Contracts 2

Question 1

statute of limitations

Answer 1

legal action must be commenced within a certain period of time

four to six years is typical

measured from the time the cause of action accrued (date of breach)

Question 2

statue of frauds: 6 contracts requireing a writing (signed by defendent)

Answer 2

1. consideration is marriage
2. terms cannot be performed within a year
3. interest in land (n leases more than 1 year)
4. by executors (pay estate debts out of personal funds)
5. sale of goods 500 or more
6. surety (pay debt of another)

MYLEGS- marriage, year, land, executors, goods, suretyship)

Question 3

Accord and satisfaction

Answer 3

accord is an agreement to substitute one contract for another, and satisfaction is execution of the accord. Accord n sat discharfe the original duty

Question 4

diff between accord n s and substituted contract

Answer 4

for sub contract, duties under the original contract are discharged immediately

Question 5

novation

Answer 5

available as a defense to a party who has been released from a contract. it occurs when a new contract substitutes a new party for an old party in an existing contract

Question 6

compensatory damages for personal service contracts

Answer 6

awards the non-breaching party enough money to substitute performace (diff between the cost of substitute n contract price)

Question 7

consequential damages if forseeable

Answer 7

a party may also collect all damages that r reasonable forseeable as result of the breach (extra weathering to ccar resulting from no garage the guy was supposed to build)

Question 8

liquidating damages

Answer 8

clause in contract specifices amount if ther is a breach. (cant be for a penalty)

Question 9

punative damages

Answer 9

not availble for breach of contract (or ordinary negligence). only available for fraud= tort cause of action