Virginia contracts distinctions Flashcards

1
Q

Virginia approach to past consideration

A

Virginia rejects the modern trend, which holds that a promise to pay for previously performed acts will be enforceable if the promisee performed at the request of the promisor

== no past consideration

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2
Q

unconsionability

A

Unconscionability applies only to the formation of contracts

obligation of good faith applies only to the performance or enforcement of contracts.

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3
Q

Extra statute of frauds category in VA besides the MY LEGS categories

A

A contract to devise real property by will, or to leave all of one’s property by will, to another in exchange for services is within the Statute of Frauds.

For an oral agreement to make such a devise to be enforceable despite the Statute of Frauds, the following requirements must be met:
(1) the agreement must be certain and definite in its terms;
(2) the acts done in part performance must have been done pursuant to the agreement;
AND
(3) the contract must have been so far executed that a refusal to enforce it would operate a fraud upon the party rendering services.

If it is found to be unenforceable, the party rendering services may seek a resti- tutionary remedy.

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4
Q

does writing have to conclusively establish the existence of a K?

A

To satisfy the Statute of Frauds in Virginia, the writing need NOT conclusively establish the existence of a contract as long as it provides a basis for believing that the offered evidence rests on a real transaction.

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5
Q

virginia express warranty

A

The Fourth Circuit has held that the statement “this is a good quali- ty ladder” does not create an express warranty.

also, Virginia law recognizes that negations or limitations stated about the performance of goods being sold can undercut any express statements about quality or performance.

typically express warranties require an affirmation of fact or promise or description of the godos that creates an express warranty.

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6
Q

how to establish breach of implied warranty

A

To establish a breach of the implied warranty, the buyer must show: (1) the existence of a warranty, (2) that the warranty was bro- ken, and (3) that the breach was a proximate cause of the loss.

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7
Q

privity and breach of warranty

A

Virginia has completely abolished privity of contract as a defense to an action for personal injury based on breach of warranty. In place of the UCC alternatives regarding privity, the Virginia legis- lature has enacted a statute that provides that lack of privity shall be no defense in any action for breach of warranty against the manufacturer or seller of goods even though the plaintiff did not buy the goods from the defendant, as long as it was reasonable to expect that the plaintiff would use, consume, or be affected by the goods.

While this section eliminates the privity requirement in an action for damages for physical injury, it does not eliminate the privity requirement in actions for purely economic loss.

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8
Q

article 2 warranty provisions apply to

A

The warranty provisions apply to leases of goods, as well as sales of goods.

leases of goods governed by UCC art. 2A – has same warranties

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9
Q

does implied warranty of merchantability apply in used products?

A

yes

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10
Q

va alternate names for common carrier and non carrier contracts

A

non carrier = direct delivery contract ; carrier cases = transportation contracts

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11
Q

how is buyer supposed to respond when seller fails perfect tender ?

A

The buyer is not required to notify the seller initially of all their objections, but is required to notify the seller that the transaction was troublesome.

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12
Q

virginia restitution

A

In Virginia, if a person renders services to a decedent in consider- ation of his promise to leave her an interest in his land by will and that promise is broken, the promisee is entitled to recover on an implied contract the reasonable value of her services.

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13
Q

cutting off rights in third party situations

A

In Virginia, every sale of goods where possession is allowed to remain with the seller is void as against lien creditors and bona fide purchasers without notice until the contract or bill of sale is admitted to record.

But where no real fraud is intended, a subsequent delivery of the goods to the buyer validates the sale as to subsequent creditors and purchasers.

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14
Q

Implied warranty of merchantability - more info and requirements [VA essay 14]

A

some of the requirements for merchantability include that the goods:

pass without objection in the trade under the contract description
are fit for the ordinary purpose for which such goods are used [frequently used]
conform to any promises or affirmations of fact made on the label

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15
Q

how does VA deal with “different terms” under battle of the forms?

A

VA follows the knock out rule:

conflicting terms in the offer and acceptance are knocked out of the K, because each party is assumed to object to the inclusion of such terms in the K. Under the knockout rule, gaps left by the knocked out terms are filled by the acc gap-filler terms.

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16
Q

breach under Virginia UCC

A

besides the regular breach remedy

incidental and consequential damages

consequential damages may not be an unconscionable amount

personal injury and commercial loss is also recovery that is permitted

17
Q

disclaimer of implied warranty of fitness for a particular purpose

A

must be in a conspicuous writing

inspection might constitute disclaimer

18
Q

defenses to breach of warranty

A

Inspection by buyer

assumption of risk

NOT DEFENSES: unawareness of defect in the product, inability to discover defect due to its latent or undiscoverable nature

[implied warranties are not based on negligence, they are based on a form of absolute liability that is imposed on certain sellers]

19
Q

when goods are shipped by carrier, what is implied

A

(1) payment is due upon tender of delivery / where buyer receives the goods

(2) when payment is made by check, payment is not final until the check is honored

(3) buyer has a right to inspect the goods before she pays unless the K provides for payment COD or otherwise indicates buyer has promised to pay without inspecting the goods

20
Q

what is seller’s right if buyer is insolvent

A

a buyer’s right to retain or dispose of goods is conditional upon making payment to the seller. If a seller discovered that a buyer is insolvent, and has received the seller’s goods on credit, the seller may reclaim the goods upon demand made within 10 days after receipt.

BUT, if buyer is insolvent, and there is a creditor, the seller’s right to reclaim goods is subject to the rights of a buyer in ordinary course, other good faith purchaser, or lien creditor.