Questions on Final Exam Flashcards
If a grantor gives away real estate, that person then has the ______? (and for how long?)
Life Estate (until they die)
This is the basic governing document of a corportation?
Articles of Incorporation
Under the Statute of Frauds what is it called when you promise to pay the debt of another?
A guarantor
What are two types of partnerships and the difference between them?
1) Limited Partner
2) General Partner - No Control, management
The greatest interest you can own in a property is called what?
Fee Simple Absolute
An easement is used when property can’t be sold due to what?
Zoning Ordinances
What is the Statute of Frauds?
The law that say’s that all contracts need to be in writing.
The purpose of a limited partner is to do what?
Limit Liability
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
What’s the only thing that the court won’t gap fill, and why?
Quantitiy, because you can’t reasonably estimate it
A promise for a promise is called what?
A Bilateral Contract
What’s the purpose of a Subchapter S Corporation?
They don’t get double taxed
What are one type of contract that due to it’s bargain for consideration is not valid?
Issusory contracts
What are two types of mistakes that void a contract?
1) Bilateral Mistake
2) Unilateral Mistake
What is the old law that determined if there was a meeting of the minds?
Subjective Meeting of the Minds
Something that’s not really a contract, and both parties don’t consent?
A quasi contract
What are the Subjective and Objective meeting of the minds based on?
1) Subjective -Thoughts
2) Objective -Actions
This type of mistake is when before making the contract both parties are mistaken as to the same assumption?
Bilateral Mistake
What are the two parties of a partnership?
1) General partners
2) Limited partners - Can’t control or manage
Under this rule the terms of acceptance must be exactly the same as the terms of the offer?
The Mirror Image Rule
If after reaching the age of majority a minor does something that binds them to the contract, what is it called?
Ratification
A contract is within the Statute of Frauds if it cannot be?
Performed within one year from the time it is made
When someone has to make sure they lessen their damages to a minimal amount what is it called?
Midigation
What is the purpose of compensatory damages?
To make the person whole
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 consequential?
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 created
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)
