REG 2 - R6 Contracts Flashcards Preview

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Flashcards in REG 2 - R6 Contracts Deck (20):
1

Defense of Fraud

The common law requires a showing of intent to deceive.

2

Fraud in the Inducement

The victim was deceived as to the reason for transaction.

3

Fraud in the Execution

A misrepresentation of the contents of a document by which one is induced to sign thinking it to be other than what it is.

4

Parol Evidence Rule

Does not allow evidence of prior oral or written agreements to contradict the terms of a complete contract. But allows subsequent agreements.

5

Minor Breach of Common Law

Those affected by minor breaches to their contract can only seek damages.

6

Statute of Frauds

Concerned about who has signed a contract

7

Scienter

The right to recover damages if there was an intentional false statement.

8

Rules of Assigning Contracts

1. Allowed even if contract disallows assignment.
2. Isn't effective against the person who owes money (debtor, obligor) unless they receive notice.
a. If they don't receive notice, it's not considered
invalid, just not enforceable until notice is received.

9

Assignment of Rights

If a party wants to give contract rights to a third party

10

Delegation of duties

If a party wants to have a third party perform contractual duties.

11

Assignment of all rights under a contract

Both assignment of rights and a delegation of duties

12

Failure to have a license is void if

The license is required to have to protect the public instead of just making money

13

Statute of limitations for breach of contract

Begins once the contract has been breached.

14

Oral evidence is permissible when the contract is

1. Incomplete
2. Ambiguous (unclear)
3. Invalid
4. Subject to a condition precedent (event required before something else will occur), or modification is made when original contract is written

15

Rescission

Undoes a contract and restores parties to position they would have been in if the contract were never made.

16

Novation

Original parties enter into new contract, where one of these parties is replaced by a new party. All parties must agree.

17

Compensatory Damages

Damages that compensate for the breach

18

Specific Performance

A court order to perform under the terms of the contract (forced performance)

19

Effective consideration must be

Legally sufficient ( the law must recognize it as consideration)

20

Duress

Occurs when a person overcomes the will of another through wrongful force or threats of imminent force