Reg Flashcards - Chapter 6

Question 1

Novation

Answer 1

Agreement is unchanged, but one of the partners to the contract is released and another is put in his place

Question 2

Substituted contract

Answer 2

Both parties are released to original contract but both are bound by a new agreement

Question 3

Unilateral contract

Answer 3

One promise

The contract is not formed until performance is completed

Question 4

Bilateral contract

Answer 4

Two promises

Formed as soon as the promises are exchanged

Question 5

Executory contract

Answer 5

Duties remain to be performed under the contract

Question 6

Three requirements for legally enforceable contract

Answer 6

1. Offer and acceptance
2. Exchange of consideration
3. Lack of defenses

Question 7

Statute of Frauds

Answer 7

Contracts that require a writing:
MY LEGS
1. Consideration is Marriage
2. Cannot be performed within a Year
3. Interests in Land
4. Executors to pay estate debts out of personal funds
5. Sale of Goods of $500+
6. Act as Surety

Question 8

Accord and satisfaction

Answer 8

Agreement and satisfy the substitution.

Discharge the original duty

Question 9

Parol Evidence Rule

Answer 9

Oral or written statements made prior to the written contract or oral statements made contemporaneously with written contract that seek to vary the terms of the contract are valid arguments for a changed contract

Question 10

Anticipatory repudiation

Answer 10

One person unequivocally indicates in advance of performance to another that she will not perform contractual duties

Question 11

Merchant’s firm offer

Answer 11

1. Seller must be a merchant
2. Offer must be in writing
3. Offer must give assurances it will be kept open for a certain time (if no time given, no longer than 3 months)

Question 12

Auction “with reserve”

Answer 12

Seller does not have to sell unless an adequate bid is made

Question 13

Auction “without reserve”

Answer 13

Goods must be sold to the highest bidder

Question 14

Exceptions to Statute of Frauds under the UCC

Answer 14

SWAP

1. Contracts for specifically manufactured goods
2. Merchant’s confirmatory memor rule (Merchant sends another merchant a Written confirmation of a contract that is sufficient to bind the seller)
3. Contracts the parties have Admitted in court
4. Contracts that have been Performed

Question 15

FAS

Answer 15

Free Along Side

Requires seller to deliver the goods alongside of a specified vessel

Question 16

CIF

Answer 16

Cost, Insurance, Freight
Contract price includes the cost, insurance, and freight
Risk of loss is on buyer during shipment

Question 17

Disclaiming the implied warranty of title

Answer 17

Cannot be disclaimed by a general disclaimer such as “as is” or “with all faults”.
Can only be disclaimed specifically “I do not warrant title”

Question 18

Plaintiff must prove when injured by goods for negligence

Answer 18

1. Seller owed them a duty of care
2. Seller breached the duty
3. Damages
4. Causation

Question 19

Plaintiff must prove when injured by goods for strict liability

Answer 19

1. Product was defective
2. Defect caused the plaintiff injury
3. Defect made product unreasonably dangerous
4. Seller was in business of selling this type of good
5. Product reached user without substantial change in condition

Question 20

Cover

Answer 20

Comparable goods buyer purchases when the good are undelivered or buyer rightfully rejects

Question 21

Replevin

Answer 21

Right to recover goods wrongfully in the hands of the seller

Can be used if goods are identified and the buyer cannot reasonably cover