Fundamentals | Unit 10

Question 1

What are the essentials of a valid contract? (5)

Answer 1

1. Mutual agreement (offer and acceptance)
2. Consideration
3. Legally competent parties
4. Legal purpose
5. Consent

Question 2

Parol Evidence Rule

Answer 2

A written contract takes precedence over oral agreements

Question 3

Statue of Limitations in PA for breach of contract

Answer 3

Four years

Question 4

Liquidated Damages Clause

Answer 4

Specifies the amount of money to which the seller is entitled if buyer breaches the contract

Question 5

Which contracts does The Plain Language Consumer Contract Act not apply to? (3)

Answer 5

1. Deed & Mortgages
2. Certificates of Title & Title Insurance
3. Insurance Policies