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REG'23 > GLEIM 18 > Flashcards

GLEIM 18 Flashcards

1
Q

In determining whether the consideration requirement to form a contract has been satisfied, the consideration exchanged by the parties to the contract must be

A

Legally sufficient - and intended as a bargained for exchange
- incurs legal detriment
-promisor receives a legal benefit

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2
Q

Violation of Statute of Frauds - rule

A

Gem orally contracted with Mason for Mason to manage’ Gem’s restaurant for 1 year, but Mason quit after 6 months.

  • Gem will lose because the contract could not be performed within 1 year
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3
Q

If a person is adjudicated insane or otherwise incompetent before a contract is entered into , the contract is what?

A

VOID and cannot be ratified (even after the person is later adjusted competent)
- All contracts are VOID

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4
Q

A donee beneficiary of a contract

A

Can sue the promisor if the promisee-donor has performed under the contract

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5
Q

Parol Evidence on changing price from 80 cents per book for 500 books to 70 cents orally at a later time. Oral agreement is ?

A

Unenforceable because Dunne failed to give consideration, but proof of it is otherwise admissible into evidence

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6
Q

For an offer to confer teh power to form a contract by acceptance (3) things

A
  • communication to the offerree in a communication made or authorized by the offerer
    -be sufficiently definite and certain
    -manifestation of an intent to enter into a contract
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7
Q

Contract purchase with certain REAL property rules (3)

A

-any amendment must be agreed to by both parties
-the statute of frauds applies to the contract
-If one party fails to perform the contract, the recipient can obtain specific performance

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8
Q

What circumstance will cause a discharge of contractual duties by operation of law

A

Impossibility of performance
- Person dies or is incapacitated
-change of law makes performance illegal

NOT - NOVATION - discharged by agreement, but NOT discharge by operation of law

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9
Q

Anticipatory repuidation

A

Is an express or implied indication that one has no intention to perform the contract prior to the time set for performance.

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10
Q

Selling Business to someone (rule)

A

Represents an assignment of all the business assets and rights owned and a delegation of whatever duties the seller was obligated to perform.

DOES NOT FREE seller from all liability to his creditors once the purchase is consummated

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11
Q

Statute of limitations - how many years?

A

4 - 5 years depending on state

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12
Q

Cause of action for fraud will be met if

A

Defendant made a misrepresentation with a reckless disregard for the truth

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13
Q

What type of conduct will make a contract VOIDABLE

A

Fraud in inducement - occurs when the defrauded party is aware of entering into a c contract and intends to do so. However, he is deceived about a fact material to the contract.

NOT - Fraud in execution
NOT physical coercion
NOT contracting with a person under a guardianship (judicially declared to be incompetent)

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14
Q

Transferring contract to another supplier to provide services

A

An assignment of rights and a delegation of duties by original contractor

NOT - only a delegation of duties to new supplier for original contract

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15
Q

IF CPA cannot prepare opinion by due date because of client’s failure to supply information to complete audit - IF CPA sues for payment still, will CPA win?

A

Yes, prevail based on the contract

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16
Q

18 month oral note - defaults after 14 months - is the borrower liable under oral guarantee?

A

Borrower is NOT liable under the oral guarantee because the promise was not in writing

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17
Q

Remedy of quasi-contract

A

Available although no contract was ever formed by court

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18
Q

Actions that will result in a discharge of a party to a contract (2)

A

Prevention and Performance
Accord and Satisfaction

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19
Q

Does UCC firm offer apply to sale of realty?

A

NO

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20
Q

What happens in a rejection of an offer, before acceptance window closes?

A

Rejection of an offer terminates it. An offerree cannot accept an offer after rejection is effective. An attempted acceptance after rejection is a new offer.

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21
Q

One criteria for a valid assignment of a sales contract to a third party is that the assignment must

A

Not materially increase the other party’s risk or duty

NOT - be in writing and signed by the assignor

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22
Q

if a buyer accepts an offer containing an IMMATERIAL unilateral mistake , the contract is?

A

VALID as to both parties

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23
Q

A contract of sale of an interest in real property must be in ?

A

Writing and signed by the party to be charged. The writing must state teh essential terms of the transactions.

Does not matter if another buyer placed $100 deposit on land.

24
Q

Does parol evidence rule apply to all writen contractrs, whether or not the statute of frauds requires them to be in writing?

A

Yes

25
Q

Will a building offer in a one month period be accepted if an inquiry to take 5k off , but then figured out a different buyer overbid and now want to take advantage of original offer (but still within one month)?

A

Yes, the offer is still valid and the seller has to sell to original offer and not with new buyer

26
Q

Life insurance claim - what is the receiver called?

A

Third party donee beneificiary

NOT proper assignee of Jone’s rights under the insurance policy

27
Q

Agree to sells a home for 100k in contract is silent regarding the time of payment and time of delivery of the deed.

A

The conditions involved are IMPLIED IN LAW

28
Q

First promise serve as valid consideration for second promise example

A

A debotor’s promise to pay $500 for a creditor’s promise to forgive the balance of $600 disputed debt

29
Q

Subleasing is allowed ; no need to get permission

A

Both assignments and subleases are permitted unless expressly prohibited by the lease. Public policy favors transferability of property.

30
Q

When is an adhesion contract most appropriate

A

realizes efficiencies that reduce transactions costs

31
Q

Elements of fraud (4)

A

1 - a false representation of a material fact
2 - scienter (knowledge of the falsehood or reckless disregard for its truth)
3 - intent to deceive
4 - reliance on the false representation that is both justifiable and detrimental

32
Q

Sell refused to go with sale, but already took 10k deposit and allowed buyer to move in. Who will win?

A

Under the provisions of the statute of frauds, buyer will win because he made down payment and took possession.

33
Q

Contractual assignments (3)

A

1 - right to receive installment payments
2 - right to receive royalties
3 - rights under an option contract

NOT allowed to be insured under a liability insurance policy

34
Q

Assignment of rights under a contract be valid?

A

1 - assignment was made without notice to the obligor
2 - assignment was made without delivery of an evidentiary document
3 - assignment was made without notice to the assignee

INVALID - the assignment was made WITHOUT the ASSIGNORS intent to transfer

35
Q

Traditional remedy for breach of contract (3)

A

1 rescission and restitution
2 reformation
3 injunction

NOT punitive damages

36
Q

Parol evidence (rule)

A

you can only bring items of admission after the contract started. Nothing before

37
Q

if a bank reassigns a note to a new person, an doesnt notify the borrower. What happens?

A

Borrower is not liable to the reassigned debtor for the payments because the bank failed to give the borrower noticed of the assignment.

38
Q

Mailbox rule does not apply if

A

The offer provides that an acceptance shall not be effective until actually received

39
Q

Accepting a CPA services without agreement to payment - what kind of contract?

A

An implied in fact contract

NOT an implied in law contract

40
Q

Define Rescission

A

Mutual rescission is a new contract in which parties agree to discharge their obligations under a prior contract and are restored to their original positions

41
Q

When is time price doctrine may apply?

A

With large retailer charging 18% interest on unpaid balances

42
Q

In contrast to CPA offering services; repairing a broken window at a later time requires what?

A

Price involved

43
Q

What legal standard is used by US courts to determine whether a contract is validly formed or breached?

A

An objective standard of law

NOT a comparative professional standard of law

44
Q

to prevail in an action for innocent misrepresentation, the plaintiff must prove

A

the misrepresentations concerned material facts

NOT the defendant made the false statements with a reckless disregard for the truth

45
Q

A valid contract is formed when

A

It has all elements
- mutual assent
-consideration
-capacity
-legality

46
Q

Minors are liable for what?

A

Food, clothing, shelter, medicine, and tools of a trade

47
Q

What is recoverable by the non breaching party when a contract is breached (2)

A

Foreseeability of damages
Mitigation of Damages

48
Q

Refusing to sell a building to buyer. Buyer is entitled to what?

A

Compensatory damages or specific performance

NOT consequential damagers or punitive damages

49
Q

Define punitive damages

A

Punitive damages are the payment that a defendant found guilty of committing a wrong or offense is ordered to pay on top of compensatory damages. They are awarded when compensatory damages—the money given to the injured party—are deemed to be insufficient. Punitive damages go beyond compensating the aggrieved party.

50
Q

Certain contracts have absolutely no effect and are not recognized under law - if entered in agreement it is what?

A

VOID

NOT - unenforceable or voidable

51
Q

Assign debt to a bank, when paid by customer who does Bank need to collect from?

A

Only the BANK, not the original assignor.

52
Q

In a contract to sell a house and sufficient amount of land - the buyer sues the seller for backing out. Who will win?

A

The seller will win because the agreement is not reasonably definite

53
Q

Statute of frauds (rule) ; only on price of goods ; NOT SERVICES

A

Enforceable because the work could be completed within 1 year

54
Q

Required elements of a contract(4)

A

offer and acceptance
consideration
legal capacity
and legal objective or purpose

NOT in WRITING; however some contracts are not enforceable unless a writing signed by the defendant evidences the contract

55
Q

Job offer - got on Feb 19, have until Feb 23. But given to someone else on Feb 20 who accepted. Accepted by mail on Feb 20, now what?

A

The original acceptance was effective when mailed.

REG'23 (8 decks)

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