

Question 36

Giving someone the right to use part of your land

Answer 36

Easement

Question 37

Interest of land (easement)

Answer 37

Must write down

Question 38

Contracts with illegal subject matter, incompetent people (deemed by judge)

Answer 38

Contracts void on face

Question 39

Provision in contract that lets you out of the contract due to unforeseen issues (tornado, covid, hurricanes)

Answer 39

forced majure clause

Question 40

substitute a party in a contract

Answer 40

novation

Question 41

example of novation

Answer 41

A and B have a contract. B cannot fulfil their duties, so they call C to replace them. C takes B's place in contract. A and C now have a contract and B has no more obligation.