Flashcards in NC Contract Distinctions Deck (25):
In essays, how to start a contract answer
outline where the law comes from
1. common law
What are farmers?
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
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)
Additional terms in UCC battle of the forms become part of the agreement unless?
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
An arbitration clause in an employment contract added in a UCC battle of the forms?
Materially alters the term of the contract
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
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
Statute of limitation for contracts in N.C.?
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
Statute of Frauds in N.C. Covers
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
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.
An interest in land includes
1. mining rights
2. leases past 3 years
N.C. does not require writings for?
1. contracts that cannot be performed in one year
2. trusts in land
3. real estate brokerage agreements
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
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
-makes up for strict liablity
Statute of limitation in a breach of warranty action in N.C.`
3 years after the breach
When is the latest a breach of warranty action can be filed in N.C.?
6 years after the purchase of the good
Minors have the power of avoidance in N.C. when?
≠an emancipated or married minor
Economic duress in N.C.
Threat of breach of contract
Will be allowed
Remedies for Breach in N.C.
1. Expectation Damages
2. Restitution Damages
3. Reliance Damages
Damages for mental anguish can be recovered when?
For breach of contract when benefits were related to
dignity, solitude, sensibilities, mental concern
Non-compete clauses enforceability
1. part of contract?
2. added later
1. no new consideration
2. new consideration needed
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