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Flashcards in Exam 2 Deck (91)
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1

state statute that stipulates what types of contracts must be in writing

Statute of Frauds

2

What are the contracts that must be written in writing

-any interest in the sale or lease of land
-Guarantees
-Prenuptial Agreements
-Sale of Goods over $500

3

What is the exception to having a contract in writing which pertains to a Guarantee

if the main purpose of the contract is to secure personal benefit to the Guarantor

4

Exceptions to having to have the contract in writing

partial performance, Admit in court proceeding there is an agreement, and Promissory esptopel - someone relied on that agreement

5

what is the Parol evidence rule

final document = agreement

6

the transfer of contractual rights to a third party is known as an

assignment

7

Exceptions to assignment

Workman's compensation
Contract is personal in nature - specialized service
delegate duties - the assignment significantly increases or alters the risks of the obligator

8

when the original parties to the contract agree that the contract performance should be rendered or directly benefit a third person the third person is a

third party beneficiary

9

What is the most common why to discharge yourself from a contract

complete the work

10

something must happen before performance can occure commonly used in real estate like the buyer must obtain financing before getting the loan

condition precedent

11

something must happen in order to continue the agreement an example of this would be passing the bar in order to continue working at a law firm

condition subsequent

12

both parties perform at the same time an example would be an agreement to sell a care the money and car exchange would be this

condition concurrent

13

Exception would be if the person performed everything almost exactly nessessary these things must be done in good faith, not vary greatly from what was promised and changes can be remedied with compensation, and the performance is basically what was said in the contract

substantial performance

14

non performance of a contractual duty, can sue for damages, example would be Garth brooks donating money for a hospital wing and that wing never being built

Material Breach

15

notification of duty to perform that contract won't be fulfilled and can sue or see if they perform for breach of contract an example would be the prom dress store

anticipatory repudiation

16

both parties agree that they shouldn't complete the contract ****GET IN WRITING

Discharge by Mutual Rescission

17

1 party can't fulfill their obligation and they get another party to fill their spot

Novation

18

what are the rules to Novation

1 valid obligation
2 agreement by all parties
3. extinguishing of old obligation
4. new contract is put into place

19

law says there is a discharge
due to Material Obligations
Statute of limitations
Bankruptcy
Impossibility of performance

Operation of Law

20

what are the 3 parts of Impossibility of performance

person dies
subject matter destroyed
change in law

21

contract becomes very difficult to complete and it wasn't reasonably anticipate

Commercial impracticability

22

actual damages form the breach (to make person whole)

compensatory damages

23

foreseeable damages due to resale of goods or loss of profits example would be the prom dress store

Consequencial damages

24

NOT ALLOWED FOR BREACH OF CONTRACT meant to punish the individual

Punitive damages

25

breach of contract exists but there are no damages just says that you win

nominal damages

26

if you don't breach the contract they breaching party owes you the $ due
**These MUST be reasonable or you will get nothing!!!!!

Liquidated damages

27

there was no contract but court says there was because one party was unjustly enriched

Quasi Contract

28

in the UCC you must deal in

GOOD FAITH

29

what is the primary fact or the contract and you go with that ex. sale of goods/services

predominate factor test

30

These people are held to a higher standard than others because they have unique knowledge of the product/service

merchants