Page 26 Flashcards
Why does a modification not fall within parol evidence rule?
Because it happens after, not before or contemporaneous with the contract being made
What is the basic idea of a merger clause?
That all prior communications are merged into the written agreement (makes a writing a total integration)
What are the two exceptions to merger causes?
- instrument is obviously incomplete
- merger clause was included because of fraud, mistake, illegality, or any reason to set aside a contract
What is the plain meaning rule?
When a writing or a term is unambiguous on its face, it is interpreted according to its plain meaning, and you can’t use extrinsic evidence to interpret it
Is the plain meaning rule accepted by the UCC?
No, because many words are ambiguous and can’t be figured out just by looking at the writing
If parties have agreed to a condition occurring before a contract is effective, and that doesn’t happen, can the failure of the condition be shown even if there was no record?
Yes, because of the absence of finality. Agreements don’t take affect until the condition occurs, so there is no contract until that happens
Can life and preservation of the body have material measurable value to be consideration?
Yes
Can a moral obligation be sufficient consideration to support a later promise to pay if the Promisor got a material benefit?
Yes
What are consideration substitutes?
- CL: promissory estoppel
- UCC: merchant’s firm offer rule, and modification to a contract
What is an infant?
Anyone under 18, and that counts at the very first moment of the day before his 18th birthday
Once an infant avoids a contract, what happens to the transaction?
It is treated as a void from the beginning
What are the two views about infants disaffirming conveyances and reclaiming real property from a later BFP?
- CL: can reclaim RP
- UCC: the disaffirmance has no effect on later BFP
What are transactions an infant cannot avoid?
- contracts to support a child out of wedlock
- necessities of life provided to his kids
- necessities for himself (liable for reasonable value)
- bail bonds
- his tort
- received benefits under a contract
- insurance/banking/education loans
What are the things that are considered necessities?
Food, shelter, clothing, medical services, legal services, education
Infants are liable for their torts, but what is a tricky situation?
If the tort is really a breach of contract, the infant cannot be sued for it
If an infant willfully misrepresents his age, can he still use his powers of avoidance to avoid the contract?
Yes, but the defrauded party can avoid the contract on grounds of fraud
Are principal minors liable for torts committed by their agents within the scope of their employment?
Yes, but split about this
What is the uniform transfer to minors act?
Allows a custodian to sell the infant’s property and reinvest the proceeds
What is disaffirmance?
The power for an infant to avoid a contract, that can happen anytime before ratification, and is irrevocable
When can an infant disaffirm a contract?
- majority: only after he has reached 18
- minority: can be before
If an infant tries to disaffirm a contract, can he just enforce some parts and dissafirm others?
No, the whole contract is avoided
What is a ratification?
A promise to perform a voidable obligation (can’t happen until person has reached majority and infant must know the legal consequences).
- majority: everyone presumed to know the law
- minority: no ratification without full knowledge of legal consequences
If you were almost 18 and enter a contract, then turn 18 and promise to perform, is that contract enforceable?
Yes even if there is no new consideration
