NC Contract Distinctions

Question 1

In essays, how to start a contract answer

Answer 1

outline where the law comes from

1. common law
2. UCC

Question 2

What are farmers?

Answer 2

merchants

Question 3

Hybrid contracts (goods + services) how to analyze

Answer 3

Look to see if the primary purpose is sale of goods and services are incidental or vicea versa

Question 4

When can a unilateral contract be revoked by an offeror in N.C.?

Answer 4

After performance has begun, offeror can still revoke the contract

-offeree maintains a cause of action for services rendered thus far (≠lost profits)

Question 5

Additional terms in UCC battle of the forms become part of the agreement unless?

(3)

Answer 5

1. the contract says “no additional terms”
2. Express provision saying no additional terms can be added; or,
3. The additional terms material alter the terms of the contract

Question 6

An arbitration clause in an employment contract added in a UCC battle of the forms?

Answer 6

Materially alters the term of the contract

Question 7

Detriment is defined as?

Answer 7

Legal Detriment Test

1. Foregoing an action they could have done; or,
2. doing something that they have a legal right not to do

Question 8

How are seals on a contract viewed in N.C.?

What if on UCC contract

Answer 8

Brings about a rebuttable presumption of consideration –> 10 years statue of limitations

(≠specific enforcement is sought)

No effect on UCC contract

Question 9

Statute of limitation for contracts in N.C.?

Answer 9

3 years

Question 10

Promissory Estoppel in N.C.

Answer 10

Does not permit promissory estoppel as affirmative relief = cannot use to enforce contract

Can use to get money back for unjust enrichment

Question 11

Statute of Frauds in N.C. Covers

4

Answer 11

1. sale of good over $500
2. Leases in land over 3 years
3. transfer of real property
4. commercial loan commitments by a loan by a bank over 50k

Question 12

Is an oral contract not performable within a year enforceable in N.C.?

Answer 12

Yes, it does not have to be in writing in N.C.

Question 13

An interest in land includes

Answer 13

1. mining rights
2. leases past 3 years
3. easements

Question 14

N.C. does not require writings for?

4

Answer 14

1. contracts that cannot be performed in one year
2. trusts in land
3. real estate brokerage agreements
4. marriage

Question 15

Part performance of an oral land sale contract in N.C.?

Answer 15

Can never be valid, no matter if paid for or if improvements are made

Can use an unjust enrichment theory to get money back if paid

Question 16

N.C. warranties protect who?

Answer 16

Seller liable to any natural person who is in the house of the buyer or is a guest of the buyer
+
Foreseeable user

-makes up for strict liablity

Question 17

Statute of limitation in a breach of warranty action in N.C.`

Answer 17

3 years after the breach

Question 18

When is the latest a breach of warranty action can be filed in N.C.?

Answer 18

6 years after the purchase of the good

Question 19

Minors have the power of avoidance in N.C. when?

Answer 19

≠an emancipated or married minor

Question 20

Economic duress in N.C.

Answer 20

Threat of breach of contract
+
Something more

Will be allowed

Question 21

Remedies for Breach in N.C.

Answer 21

1. Expectation Damages
2. Restitution Damages
3. Reliance Damages

Question 22

Damages for mental anguish can be recovered when?

Answer 22

For breach of contract when benefits were related to

dignity, solitude, sensibilities, mental concern

Question 23

Non-compete clauses enforceability

1. part of contract?
2. added later

Answer 23

1. no new consideration

2. new consideration needed

Question 24

How will a N.C. court interpret a contract with too broad a non-compete clause?

Answer 24

Blue Pencil Rule

-remove offending portion of the contract and enforce the rest

Question 25

What age must someone be in order to enter into a contract to borrow money for post-secondary education?

Answer 25

17 years old