REG Chapter 6 Flashcards
Sources of contract law - Common law and statutory law
Common law: generally derived from courts, and related to contracts involving RISE (real estate, insurance, services, and employment)
Statutory law: Uniform Commercial Code (UCC) governs contracts for the sale of goods (movable things)
List 3 elements of a legally enforceable contract
1) Offer and acceptance: offer must be reasonable and made to someone specific, advertisement is not an offer unless it is made to someone specific like the first 5 customer who call such number. Identity, price, time, quantity, and nature of work must be definite
2) Exchange consideration (something of value)
3) Lack of defenses
Contracts that require writing and to be signed by the defendant in order to be enforceable
MY LEGS
M - marriage is consideration
Y - multiple year contracts
L - land
E - contracts by executors to pay estate debts out of personal funds
G - goods over $500 except if Specially manufactured goods, Written confirmation sent by one merchant to another merchant, Admitted in court contracts, contracts already Performed (SWAP)
S - contracts to act as surety (to pay debt of another)
Accord and Satisfactions Substituted Contract vs Novation
Accord and satisfaction substituted contract: same parties, new agreement
Novation: same agreement, substituted party
Mailbox rule for Acceptances
Acceptances are generally effective when dispatched as long as they were properly dispatched
However, offers, rejections, revocations, and counteroffers are effective on date received
Creation of a contract - Requirements of a merchant’s firm offer and how the offer affects consideration
Consideration is needed to make an offer irrevocable except if it is a merchant’s firm offer. A firm offer must:
1) Seller must be a merchant
2) Offer must be in writing and signed by merchant
3) Offer must give assurances that it will be kept open for a certain time
If meeting those 3, offer is irrevocable for the time stated, if no statement then for a reasonable time no longer than 3 months
All sales are final unless otherwise agreed. The UCC provides for two types of nonfinal sales:
Sale on Approval
or
Sale or Return. Explain.
Sale on approval: title and risk of loss remain with the seller until the buyer gives his approval
Sale or return: risk of loss goes to the buyer and remains with buyer until goods are completely returned to seller
UCC - Seller must make a perfect render and in order to do so goods must conform to all warranties. Name and explain all 4.
1) Express warranty: oral or written that conform to sample/model, description
2) Implied warranty of title: seller has the title
3) Implied warranty of merchantability: fit for ordinary purpose, can be disclaimed “as is”, can only be made by merchant
4) Implied warranty of fitness for a particular purpose: can be made by any seller (not only merchant) and can be disclaimed “as is”
UCC - Auction without reserve VS with reserve
Without reserve means goods must be sold to higher bidder.
With reserve means the seller may opt to exit if he did not receive a good offer
Tort liability (sellers and their products)
Negligence vs Strict Product Liability
Negligence - Failure to use reasonable care
- seller owed a duty of care
- seller did not have due care
- plaintiff suffered damages
- damages were caused by seller’s negligence
Strict Product Liability - Focus is in product
- product was defective
- defect caused plaintiff injury
- defect made product unreasonable dangerous
- seller was in the business of selling this type of good
- product reached user without substantial change in condition
Copyright vs Patent
Copyright is author’s life + 70 years
EX: literary works, musical works, pictures, films, sculptures, computer programs, architectural work, foreign language reproduction of work - usually tangible
CRIMINAL
Patent is GR 20 years
EX: machines, chemical compounds, plants produced by asexual reproduction, genetically modified bacteria, computer programs
NO CRIMINAL
