Final Exam Flashcards
Emancipation
The declaration that a minor is no longer under the care or custody of parents or a guardian
Adjudicated incompetent
A courts determination that one in incompetent and cannot act in their own best interest
Minor
Also referred to as an infant. A person under the age of majority, usually meaning under age 18. Someone who is not an adult.
Ratify
To validate a contract after it’s execution
Alternative dispute resolution
ADR- non court proceedings where parties can settle disputes
Reliance damages
Damages that are awarded when compensatory damages are too speculative. It puts the party in the position as if the contract had never been made
Reformation
A re-writing of the contract. Used when court is invoking severability of a clause
Specific performance
An equitable remedy. Court orders the breaching party to perform the obligations of the contract
Foreseeable
Something a reasonable person would anticipate happening as a result of their actions
Legal remedy
Party seeks money damages
Consequential damages: special damages
Losses that do not flow directly and immediately from a breach.
Liquidated damages
Damages that the parties agree to in advance and is made a part of the contract
Restitution
To return to the non breaching party the property in question or it’s value
Equitable remedy
Usually damages other than money. Based on fairness
Guardian ad litem
A court appointed person to serve as an advocate, usually for a child, and to act in the best interest of that child during a specific hearing or specific litigation
Cognitive test
Determined by ones inability to understand the overall nature and consequences of a transaction
Volitional test
Determined by ones failure to act reasonable with respect to a particular transaction
Guardian
A person or entity appointed to look after a person. A guardian of a person.
Necessities
Things considered indispensable to life usually meant to be food clothing and shelter.
Conservator
A person or entity appointed to look after a persons assets. A guardian of assets
Click wrap agreement
Relevant to internet and software licensing. Requires user to affirmatively ascent to use by clicking ok or I agree button
Party to be charged
The party against whom enforcement of the contract is being sought. The party attempting to avoid contract liability
Consigner
One who borrows money jointly with another. One who is obligated jointly for the repayments of a debt
Statute of frauds
A statutory provision that requires certain contracts be in writing to be enforceable
Performance bond
A surety bond that guarantees performance of the contract according to the terms and specifications
Surety
One who agrees to be responsible for the debt of another of the other fails to pay it perform under the debt
Prenuptial agreement
Made in anticipation of marriage involving the division of property assets in the event of a divorce or other event. Aka antenuptial agreement
Subscribe
Literally to write underneath popular usage means to sign the document at the end of the printed instrument
MYLEGS is a mnemonic to help remember the six categories of contracts that fall under the statute of frauds
Marriage, years, land, estate debts of another, goods over $500, suretyship
Agent
One who acts on behalf of another
Straw person/buyer
A person who is not intended to have beneficial interest in the property but to who the property is conveyed to facilitate a more complicated transaction
Delegate/delegation
The transfer of a duty or obligation to another
Incidental beneficiary
A third party beneficiary who acquires no rights under the contract. They cannot sue on the contract
Equal dignity rule
If the statute of frauds requires a contract to be in writing then the agency agreement concerning that contract must also be in writing
Assign/assignment
The transfer of a right or property interest either by sale, donation, or other means of disposition
Novation
The substitution of parties to a contract thereby making a new contract as to the parties but not as to the terms and conditions
Intended beneficiary
A third party beneficiary intended to benefit from the contract and who Acquires rights under the contract.
Privity
Having a relationship to the issue it contract at hand
Agency coupled with an interest
The agent has a financial or personal stake in the outcome of the agency relationship
Uniform commercial code
A comprehensive set of laws governing commercial transactions between the us and territories
Sale
The passing of title from the seller to the buyer for a price
Predominant purpose
A contract that involves the provision of both sales and service - is the contract predominantly for a sale or a service
Chattel
An article of personal property; any species of property that is not land
Goods
Any tangible thing that is movable
Tangible
Capable of being touched
Intangible
Property that has no intrinsic value in and of itself but represents value. (Stock certificate-debt)
Good faith
Honesty in fact, the observance of reasonable commercial standards dealing in trade
Frustration of purpose
Contract that has no remaining value for a party because of some unanticipated event
Condition
An event not certain to occur
Cure
The attempt to make god on a context. Once breached can the breaching party make it right
Material breach
Breach of contract usually excusing the other party for future performed. Also known as a substantial breach
Mitigate
To limit or reduce damages
Force Majeure
Contract provision excusing performance for an event such as an act of god, labor strike, accident, transportation problem or other thing the parties may choose to cover
Anticipatory breach
A belief that a party will not perform. It must be a clear cut belief, cannot be based on an assumption
Time is of the essence
Any delay in performance constitutes a breach
Repudiation
A party’s words or actions that indicate they intend to breach the contract or not to perform the contract
Recision
A mutual agreement between the parties to cancel the contract
