LAW FINAL Flashcards
Statute of frauds (definition)
Merely a writing requirement If oral only, unenforceable
Statute of frauds (5 types)
- LAND
-Part performance can substitute for writing - Cannot be performed in one year
- Measure from date contract formed
- Lifetime contracts - oral OK - Prenuptial agreements
- Collateral Promises
- UCC – Sale of Goods greater than $500
Statute of frauds (3 Writing requirements)
- Formality not required
- Ok if several different documents
- Signature needed of party being sued
Parol Evidence rule (Definition)
If a written contract, no evidence can be admitted about statements, writing from before the contract was formed.
(Evidence of later statements can be admitted)
Parol Evidence rule (2 Exceptions Where earlier evidence ok)
Evidence before contract formed can be admitted to
1. To resolve ambiguities or gaps
2. To prove fraud
Delegate Duties (definition)
have another perform for you
4 Limits on delegation
- Special Skills (a quarterback can’t delegate to another quarterback for a game)
- Special Trust
- Recipient of performance (obligee) will be getting something different
- Contract can prohibit
Assign Rights (definition)
transfer your rights to another
4 Limits on assignments
- Prohibited by Statute (Workers Comp)
- Personal Services (a butler u contract to be a butler for yourself u can’t assign to someone else)
- Significantly Alters Risk of the Obligor (assigning insurance policy to someone else)
- Contract can prohibits rights to be assigned
- Exception = $
Assignment & delegation (4 Basics)
- Can occur separately or together
- Can assign or delegate some or all
- Delegatee of duty must accept
- Delegator of duty remains responsible
notice issue (Assignment to 2 Assignees)
Most states The first person that gets assigned the obligation regardless of notification to the obligor
3rd party beneficiaries (who can sue)
- Any intended beneficiary can sue
- Creditor (landlord in sublease agrement)
- Donee (gift recipient) - Incidental Beneficiaries cannot sue
3rd party beneficiaries (2 types)
1.Present when contract is formed
2. Contract calls for another to be benefitted
Discharge of duties
party has done all that is needed under the contract
Performance
doing what contract requires
Substantial Performance
doing almost all of what contract requires
- Some amount of $ could be subtracted if tasks not complete cost money
Mutual Rescission
Both agree to call off the deal
(Enter into another contract to discharge the old one)
Agreement to discharge
(4 ways)
1.Mutual Rescission
2.Novation
3.Substituted contract
4.Accord and Satisfaction
Novation
Replace one party
Requires all 3 parties agree
(A sublease structured like this means the original leaser can’t be sued)
Substituted contract
new contract immediately discharges duties of 1st contract
Accord and Satisfaction
New agreement to replace old
- Key: in settlement of dispute over old agreement
(Discharge of duties in old contract does not occur until new agreement is performed)
(If accord not performed, can sue on either original or accord)
Impossibility to discharge
(4 ways)
- Death of promissor
- Destruction of subject matter
- Supervening Illegality
- Death of promisee
Supervening Illegality
If importing 10 patriots, 2 have arrived, importing parrot becomes illegal, you have to pay for the 2 but rest of contract discharged
Free
3 Subjective impossibility
- Must be due to unforeseeable circumstances
- Commercial Impracticability
- Frustration of Purpose
Commercial Impracticability
- Makes it so contract is extremely burdensome to perform
- Price change usually not enough
Frustration of Purpose
No harder to perform, but no longer “makes sense”
Damages
Used to compensate the non-breaching party for anything short of full performance
Damages calculated
No single damage formula
Court has flexibility in remedies
benefit of bargain (definition)
- Compare the values of: What was promised To What was delivered
- (If seller breaches price paid is not relevant!!)
- Can’t use benefit of bargain if can’t determine the 2 values
cover transaction
another buyer,
another seller,
someone else to do the work, or
other work to do, etc., etc.
Benefits of bargain: alternate performance
After someone breaches, the non-breacher finds a “cover” transaction
Damages = what it takes for non-breacher to get same “deal”
Consequential damages
Must be Foreseeable OR Known to breaching party