Focus Areas Flashcards
Parties who may lack capacity to contract
- Intoxicated
- Minors
- Artificial Entities
Why may an Artificial Entity lack Capacity to Contract?
The corporation’s bylaws don’t grant power to contract
Duress is a situation lacking in assent but what does it mean?
Use of restraint, violence or threats to get someone to enter into a contract.
How is Innocent Misrepresentation different to Fraud?
There was no INTENT to mislead
Improper use of power or trust to pressure someone is called…
Undue influence
Undue influence often happens as a result of…
A close or intricate relationship
A seller being mistaken about a key product fact lacks assent due to
Innocent misrepresentation
5 situations lacking Assent
- Fraud
- Mistake
- Duress
- Undue Influence
- Innocent Misrepresentation
Legal Purpose is a key element of a contract because…
The contract cannot be created do ask someone to do something illegal
A contract not completely performed by all parties is called?
Executory
A homeowners policy is classed as executed or executory?
Executory - the Insurance Company’s promise to indemnify isn’t done until the policy period is over
Who is the right of avoidance reserved for in a ‘Voidable contract’?
The innocent party
Under Commercial Law - define a Merchant?
A person/company selling goods as their normal course of work or business
What is the purpose of UCC Article 2?
Laws relating to the sale of goods excluding MONEY
Sale of goods - UCC Article 2 is a model code adopted into
State Law
