NY K Law Flashcards
Article 2A
Lease of goods (not property)
when offer cannot be revoked in NY (4 elements) ***
NY RULE: irrevocable if:***
- Signed,
- offer in writing
- with promise not to revoke,
- even without payment.
Under NY law, when can you revoke offer of unilateral K?***
NY RULE: An offer of unilateral K CAN be revoked until performance is completed.
General rule for MBE: Once offeree starts performance, offeror can’t revoke.
• NY NOTE: Infants cannot void the following contracts
(1) Life insurance contracts by ≥ 14.5 years old;
(2) Educational loans by ≥ 16 years old.
(3) ALL contracts by 18-year-olds;
(4) Realty contracts related to the marital home; and
(5) Contracts involving artistic or athletic services.
• NY NOTE: re adjudicated re unadjudicated incompetent – is contract made by such an incompetent void or voidable?
o Adjudicated incompetent—Contract void
o Unadjudicated incompetent—Contract not voidable unless incompetent can restore other party to previous position.
Is “Past Consideration” consideration and binding? General v NY?***
o NY RULE: “Past consideration” is binding if
• (i) it is expressly stated;
• (ii) in a writing;
• (iii) the past consideration can be proven;
• (iv) Signed by the promisor.
o MBE RULE: Not consideration at all! Cannot bargain for something that has already been done.
Contract Modification [Common Law vs Art. 2 vs NY]
o Common law—New consideration is required to modify a contract (Pre-existing Duty Rule).
o Art. 2 SOG—Consideration is NOT required to modify a contract, but you must show good faith.
o NY RULE: No consideration is needed IF modification is in writing, and signed by the party to be charged, or by his agent.
Partial Payment of a Debt - o Written Agreement to Forgive Balance - MBE v NY***
MBE RULE:
• If debt is undisputed, then no consideration. Partial payment does NOT forgive balance.
• If debt is in dispute, debtor would win and not be liable for additional payments
• NY RULE: Do NOT need consideration if the promise to forgive is in a signed writing.
Interest in land: it’s a defense to enforcement of interest in land K if agent not authorized in writing or ratified by principal. Called the? ***
NY RULE
o NY RULE: Equal Dignities Rule—An agent’s authority concerning real property must be in writing or the principal must ratify.
Is lifetime K within stat of frauds? MBE v NY
o Lifetime Contract
• MBE RULE: Not within SOF.
• NY RULE: DOES fall into SOF. Opposite of MBE rule.
How to determine if Lease of Goods for $1000 or More (Art. 2A) [NY ONLY] is within Stat of Frauds?
o NY EXAM TIP: Add up the TOTAL amount of lease payments.
What’s within stat of frauds in NY that’s not elsewhere? (3 things) ***
(1) Promise to pay a discharged debt.
(2) An assignment of an insurance policy or a promise to name a beneficiary of such a policy; and
* (3) Contracts to pay a commission or finder’s fee, unless an attorney, auctioneer, or licensed real estate broker is involved.*
Satisfactory writing for stat of frauds for lease of goods?
• Art. 2A Lease of Goods [NY ONLY]—Writing must state it is a lease; include quantity, duration, and rental payments; and be signed by Defendant.
NY exception to stat of frauds Transfers of Interest in Real Property Prong
NY RULE: SOF not applicable where there has been part performance of lease agreement.
NY exception to stat of frauds suretyship prong – MBE v NY
o “Main Purpose” Exception—
• MBE RULE: If surety’s main purpose is to benefit himself, rather than someone else, then no writing is required.
• NY RULE: There is NO main purpose exception.
