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Flashcards in Page 26 Deck (23):
1

Why does a modification not fall within parol evidence rule?

Because it happens after, not before or contemporaneous with the contract being made

2

What is the basic idea of a merger clause?

That all prior communications are merged into the written agreement (makes a writing a total integration)

3

What are the two exceptions to merger causes?

- instrument is obviously incomplete
- merger clause was included because of fraud, mistake, illegality, or any reason to set aside a contract

4

What is the plain meaning rule?

When a writing or a term is unambiguous its face, it is interpreted according to its plain meaning, and you can't use extrinsic evidence to interpret it

5

Is The plain meaning rule accepted by the UCC?

No, because many words are ambiguous and can't be figured out just by looking at the writing

6

If parties have agreed to a condition occurring before A contract is effective, and that doesn't happen, can the failure of the condition be shown even if there was no record?

Yes, because of the absence of Finality. Agreements don't take affect until the condition occurs, so there is no contract until that happens

7

Can life and preservation of the body have material measurable value to be consideration?

Yes

8

Can a moral obligation be sufficient consideration to support a later promise to pay if the Promisor got a material benefit?

Yes

9

What are consideration substitutes?

- CL: promissory estoppel
- UCC: merchant's firm offer rule, and modification to a contract

10

What is an infant?

Anyone under 18, and that counts at the very first moment of the day before his 18th birthday

11

Once an infant avoids a contract, what happens to the transaction?

It is treated as a void from the beginning

12

What are the two views about infants disaffirming conveyances and reclaiming real property from a later BFP?

- CL: can reclaim RP
- UCC: the disaffirmance has no effect on later BFP

13

What are transactions and infant cannot avoid?

Contract to support a child out of wedlock, necessities of life provided to his kids, necessities for himself (just liable for reasonable value), bail bonds, liable for his torts, for received benefits under a contract, insurance/banking/education loans, etc

14

What are the things that are considered necessities?

Food, shelter, clothing, medical services, legal services, education

15

Infants are liable for their torts, but what is a tricky situation?

If the tort is really a breach of contract, the infant cannot be sued for it

16

If an infant willfully misrepresents his age, can he still use his powers of avoidance to avoid the contract?

Yes, but the defrauded party can avoid the contract on grounds of fraud

17

Are principal minors liable for torts committed by their agents within the scope of their employment?

Yes, but split about this

18

What is the uniform transfer to minors act?

Allows a custodian to sell the infant's property and reinvest the proceeds

19

What is disaffirmance?

The power for an infant to avoid a contract, that can happen anytime before ratification, and is a revocable

20

When can an infant disaffirm a contract?

- majority: Only after he has reached 18
- minority: can be before

21

If an infant tries to disaffirm a contact, can he just enforce some parts and dissafirm others?

No, the whole contract is avoided

22

What is a ratification?

A promise to perform a voidable obligation (cannot happen until person has reached majority and infant must know the The legal consequences).
- majority everyone presumed to know the law
- minority: no ratification without full knowledge of legal consequences

23

If you were almost 18 and enter a contract, then turn 18 and promise to perform, is that contract enforceable?

Yes even if there is no new consideration