Reg Sec 13

Question 1

Contract

Criteria of assignment

Answer 1

A contract cannot be formed without consideration, which does not include past consideration. If a party has already performed an act that would be past considered. Persons adjudicated incompetent contracts are voided.

One of the criteria of a valid assignment of sale to a third party is assignment must not materially alter or breach the contract or change responsibilities of other party.

Question 2

Termination of Contract

Mutual mistake of Fact

Answer 2

Expiration, Revocation, Rejection, conteroffer(inquiry isn’t a counteroffer), Death or insanity, Destruction of subject matter, and Illegality of subject matter.

a mutual mistake of fact might cause parties to enter into a contract that they would not otherwise enter into making the contract unenforceable

Question 3

Voided Contracts
Common Law Statute of Frauds
Sales of Real estate

Answer 3

Contracts are voided when induced to enter a contract(Undue influence). Duress through physical compulsion.

Common law statute of frauds does not apply for contract that can be performed within one year. at least a written memorandum of a contract to purchase or sell real estate would be enforceable.

Sale of real estate must be in writing and signed by enforceable party.

Question 4

Liquidated Damages Clause
Remedy of specific performance
Parol evidence rule

Answer 4

is valid as long as it is considered a reasonable estimate of the actual damages a pun breach of contract and not a punitive assessment.

is granted when an alternative would not be adequate like Patents are Unique

rule does not bar oral modifications occurring after the date of written contract.

Question 5

Minor breach of contract

Contract with minor

Answer 5

when minor breach, victim is entitled to recover monetary damages resulting from the breach.

When entering a contract with an minor the contract can only be voided by the minor.