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Question 1

Why does a modification not fall within parol evidence rule?

Answer 1

Because it happens after, not before or contemporaneous with the contract being made

Question 2

What is the basic idea of a merger clause?

Answer 2

That all prior communications are merged into the written agreement (makes a writing a total integration)

Question 3

What are the two exceptions to merger causes?

Answer 3

• instrument is obviously incomplete

- merger clause was included because of fraud, mistake, illegality, or any reason to set aside a contract

Question 4

What is the plain meaning rule?

Answer 4

When a writing or a term is unambiguous on its face, it is interpreted according to its plain meaning, and you can’t use extrinsic evidence to interpret it

Question 5

Is the plain meaning rule accepted by the UCC?

Answer 5

No, because many words are ambiguous and can’t be figured out just by looking at the writing

Question 6

If parties have agreed to a condition occurring before a contract is effective, and that doesn’t happen, can the failure of the condition be shown even if there was no record?

Answer 6

Yes, because of the absence of finality. Agreements don’t take affect until the condition occurs, so there is no contract until that happens

Question 7

Can life and preservation of the body have material measurable value to be consideration?

Answer 7

Yes

Question 8

Can a moral obligation be sufficient consideration to support a later promise to pay if the Promisor got a material benefit?

Answer 8

Yes

Question 9

What are consideration substitutes?

Answer 9

• CL: promissory estoppel

- UCC: merchant’s firm offer rule, and modification to a contract

Question 10

What is an infant?

Answer 10

Anyone under 18, and that counts at the very first moment of the day before his 18th birthday

Question 11

Once an infant avoids a contract, what happens to the transaction?

Answer 11

It is treated as a void from the beginning

Question 12

What are the two views about infants disaffirming conveyances and reclaiming real property from a later BFP?

Answer 12

• CL: can reclaim RP

- UCC: the disaffirmance has no effect on later BFP

Question 13

What are transactions an infant cannot avoid?

Answer 13

• contracts to support a child out of wedlock
• necessities of life provided to his kids
• necessities for himself (liable for reasonable value)
• bail bonds
• his tort
• received benefits under a contract
• insurance/banking/education loans

Question 14

What are the things that are considered necessities?

Answer 14

Food, shelter, clothing, medical services, legal services, education

Question 15

Infants are liable for their torts, but what is a tricky situation?

Answer 15

If the tort is really a breach of contract, the infant cannot be sued for it

Question 16

If an infant willfully misrepresents his age, can he still use his powers of avoidance to avoid the contract?

Answer 16

Yes, but the defrauded party can avoid the contract on grounds of fraud

Question 17

Are principal minors liable for torts committed by their agents within the scope of their employment?

Answer 17

Yes, but split about this

Question 18

What is the uniform transfer to minors act?

Answer 18

Allows a custodian to sell the infant’s property and reinvest the proceeds

Question 19

What is disaffirmance?

Answer 19

The power for an infant to avoid a contract, that can happen anytime before ratification, and is irrevocable

Question 20

When can an infant disaffirm a contract?

Answer 20

• majority: only after he has reached 18

- minority: can be before

Question 21

If an infant tries to disaffirm a contract, can he just enforce some parts and dissafirm others?

Answer 21

No, the whole contract is avoided

Question 22

What is a ratification?

Answer 22

A promise to perform a voidable obligation (can’t happen until person has reached majority and infant must know the legal consequences).

• majority: everyone presumed to know the law
• minority: no ratification without full knowledge of legal consequences

Question 23

If you were almost 18 and enter a contract, then turn 18 and promise to perform, is that contract enforceable?

Answer 23

Yes even if there is no new consideration