Questions on Final Exam Flashcards by Jon Eric

If a grantor gives away real estate, that person then has the ______? (and for how long?)

Life Estate (until they die)

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This is the basic governing document of a corportation?

Articles of Incorporation

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Under the Statute of Frauds what is it called when you promise to pay the debt of another?

A guarantor

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What are two types of partnerships and the difference between them?

1) Limited Partner
2) General Partner - No Control, management

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The greatest interest you can own in a property is called what?

Fee Simple Absolute

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An easement is used when property can’t be sold due to what?

Zoning Ordinances

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What is the Statute of Frauds?

The law that say’s that all contracts need to be in writing.

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The purpose of a limited partner is to do what?

Limit Liability

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If an offer doesn’t specify how long it’s going to be open, what is the time allowed?

A reasonable period, based on the circumstances

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What’s the only thing that the court won’t gap fill, and why?

Quantitiy, because you can’t reasonably estimate it

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A promise for a promise is called what?

A Bilateral Contract

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What’s the purpose of a Subchapter S Corporation?

They don’t get double taxed

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What are one type of contract that due to it’s bargain for consideration is not valid?

Issusory contracts

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What are two types of mistakes that void a contract?

1) Bilateral Mistake
2) Unilateral Mistake

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What is the old law that determined if there was a meeting of the minds?

Subjective Meeting of the Minds

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Something that’s not really a contract, and both parties don’t consent?

A quasi contract

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What are the Subjective and Objective meeting of the minds based on?

1) Subjective -Thoughts
2) Objective -Actions

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This type of mistake is when before making the contract both parties are mistaken as to the same assumption?

Bilateral Mistake

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What are the two parties of a partnership?

1) General partners
2) Limited partners - Can’t control or manage

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Under this rule the terms of acceptance must be exactly the same as the terms of the offer?

The Mirror Image Rule

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If after reaching the age of majority a minor does something that binds them to the contract, what is it called?

Ratification

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A contract is within the Statute of Frauds if it cannot be?

Performed within one year from the time it is made

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When someone has to make sure they lessen their damages to a minimal amount what is it called?

Midigation

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What is the purpose of compensatory damages?

To make the person whole

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These are rules for operating a corporation?

**Bylaws**

Person who gets a property is called what?

**Grantee**

A right to use a part or section of another's property?

**An Easement**

When the grantor gives away the life estate and the right to live there, (and it's assumed that if the grantee dies they get it back) what's their interest called?

**Reversionary**

What must the damages be before they can be considered **consequentia**l?

1) **Unique** 2) **Foreseeable**

A basic definition of a contract is a?

**A Promise**

These contracts are in people's control and are not enforceable?

**Illusory Contracts**

What are two types of tenancy?

1) **Joint Tenants** 2) **Tenants in Common**

What does fee simple absolute imply?

Ownership of the **whole bundle of rights**

If partyX gives partyY and easment his propery is what? and what does that make partyX, and what is partyY?

**Burdened, Y is dominant X is servient**

What is one reason an illusory contract may be invalid?

Because it is **gratuitous (beyond a stated amount)**

All contracts that need to be in writing fall under what?

**Statute of Frauds**

A property that is **burdened** by an **easement** is called what?

**Servient**

Punitive damages are often awarded in contract cased? T/F?

False

What benefits and restrictions do Subchapter S Corporations have?

1) **Don't get double taxed** 2) **Can only have 35 people**

In this type of agreement, if one tenant dies the property goes to their heirs?

**Tenants in Common**

You have to pay the debt of another? T/F?

**False**

What is a Joint Venture?

1) **A limited purpose** 2) **Can't be continued** 3) **Can't be sued**

Someone transfers a deed and retains the life estate, what is the property given called? (opposite of a reversionary)

**Remainder**

Where does a deed get recorded?

**The registry of deeds**

When can an offer be withdrawn?

**Anytime**

In this type of agreement, if one tenant dies the property goes to the other?

**Joint Tenancy**

What is a sole proprietorship?

**One person**

What must there be for there to be a contract?

1) **An objective meeting of the minds (an agreement)** 2) **Bargain for Consideration** 3) **Two or more parties of legal age (not under the influence of drugs or alchohol, not incapacitated)** 4) **A legal purpose (can't be illegal)**

A **promise** for an **act** is called what?

**Unilateral Contract**

How many people are allowed in a Subchapter S corporation?

**up to 35 People**

What is an example of a quasi contract, but gives damages (based on the term "he gets what he deserves")?

**Quantum Meruit**

People often sue for Nominal damages? T/F?

**False**

If a court determines a person to be **incompetent** or if they **have a legal gardian** what is the contract called?

**Void**

If X starts a computer business and he is a general partner with Y and they are "in the hole" for $1 million, how much is both X and Y liable for?

**$1 million**

The Status for a contract by a **minor** is what?

**Voidable by the minor**

The Uniform Commercial Code states that sale of goods over the price of ______ or more is not enforceable unless it is \_\_\_\_\_\_\_?

**$500, in Writing**

What are the types of **damages** in contract cases?

1) **Nominal** 2) **Punitive** 3) **Consequential** 4) **Compensatory**

What two thing may seem illusory but are not, and what are they required to act under?

1) **Requirements** 2) **Outputs** - **act in "good faith"**

This is when the courts create content for missing information?

**Gap-Filling**

Contracts in which both sides have completed their duties are executory? T/F?

**False**

**Consequential** damages are only awarded if?

The party knew about the **special circumstances**

The property that benefits from an easement is called what?

**Dominant**

What price do minors have to pay for necessities?

**A reasonable price, not necessarily the agreed upon price**

What law do we use **today** to detemine if there is a meeting of the minds?

**The Objective Meeting of the Minds**

The mailbox rule requires the terms of the acceptance match the terms of the offer exactly? T/F?

**False** (this is the the mirror image rule)

T/F A partneship needs to be in writing?

**False**

If PartyX agreed to deliver 1,000 widgets to PartyY by a certain date (date is given), and it's agreed if they don't they must pay $10,000. These damages are called?

**Liquidated Damages**

If a life estate goes back to the grantor because the grantee dies, it is called what?

**Reversionary**

Legal detriment always entail economic losses? T/F?

**False** (because the court doesn't measure value)

What are two ways that legal detriment doesn't entail economic losses?

1) **If the bargain for consideration is not of monetary value** 2) **If the party is giving up a right to do something that they legally have the right to do (if you agree stop drinking for $20,000 and they don't pay, you can sue if you're over legal age)**

What are **laws**?

**Rules** that **govern society**, which is in a **constant state of change**.

If someone forgets to put type the of tenancy in a deed, then what type is used by default?

**Tenants in Common**

What is one way around the Mailbox Rule?

**To specify in the contract**

2 or more people for a single or limited purpose?

**A Joint Venture**

Minors are obligated to pay for which contractual agreements?

**Those involving Necessities**

What is the consideration in a bilateral contract?

1) **Legal detriment** 2) **Legal benefit**

This type of mistake is when only one party makes the mistake?

**Unilateral Mistake**

If party X says he was going to mow party Y's lawn (for $40) BECAUSE **THE SPRINKLER COMPANY "Party A" WAS COMMING AND NEEDED IT CUT TO INSTALL THEM**, but party X didn't show up and party Z mowed the lawn for $50. But the sprinkler company also charged $1,000 **because they couldn't install the sprinklers**. How much does party X owe partyY?

**$1,010 Consequential damages (if he knew about "Party A")**

If you use someone's property for over 20 years (can't be with permission) and you aquire ownership it is called?

**Adverse possession**

If party X made an agreement to mow party Y's lawn for $40 but he didn't come, and party Z mowed party Y's lawn for $50, how much does party X owe party Y?

**$10 comensatory damages**

If a contract is **still pending** it is called what?

**Executory**

What are the type of damages that are **agreed upon ahead of time**? (often used in purchase and sale agreements)

**Liquidated Damages**

Damages that involve only a very small monetary reward are called Liquidated damages? T/F?

**False** (they are called **Nominal Damages**)

The party who gives a property is called what?

**Grantor**

What ways are tenants in common granted?

1) **If in the will it goes to the person in the will** 2) **otherwise it is given to their hiers by intestacy**

If a contract is **finished** it is called what?

**Executed**

If something can't be completed within one year it must be \_\_\_\_\_\_, under the Statute of Frauds?

**Written**

A Promise (contract) must be supported by what?

**A bargain for consideration**

If you wish to make it so an offer can't be withdrawn you can create what?

**An option contract (must be additional consideration)**

What is the rule that says that "acceptance of a contract is effective upon dispatch"?

**The Mailbox Rule (the first person to put it in the mail takes priority)**

What are two types of remedies? (midterm)

1) Legal 2) Equitable

What are the three types of Equitable Remedies?

**1) Specific Performance** **2) Rescission** **3) Restitution**

What is **Specific Performance**?

**Party is instructed to perform under the terms of a contract**

What is **Rescission**?

**When parties are put back into the legal position they were in BEFORE the contract was create**d

What is **Restitution**?

**After rescission, parties must return any benefit or item unjustly attained**

As an inducement for a party to make a promise, that party (promisor) must recieve \_\_\_\_\_\_\_\_, or the other party (promisee) must suffer a ______ or both?

**1) Legal Benefit** **2) Legal Detriment**

Al promises to sell Mary his car for $2,000. Mary promises to pay Al $2,000 for his car. What have Al has **incurred and recieved**? What has Mary **incurred and recieved**?

**Al** - Incurred Legal Detriment (sold his car which he had no prior obligation to do) - Received Legal Benefit (payment of $2,000, which he **Mary** - Incurred Legal Detriment (must pay $2,000, which she had no prior legal obligation to do) - Received Legal Benefit (Legal right, which she did not previously have, to Al's car)