R5 Flashcards
UCC (sale of goods)
generaly only requires the quantity term(Allows for minor changes on the contract)
Common lay
RISE (Allows for no changes on the contract ist a mirror rule)
must include all terms (Oferee, price, time, quantity, and nature of work.)
Real estate
Insurance
Service
Employment Law
Requirements for a contract
- agreement made upon offer and an acceptance
- Exchange of consideration something of legal value
- a lack of defence(Noone was intoxicated or frustrated)
Termination of an offer
By Offeror:
Can terminate any time before the offeree agrees including if he says it will be open for a period of time. (Unless the offeree pays money to keep it open)
By Offeree:
Once rejected can’t accept it if you change your mind, that would create a new contract even if it’s the same.
Termination by operation of law DIDI
Death (Except for option contract)
Incompetence
Destroyed
Ilegal
When is acceptance effective
When published/sent (Placed in mail box)
When is a rejection accepted
When received
To be effective, consideration must be
legally sufficient, which means something that the law recognizes as consideration.
Unilateral Contracts
Only have one offer and cant be counteroffered
The contract is made when completed
Contains one promise
When is a contract void
DAPIE
Destruction of the subget matter
Adjudicated incompetency
Physical duress
Illegal
Fraud in the execution
Contracts requiring writing
MYLEGS(Signature is required only by the defendant)
When considering Marriage
Agreements that cannot be completed within a year.
Interest in land
Executor
Sale of goods for $500 or more.
Surety(Pay the debt of another)
Unilateral mistake
is a defense to a contract if the nonmistaken party knew or should have known of the mistake.
A mutual mistake of a material fact
will make a contract voidable at the option of the adversely affected party.
Novation
the agreement is unchanged but one of the original parties is released and a new party is substituted into their place.
substituted contract
The original parties are both released from the original agreement but are both bound by a new agreement.
Accord and satisfaction
agreement to substitute one contract for another satisfaction is the execution of the accord
mutual rescission
the parties agree to release each other from a contract
The parol evidence rule
prohibits a party in a lawsuit involving a fully integrated written contract from introducing at trial evidence of prior or contemporaneous oral agreements that contradict the terms of final written agreements
When a contract for the sale of real property is breached
the non-breaching party can either recover compensatory damages
or obtain specific performance
(Cant use both)
specific performance
Available only in contracts for unique or rare property. A patent, by definition, is unique
The Statute of Frauds requires contracts involving the sales of goods to be in writing if they exceed $500 (MYLEGS). However, if any of these exceptions apply, an oral contract will be enforceable:
SWAP
Specially manufactured (custom) goods
Written confirmation between merchants
Admission in court
Performance
Under the Sales Article of the UCC, what is required for writing to be an enforceable contract?
The quantity of the goods
In a noncarrier case
Risk of loss passes from a merchant seller on actual delivery of the goods into the buyer’s possession.
Where the seller is not a merchant risk of loss
passes to the buyer upon tender of delivery of the goods.
In a sale or return
The buyer has title and risk of loss unless and until the goods are returned to the seller.
In a sale on approval
risk of loss passes to the buyer on approval of the goods.
On an anticipatory breach of contract
the nonbreaching party has a right to demand assurances of performance or to cancel the contract.
When a buyer materially breaches a contract
the seller may cancel and seek damages.
if the principal is disclosed
An agent generally is not liable on contracts that the agent makes on the principal’s behalf
the power of attorney
May limit the agents authority to specific transactions.
Duties of agents to principal
Loyalty (Disclose all that is going on and act on the principals main interest)
Obligation (obey all reasonable directions of the principal)
Reasonable care
Account (keep track of transactions)
When a subagent is appointed by an agent with authority to appoint a subagent
the subagent owes a duty to both the agent and the principal.
Constructive trust
The right to recover secret profits from an agent.
Indemnification.
duty to reimburse the agent for all expenses incurred by the agent in carrying out the agency.
the incapacity of the principal
An agency is terminated by operation of law
A third party can hold who liable when an undisclosed principal
Both the agent and the subsequently disclosed principal
