Mortuary Law Exam 2 Flashcards
obligation according to law; responsible
liability
Webster’s Dictionary
condition of being actually or potentially subject to an obligation; condition of being responsible for an expense
liability
Blackstone’s Law Dictionary
Agreement between two or more competent persons which is enforceable by law
Contract
Elements of a contract
Offer
Acceptance
Consideration
Expression of willingness to enter into a contractual agreement. (Funeral Home)
Offer
Agreement to an offer resulting in a contract. (Family)
Acceptance
What the promisor demands and receives as the price for a promise.
How one will pay cash, check, money order, property, etc.
Consideration
Parties to a contract
Offeror
Offeree
party who initiates or makes an offer.
Offeror (FH) -
person to whom an offer is made.
Offeree (Family accepts or rejects) -
Types of contracts
Express
Implied
Quasi
Parties express their intentions at the time of the agreement. Oral or written
Funeral contract should be in writing
Examples: At need funeral Prefunded funeral (also referred to as Pre-Financed)
Express contract
Contract terms are implied by acts or conduct of the parties.
Example
First call
This type of contract becomes an express contract.
The person contracting is not necessarily the one responsible for bill
Doing so on behalf of the estate
Implied contract
Fictional contract applied by a court for a person who is unable to contract for him/herself.
Raises an obligation in law where, in fact, the parties made no promises, but imposes liability on injured party
Example
Emergency medical care, death, etc.
Quasi contract
Land
Anything attached to land
Real property
Tangible or intangible property
Person effects Jewelry Furniture Money Automobiles Stocks/bonds
Personal property
The condition of leaving a WILL at time of death, may or may not provide for funeral expenses.
• Testate
The state or condition of dying without having made a will, NO WILL.
• Intestate
(NOT able to meet debits)
Liabilities exceed the assets
Estate is unable to pay debts of the decedent or the estate is unable to pay the debt/bills of the estate
Insolvent estate
Amount of money available to pay funeral expenses.
Are the funeral expenses proportional to the size of the estate?
Related to “solvency”
Size of the estate
(One can meet its debits)
Solvency of the estate
Assets exceeds the liabilities / more cash than expenses – bills.
Solvent estate
Liabilities exceed the assets, less cash than expenses – bills.
Insolvent Estate
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“As a rule, the estate is primarily responsible to pay the reasonable and necessary expenses for disposing of the body. If the estate has property, the funeral director may look to it for payment of the funeral bill. The funeral bill is not a debt of the decedent but is a charge against the estate and must, at least in part, be paid before any debts left by the decedent are met. The amount of the funeral bill which receives this preferential treatment depends upon state law.”
Courts consideration when determining reasonableness of charges:
Status in life
Status in life
Standard of living Religious
“Station in life”
Status in life
Economic Social
“Lifestyle”
Reasonableness of the charges
Size and solvency of the estate Right of creditors to collect payment Station in life of the deceased Decedent’s religious faith Decedent’s fraternal memberships Local and contemporary customs