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27 Cards in this Set
- Front
- Back
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Can an oral contract for the sale of goods $500 or more be enforceable?
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Yes, to the extent of goods received and accepted by the buyer. Also, when the contract is for the sale of specially manufactured goods when the the seller has begun to substantially perform
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Is a contract to build a building that will take less than a year to build within the statute of frauds?
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No
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What must an obligor do once they have knowledge of an assignment?
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Bound to render performance to the assignee. Rendering performance to the assignor is a breach of they duty to the assignee.
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Can an assignment substantially change the duties of the obligor?
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No
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Can accord and satisfaction be accomplished by cashing a check?
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Yes, when there is a bona fide dispute about ammount owed, accord and satisfaction can be accomplished by tendering and accepting a check marked "payment in full"
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What must be done to reject goods?
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Notify the seller within a reasonable time of delivery. If the rejection is because of defect they have to give notice of the defect to give a chance to cure
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How can a contract for the sale of land meet the statute of frauds?
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1.memo containing the contract's essential terms
2. signed by the party to be charged |
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What happens when impossibility discharges obligation to perform?
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Party gets paid the fair value of the work they did. Other party doesn't have to pay full amount
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When do the rights of a third party beneficiary vest?
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1. manfiestation of assent to promise in manner INVITED OR REQUESTED BY THE PARTIES
2.Brings suit to enforce the promise 3.Materially changes position in justifiable reliance on the promise |
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What is option language for the Firm offer rule?
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Just needs to be words of firmness.
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What is an exception to the infancy rule?
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Minors will be held liable for contracts they make for necessities
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When will a court uphold a liquidated damages clause?
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a. if damages were difficult to estimate at the time the the contract was formed AND
b.the amount agreed upon is a a reasonable forecast of the damages that would result from breach. |
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Specific performance
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Specific performance is available for contracts for the sale of goods where money damages would be inadequate to secure substitute goods.
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Accord and satisfaction
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Consideration is sufficient if it is of a different type than called for in the contract.
If a creditor breaches an accord agreement, the debtor has to option of raiseing the accord agreement as an equitable defense in the creditor's action and ask dismissal or waiting until he is damaged. |
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Acceptance conditional on assent to additional terms
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Under the UCC an acceptance is valid even if it contains original terms, unless acceptance is made conditional to acceptance of the additional terms.
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Requirements contact consideration
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"as many as chooses/desires" = no consideration
"as many as it requires" = consideration. |
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Parole evidence: fraud
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Intentional misrepresentation of a material fact of the contract
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Assignments and delegations prohibited
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Prohibited where the obligor's risks would be substantially altered.
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Construction contracts
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If owner breaches after pefromance has begin the builder is entitles to profit from the contract and costs to date (expectation AND reliance damages).
Duty to mitigate only dictates that they stop working and not incur further expenses. |
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Cover
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Need not find the lowest price but needs to get reasonable contract for substitute goods ( if knew about cheaper price and other factors (delivery) would the same they have to use that price for getting damages).
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Third-party donee beneficiary
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No cause of action against the promisee, because the promoisee's act gratuitous and he may not be held to it, unless promisee tells the beneficiary of the contract and should foresee reliance by the beneficiary, and the beneficiary reasonably relies to his detriment.
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Oral condition precedent
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parol evidence does not apply to an oral condition precedent.
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Excuse of a condition
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The party having the benefit of the condition indicates by words or conduct she will not insist upon it. If there is detrimental reliance upon this waiver it is a binding estoppel waiver.
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Mutual mistake
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Mutual mistake of an existing material fact to a contract is a defense that allows the adversely affected party to rescind so long as that party did not assume the risk of mistake.
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Delegation
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When a party to a contract delegates his duties to another, the original party (the delegator) remains liable on his contract. Contract must be executory for a novation to occur.
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Modifying agreement
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A modifying agreement must be mutually assented to and supported by consideration. In most cases, consideration is found to be present in that each party has limited her right to enforce the original contract as is.
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When condition is broken
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When a condition is broke, the beneficiary of the condition can either terminate their liability or continue under the contract. If they continue under the contract their are deemed to have waived the condition.
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