REG 6.0

Question 1

*Common law contracts entail (Statue of Frauds)? (RISE)

Answer 1

1. Real Estate
2. Insurance
3. Services
4. Employment

-Pay the debt of another also falls within the category (does not have to be over a year)

Question 2

*What are the terms when considering UCC vs RISE?

Answer 2

• RISE = All terms needed
• UCC = Only quantity needed

1. Identity of offeree and subject matter
2. Price
3. Time
4. Quantity
5. Nature

Question 3

• Describe the mailbox rule?
• When are acceptances effective?
• When effective revocations, rejections, counteroffers?

Answer 3

• Post marked = day acceptance is good
• UCC = no mirror image rule
• UCC risk of loss controlled by shipping terms
• Acceptance: when placed in mailbox
• Revocation: refers to the cancelling or annulment of something by some authority. When revocation happens, a privilege, title, or status is removed from someone

Question 4

• Defenses void or voidable?
• What are most contracts?
• Are most contracts assignable?

Answer 4

• Very few defenses make a contract void
• Fraud in the inducement
• Void if adjudicated
• Most defenses make a contract voidable
• Generally all contracts are assignable unless the assignment would result in a change in the obligor’s risk -Insurance policies cannot be assigned

Question 5

• Define MAIDS concerning fraud?
• Negligent Misrepresentation?
• 4 Elements to prove common law ordinary negligence?

Answer 5

*Misrep of material fact
Actual and justifiable reliance
Intent to induce reliance on misrep
Damages
Scienter

*Plaintiff must show actual and justifiable reliance on misrepentation

*Damages
Duty of Care
Breach of Duty
Causation

Question 6

• What is accord and satisfaction?
• What is novation?
• What is parol rule?

Answer 6

• Accord is an agreement to substitute one contract for another
• Satisfaction execution of the accord
• Same parties different agreement

*Different parties, new party substitutes old party

• Prior or contemporaneous statements that contradict the writing are inadmissible (not allowed)
• Subsequent statements are admissible (allowed)

Question 7

• What is specific performance?
• T/F a promise to pay the debt of another must be evidenced by some type of writing?
• Statute of Frauds, who must sign the agreement?

Answer 7

• A court order to perform under the terms of a contract
• Generally available only in contracts for unique or rare property
• T
• Does not have to be signed by both parties, merely the party to be charged

Question 8

• Disaffirmed?
• Ratified?
• Recission?
• Rescinded?
• Reject?
• Replevin?

Answer 8

• Disaffirmed: right to cancel or rescind a contract
• Ratified: Acceptance of a contract by a party
• Recission: Undoes and restores parties to positions they would have been in
• Rescinded: Revoke, cancel, or repeal
• Reject: dismiss as inadequate
• Replevin: Legal right to recover goods wrongfully in the hands of another

Question 9

• UCC what are the rules for passage of title?

* When does firm offer apply?

Answer 9

• 1.Title pass when parties agree
  2. If parties do not agree then title pass upon delivery
  3. Buyer rejects good title revert to seller
• 1.Writing
  2. Must be a merchant

Question 10

*Tort liability applies when?

Answer 10

• In defective condition when sold
• Seller in business of selling goods
• Caused injury
• Reached customer w/o substantial change
• Shipping terms key to who bears risk if loss

Question 11

• What is a warranty of fitness?

* What does the Statute of Limitations do?

Answer 11

• When a buyer relies on the seller to choose goods suitable for the buyers purposes
• Bars access to judicial remedies, makes a contract unenforceable

Question 12

• Perfect Tender?
• Rejection of Performance?
• Anticipatory Repudiation?

Answer 12

• Buyer may reject goods unless good tendered conform completely with contract.
• If non merchant risk of loss pass to buyer upon tender of goods
• Refusal of a tender of performance by the other party
• Buyer or seller indicates in advance of performance that he or shill will not perform

Question 13

• When can a buyer recover goods from an insolvent seller?

* If shipping nonconforming good when does risk of loss pass to buyer?

Answer 13

• If the goods are identified in the contract

* Regardless of shipping terms risk remains with seller until reaches buyer

Question 14

*Liquidated Damages

Answer 14

• Enforceable if
• REASONABLE
• not a PENALITY