Contracts Flashcards
When and how can revocation of an offer take place?
A revocation may be made in any reasonable manner and by any reasonable means. It is not effective until communicated.
What are the two standards for incapacity (mental illness)
- Person cannot understand nature/consequences of actions
- Person cannot act in a reasonable manner related to transaction (other party has reason to know this)
When is a party responsible for disclosing material facts related to the deal
Normally a party does not need to tell the other side about all material facts related to the deal EXCEPT:
1) active concealment
2) special fiduciary relationship
Does substantial performance apply to express conditions (CL)?
No, for express conditions in a CL contract, it must be full performance because substantial performance is not enough.
How are situations handled when a rejection is sent by mail and then later an acceptance is sent by mail?
The mailbox rule does not apply.
The first one to be received by the offeror prevails.
What is a firm offer under the UCC?
Irrevocable offer for stated time period (3 months or less) provided
1) the offeror is a merchant
2) the offer is signed by the merchant
3) made in good faith
Warranty of merchantability – what is it?
A warranty of merchantability is implied in every contract for the sale of a good by a seller who is a merchant with respect to goods of that kind.
Is course of dealing evidence admissible under the UCC?
Course of dealing is admissible to explain or supplement a final written agreement, even if the agreement was intended to be exclusive. In other words, it can be used for parol evidence.
Under the UCC, what are concurrent conditions of exchange between buyer and seller?
Seller’s tender of delivery of goods and a buyer’s tender of payment are concurrent conditions of exchange.
When can a buyer privy to an installment contract reject nonconforming goods?
A buyer can reject an installment if a nonconformity substantially impairs the installment and the nonconformity cannot be cured.
Name the three conditions required for promissory estoppel
- Promisor should reasonably expect the promise to induce action/forbearance on part of the promisee or third person
- Promise does induce such action or forebearance
- Injustice can be avoided by enforcement of the promise
Who and when can a contract with a minor be disaffirmed?
A minor may either disaffirm (void) OR chose to hold the adult party to the contract. Disaffirming must take place before the infant reaches age of majority or within a reasonable time thereafter.
Does the statute of frauds apply to suretyship agreements
Surety agreements: his/her own economic advantage. SOF doesn’t apply and oral promise for the suretyship is enforceable.
Is full performance sufficient to take a contract out of SOF?
Yes, full performance by either party to the contract will generally take a contract out of SOF requirements.
What acts (2/3) will take a contract for transfer of land contracts out of SOF requirements, deeming partial performance sufficient?
2/3 required for partial performance, out of SOF:
1. payment of all or part of purchase price
2. possession by purchaser
3. substantial improvements of the property