Deck 26 Flashcards Preview

Regulation > Deck 26 > Flashcards

Flashcards in Deck 26 Deck (20):
1

In contract cases, what kind of damages are generally not awarded

Punitive damages

2

Intended beneficiary

Person who were intended to be benefited by a contract other than the bargaining parties; can enforce a contract as soon as their rights vest

3

A promise to pay the debt of another must be evidenced by:

Some type of writing to be enforceable

4

Types of conduct that generally will make a contract void?

Physical harm, entering into a contract with a person who is without capacity, and fraud in the execution

5

Irrevocable offers

Option contracts and firm offers

6

Firm offer:

written offer by a merchant

7

Three ways to terminate an offer:

Rejection, revocation, automatically

8

To have an enforceable contract, there must be 3 things:

Offer and acceptance; exchange consideration, and no defenses

9

Two elements of consideration

1) Must be something of legal value; 2) Must be bargained for exchange

10

Promises to make a gift are:

Unenforceable (lack of consideration)

11

Void contract:

unenforceable by either party (criminal act)

12

Voidable contract:

It may avoided at the option of the party adversely affected

13

Fraud in the execution

Occurs when a party is deceived into signing something that he dos not know is a contract (void)

14

Undue influence

Abuse of a position of trust or confidence

15

Contract made by an incompetent person without an adjudication of incompetency is:

Voidable

16

Additional standard deduction for being over 65 and/or blind?

$1250 per person

17

Organization costs for a corporation include:

Legal fees and filing fees

18

Personal residence and personal furnishings are what kind of assets?

Capital assets

19

Adjusted basis =

Purchase price - depreciation

20

Under MACRS depreciation what amount of the gain should be recaptured as ordinary income?

Lesser of the gain realized or depreciation which was allowed