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Flashcards in REG 26 Deck (17):

What does a person have a right to notification of as far as creditors action.

If creditor prepares an investigative report. This is why you sign a consent form when you apply for a loan.


Do you have a right to see your report and adjust it?

See it yes, adjust it no, but you can request items be changed.

Fair Credit Reporting Act


In addition to bill/credit stuff, what else do credit agencies keep track of?

Employment history, judgements, arrest records.


What is a bilateral contract versus a unilateral contract.

Unilateral - one party makes promise for another party's act, reward for your missing dog (the person can't promise to find your dog), insurance contract if something happens they will pay

Bilateral - a promise for a promise, promise to pay for promise to deliver title


Contract law - when are rejections/revocations effective. How about acceptances?

Received by person or agent.

Acceptances are effective upon dispatch.


Does a promise have to have consideration to be enforceable.
What does the consideration have to be?

And of course there's the f*!*! exception.

Legally sufficient, bargained for

No consideration: you back out of a donation to a charitable org after they incurred expenses


Can consideration be unreasonable, dispropritionate, inadequate or unfair?

Yes if its properly bargained for, mutual and not unconscionable.


What is a quasi contract?

Although no contract was formed, court may allow recovery because of unjust enrichment by the other


A minor makes a contract, can the person they made it with void it?

No only the minor can void it.


Contracts must be signed by whom

The party against whom enforcement is sought.


Employee Stock Options TIP

What is the only taxable ESO at time of distribution?

Non Qualified

Other ESO's are capital gains later if sold

Sure about this


How many parties does a draft have?



What is a promissory note, how many parties?

Two party instrument in which one party promises to pay another a fixed amount of money.


What are the legal differences between a negotiable instrument and a contract right and how they are transferred?

Negotiable Instrument - Presumed (prima facie) to have been issued for consideration
Contract have to prove consideration (to be enforceable)


Which requires possession to be transferred - contract right or negotiable instrument.

Contract right can be transferred orally and without transfer of possession.

Negotiable instrument - requires possession to transfer right (and endorsement if it is order paper, not if it is bearer paper).


Does a negotiable instrument always have to be in writing to be enforceable? Think about statute of frauds and put it this way. How about contract rights.

Negotiable instrument always has to be in writing to be enforceable (i.e., statute of frauds doesn't matter). Whereas some contracts have to be in writing.


Third party defenses against an assignor of a contract right or a negotiable instrument, what are the defenses?

then it says for the negotiable instrument (unless a HDC or a holder through a HDC)

In other words if it gets transferred to you (transferee) if it's a negotiable instrument and ur not an HDC or you're a transferee of a contract right you are subject to what defenses that third parties could assert against the person who transferred the thing to you

Interesting that they don't call it an asignee (?)

Anyway, if u are non-HDC (or holder through an HDC) is subject to all the common law of contracts defenses or personal defenses. These are distinguished from the real defenses provided by Article 3 of the UCC - fraud, forgery, adjucated insanity, material alteration, infancy, illegality, duress, discharge of obligor in bankrupcy, suretyship defense, statute of limitations)

Personal defenses are those which render a regular contract void (and a non-hdc holder of commercial paper) such as: instrument is uncomplete (but delivered), delivered (but uncomplete), forgery, duress, illegal consideration, got it by unlawful means, no consideration, material alteration, fraud in inducement or execution