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Flashcards in Contracts Deck (11)
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1
Q

What automatically terminates an offer?

A

Operation of law:
Death or insanity of either party
Destruction of subject matter
Illegality of subject matter

2
Q

What are the two rules of acceptance?

A

Mirror Image Rule - must accept without alteration

Early Acceptance Rule - acceptance effective when sent, unless exceptions apply

3
Q

When are offers, revocations, and rejections effective?

A

When received by other party

4
Q

What are rules for consideration?

A

Must provide value as a result of the contract
Cannot be past consideration or a pre-existing duty
If modify contract, must provide new consideration

5
Q

What makes a contract voidable?

A

Duress
Undue influence
Misrepresentation of a material fact - fraud in inducement
Mistake - mutual or unilateral
Capacity - minor, intoxication, incompetent

6
Q

What makes a contract void?

A

Extreme duress
Fraud in execution
Illegal subject matter
Incompetent - once ruled by court

7
Q

What is the Statute of Frauds?

A
GROSS
Goods sale >$500
Real estate sales
Over one year required to perform contract
Suretyship
Statements in consideration of marriage
8
Q

What are exceptions to written requirement for sale of goods >$500?

A
SPAM
Specifically manufactured by seller
Partially performed contract
Admit in court that made contract
Merchant does not object within 10 days
9
Q

What is Parol Evidence Rule?

A

Whenever written contact exists, the following is barred from court:
Prior written or oral contracts
Concurrent oral contracts

10
Q

What is allowed under Parol Evidence Rule?

A

Subsequent oral or written modifications to contract
Fraud in execution
Oral discussions prior to contract that clarify

11
Q

When can contract rights not be assigned?

A

Contract prohibits it
Duty is personal in nature
Materially alters responsibilities of other party
Involves specialized personal services