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Flashcards in NC Contract Distinctions Deck (25):
1

In essays, how to start a contract answer

outline where the law comes from
1. common law
2. UCC

2

What are farmers?

merchants

3

Hybrid contracts (goods + services) how to analyze

Look to see if the primary purpose is sale of goods and services are incidental or vicea versa

4

When can a unilateral contract be revoked by an offeror in N.C.?

After performance has begun, offeror can still revoke the contract

-offeree maintains a cause of action for services rendered thus far (≠lost profits)

5

Additional terms in UCC battle of the forms become part of the agreement unless?

(3)

1. the contract says "no additional terms"
2. Express provision saying no additional terms can be added; or,
3. The additional terms material alter the terms of the contract

6

An arbitration clause in an employment contract added in a UCC battle of the forms?

Materially alters the term of the contract

7

Detriment is defined as?

Legal Detriment Test
1. Foregoing an action they could have done; or,
2. doing something that they have a legal right not to do

8

How are seals on a contract viewed in N.C.?

What if on UCC contract

Brings about a rebuttable presumption of consideration --> 10 years statue of limitations

(≠specific enforcement is sought)

No effect on UCC contract

9

Statute of limitation for contracts in N.C.?

3 years

10

Promissory Estoppel in N.C.

Does not permit promissory estoppel as affirmative relief = cannot use to enforce contract

Can use to get money back for unjust enrichment

11

Statute of Frauds in N.C. Covers
(4)

1. sale of good over $500
2. Leases in land over 3 years
3. transfer of real property
4. commercial loan commitments by a loan by a bank over 50k

12

Is an oral contract not performable within a year enforceable in N.C.?

Yes, it does not have to be in writing in N.C.

13

An interest in land includes

1. mining rights
2. leases past 3 years
3. easements

14

N.C. does not require writings for?
(4)

1. contracts that cannot be performed in one year
2. trusts in land
3. real estate brokerage agreements
4. marriage

15

Part performance of an oral land sale contract in N.C.?

Can never be valid, no matter if paid for or if improvements are made

Can use an unjust enrichment theory to get money back if paid

16

N.C. warranties protect who?

Seller liable to any natural person who is in the house of the buyer or is a guest of the buyer
+
Foreseeable user

-makes up for strict liablity

17

Statute of limitation in a breach of warranty action in N.C.`

3 years after the breach

18

When is the latest a breach of warranty action can be filed in N.C.?

6 years after the purchase of the good

19

Minors have the power of avoidance in N.C. when?


≠an emancipated or married minor

20

Economic duress in N.C.

Threat of breach of contract
+
Something more

Will be allowed

21

Remedies for Breach in N.C.

1. Expectation Damages
2. Restitution Damages
3. Reliance Damages

22

Damages for mental anguish can be recovered when?

For breach of contract when benefits were related to

dignity, solitude, sensibilities, mental concern

23

Non-compete clauses enforceability
1. part of contract?
2. added later

1. no new consideration
2. new consideration needed

24

How will a N.C. court interpret a contract with too broad a non-compete clause?

Blue Pencil Rule
-remove offending portion of the contract and enforce the rest

25

What age must someone be in order to enter into a contract to borrow money for post-secondary education?

17 years old