REG mod 26c Flashcards
Article 2 of the Uniform Commercial Code applies to the sale of _____.
Goods. There are no dollar thresholds; the sale can be for any amount and Article 2 of the UCC still applies. Goods are defined as tangible personal property.
Describe fraud in the inducement.
An individual understands and is aware that he / she is signing a contract. However, the individual was misled about the contract. The resulting contract is voidable.
Name the defenses that may be used to show that a valid agreement doesn’t exist even though there appears to have been a valid offer and valid acceptance.
Fraud
Mutual Mistake – both parties misunderstood the contract
Duress – “He held a gun to my head and made me agree.”
Undue influence – abuse of a fiduciary relationship
What is a holder in due course?
A holder in due course is the holder of a negotiable instrument who is entitled to receive payment of the negotiable instrument, even if the maker has personal defenses.
What is the difference between a major and minor breach of contract, as it relates to the payment for a CPA’s service?
A major breach of contract may result in the CPA not receiving compensation. If the breach is minor, the CPA will likely receive most of the compensation due.
Name the types of contracts that must be in writing per the Statute of Frauds.
Contracts that cannot be completed within one year (perhaps a partnership)
Contracts involving the purchase of real estate
Contracts for the sale of goods for an amount in greater than or equal to $500
Contracts that guarantee the debt of another
Provide an example of promissory estoppel.
This occurs when a person makes a promise, such as, I will donate $100,000 for the hospital to purchase a new machine. The hospital then purchases the new machine and asks the individual for the donation promised. The individual will be required to make t
Is the mirror image rule required for a contract under the UCC?
No. The UCC focuses on the intent of entering a contract.
An offerror may generally revoke an offer prior to acceptance by the offeree. When does revocation become effective?
An offer is effectively revoked when the offeree receives notice of the revocation.
Who is liable for an instrument with a forged signature?
The person who forged the signature.
Describe the difference between an express contract and an implied contract.
An express contract describes specific terms related to the contract. The terms of an implied contract indicate the terms based on conduct and / or circumstances.
The acceptance of an offer may be _______ or ________.
Written or Oral
Memory aid: Offeror is the originator of the offer. Offeree receives the offer.
An oral contract may be enforceable for specifically manufactured goods costing more than $500 under the UCC. True / False
True. If the goods are specifically manufactured, a contract may be enforceable.
