Exam 3 Part-1

Question 1

T or F? Stock Brokers are experts

Answer 1

False they are not. If a broker give you an opinion about a stock, their opinions cannot be basis for fraud.

Question 2

Name the 5 types of Contracts that Statute of Frauds Require a writing for:

Answer 2

REQUIRE WRITING

1-Sale of Goods for $500+
2-Interest in Land
3-Performance takes longer than 1 year
4-Collateral Promises
5-Consideration for Marriage (prenuptial agreement)

Question 3

The Statute of Frauds generally requires a(n) _______ for a contract to be enforceable.

Answer 3

Writing

Question 4

Name 3 exceptions to the writing rule under the Statute of Frauds (don’t require a writing/signature)

Answer 4

1- Party FAXes terms of the agreement
2- One party Partially Performs
3- Terms written on letter-head

Question 5

To make an oral adjustment to a written contract you must comply with ___ _______ __ ______

Answer 5

The Statute of Frauds

Question 6

Define Parol Evidence Rule:

Answer 6

Prior and contemporaneous evidence cannot be brought up in court regarding a written contract

Question 7

Define Prior/Contemporaneous evidence:

Answer 7

Evidence of other deals or agreements at the time of the contract or prior

Question 8

What are the exceptions to the Parol evidence Rule?

Answer 8

1- Oral conditions precedent

2- Promissory Estoppel

Question 9

Give an example of Oral-Conditions precedent:

Answer 9

Have an agreement to sell textbook, but if i teach the class again I will need my textbook. (I only have to perform if certain conditions are met)

Question 10

Define Delegator:

Answer 10

(Cameron) The party who delegates the duties/performance of a contract to another party (the Delegatee- Logan)

Question 11

Define Delegatee:

Answer 11

(Logan) The party who receives the responsibility of duties from another party (delegator- Cameron)

Question 12

Define Obligor:

Answer 12

(Cameron) The party who owes performance- (to obligee)

Question 13

Define Obligee:

Answer 13

(Sister Conlee) The party to whom performance is owed. (by obligor)

Question 14

Promissory Estoppel an exception to the _____ ________ ____ and the _______ __ ______.

Answer 14

Parol Evidence Rule, Statute of Frauds

Question 15

The Obligor and Obligee are the ___ _______ _______ in an agreement.

Answer 15

Two original Partes

Question 16

Delegation

Answer 16

The transfer of duties under the contract to a third Party (Logan)

Question 17

Define Assignee

Answer 17

(Brother Conlee) Party who RECEIVES the rights of a contract from another party (the assignor- Sister Conlee)

Question 18

Define Assignor:

Answer 18

(Sister Conlee) Party who ASSIGNS their rights in a contract to another party (the assignee-Brother Conlee)

Question 19

What duties canNOT be delegated?

Answer 19

1-Personal Services (Bruno mars singing)

Question 20

What duties can be delegated?

Answer 20

Any normal duties

Question 21

T or F: The Delegator (Cameron) is STILL responsible to the Obligee (Sister Conlee) under the contract even the duties have been delegated to the delegatee (Logan)

Answer 21

True-both still responsible

Question 22

Assignment of all Rights means:

Answer 22

Assignment of ALL RIGHTS and delegation of all DUTIES

Question 23

Contracts with the intent to benefit an outsider are:

Answer 23

Third party beneficiary contracts

Question 24

The phrase “Intent to benefit” is always in reference to whom?

Answer 24

Third Party

Question 25

In a third party beneficiary contract which parties can sue to enforce the contract?

Answer 25

The Original Parties AND the 3rd party beneficiary

Question 26

A __________ beneficiary CANNOT sue to enforce the contract

Answer 26

Incidental

Question 27

The Obligor is the ________ and the Obligee is the _______.

Answer 27

Promisor, Promisee

Question 28

The Third Party is established at the time the contract was created is a _____ _____ ___________. When the third party is established AFTER the contract was created it is a(n) ________

Answer 28

Third Party Beneficiary, Assignee

Question 29

If an ITPB contract says the parties retain right to modify the contract can the TPB sue to enforce?

Answer 29

No- TPB cannot

Question 30

In a ITPB contract you can modify until it _____ the third party's rights

Answer 30

vests

Question 31

When do the rights of third parties vest?

Answer 31

1. The third party materially changes his position in justifiable reliance on the promise. 2. The third party brings a lawsuit on the promise. 3. The third party demonstrates her or his consent to the promise at the request of the promisor or promisee (These happen cannot change contract anymore)

Question 32

Both ________ Beneficiary and _____ Beneficiaries are INTENDED third party Beneficiaries.

Answer 32

Creditor, Donee

Question 33

A life insurance contract is an example of what?

Answer 33

Intended third party beneficiary contract (donee)

Question 34

Define Bilateral Mistake:

Answer 34

Both parties make the same mistake about information in a contract. Same as Mutual Mistake

Question 35

Does a Bilateral Mistake make a contract Voidable or Unenforceable?

Answer 35

Voidable

Question 36

Mistakes must be regarding ________ _____

Answer 36

Material Fact (not trivial)

Question 37

Contracts with unilateral mistakes are generally

Answer 37

Enforceable

Question 38

The only times when a contract can be voidable due to unilateral mistakes are when:

Answer 38

Other party knew of the mistake | Substantial Mathematical error

Question 39

T or F: A mistake of value will let you out the contract

Answer 39

False

Question 40

T or F: An Opinion is not a basis for fraud

Answer 40

True it is NOT

Question 41

T or F: True statements are Not a basis for fraud

Answer 41

True they are not