Search Diagnostic Assessment II.1 Flashcards
Which of the following is a true statement about the UCC?
a) It applies in all situations in which goods are part of the contract.
b) It allows for more flexibility than common law.
c) The UCC applies only to sales of goods by merchants.
d) All of the above.
It allows for more flexibility than common law.
a) It applies in all situations in which goods are part of the contract.
b) It allows for more flexibility than common law. The UCC was written to help sales transaction be conducted more simply and uniformly.
c) The UCC applies only to sales of goods by merchants.
d) All of the above.
Sean Reckers has had a guardian appointed for him by a court. After the appointment, Sean entered into a contract with Reince Larabee for the purchase of Larabee’s 400-acre ranch. The contract between Reckers and Larabee is
Void.
When one party has been declared incompetent by a court, neither side can enforce the contract and the courts do not honor it.
Janet Worth has a lease for two years at the Wythe Courtyard apartment complex. Janet has the opportunity to study at Oxford for one year and has agreed to sublease her apartment to Lucy Lantern. Lucy is to take over the lease on August 1, 2016, and finish the term of the lease, which ends May 31, 2017. Janet and Lucy execute an agreement for the lease takeover. In January 2017, Lucy misses her rent payment and then moves out of the apartment. The Wythe Courtyard owner wants to recover from Janet. This contract:
Is partially executed.
The two parties negotiated an agreement of possession of the apartment and payment of rent. It is not a uniateral contract as there was no action proposed in exchange for payment.
Opal offered, in writing, to sell Larkin a parcel of land for $300,000. If Opal dies, the offer will
Automatically terminate prior to Larkin’s acceptance.
If there had been a valid acceptance first, a contract would have been formed. If there is a CONTRACT, then death does not always terminate contract obligations.
Two individuals signed a contract that was intended to be their entire agreement.
The parol evidence rule will prevent the admission of evidence offered to
Prove the existence of a contemporaneous oral agreement modifying the contract.
The parol evidence rule prohibits the introduction of evidence that additional terms were agreed upon before the contract was signed. In effect, it dictates that a written contract will have the final say on what agreements are present. A contemporaneous oral agreement is one that allegedly existed before or at the time the written contract was signed, and evidence pertaining to one cannot be introduced.
A claim will not be discharged in a bankruptcy proceeding if it
Claims based on fraud or other intentional wrongdoing by the debtor will not be discharged. If a debtor commits fraud, that debtor cannot take advantage of the bankruptcy laws when it comes time to pay the defrauded party.
Chapter 7 of the Federal Bankruptcy Code will deny a debtor a discharge when the debtor
Corporations and partnerships may go through a
Is a corporation or a partnership.
Chapter 7 liquidation, but do not qualify for a general discharge from all remaining debts as natural persons do.
Bond purchased a painting from Wool, who is not in the business of selling art. Wool tendered delivery of the painting after receiving payment in full from Bond. Bond informed Wool that Bond would be unable to take possession of the painting until later that day. Thieves stole the painting before Bond returned.
The risk of loss
Passed to Bond at Wool’s tender of delivery.
In absence of agreement, where the buyer takes possession of the goods without a contractual obligation to ship or deliver by the seller, and the goods are not represented by a document of title, if the seller is a nonmerchant, risk of loss passes from seller to buyer at the time the seller tenders delivery. Bond suffers the loss.
West, Inc., and Barton entered into a contract. After receiving valuable consideration from Egan, West assigned its rights under the Barton contract to Egan. In which of the following circumstances would West not be liable to Egan?
Egan released Barton.
Egan has all the rights of West based on the assignment. Thus, Egan can release Barton, discharging the Barton contract, and West has no further liability to Egan. An assignment does not waive or eliminate the contract rights of the original party to the contract. Unless released, the assignor remains liable to the other contracting party. If the assignee fails to perform the obligations under the contract, the assignor is still responsible.
