R5 and R6

Question 1

What type of conduct generally will make a contract voidable?

Answer 1

• Fraud in the inducement (terms are not as represented)
• Innocent misrepresentation
• Duress (economic)
• Undue influence
• Mutual mistake
• Unilateral mistake
• Minority
• Intoxication

Question 2

What type of conduct generally will make a contract void?

Answer 2

• Fraud in the execution (tricked someone into signing)
• Duress (physical coercion)
• Illegality (if license is required to raise money instead of protecting the public, the contract is enforceable if party performed the contract)
• Adjudicated incompetency (or under guardianship)
• Also, destroyed subject matter

Question 3

Under the Sales Article of the UCC - In a sale or return

Answer 3

The buyer has title and risk of loss unless and until the goods are returned to the seller.

Question 4

Contracts governed by Common Law

Answer 4

Especially construction contracts

• Follow the doctrine of substantial performance. A party who receives substantially all of the benefit of the bargain is bound to the contract and can seek only damages for any minor breaches.
• Do not allow rescission for minor breaches but limit the nonbreaching party to recovery of damages.

Question 5

Contracts governed by Contract Law

Answer 5

Contract law generally does not differentiate between intentional and nonintentional breaches.

Question 6

Under the Statute of Frauds -

Answer 6

• A promise to pay the debt or default of another (a “surety” contract) must be evidenced by a writing signed by the surety (the party to be charged).

Question 7

Agencies that are required to be in writing

Answer 7

• Agencies for the sale of land
• Agencies impossible to complete in one year