Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
01 Option Contract
|
Under New York General Obligations Law (GOL), there is no requirement of consideration to create an option contract. Undre the New York GOL, when an offer to enter into a contract is (1) in a writing, (2) signed by the offeror, and (3) states that the offer is irrevocable, the offer is not revocable during that time period or for a reasonable amount of time, even if the offer is not supported by consideration.
|
|
|
02 Revocation of Unilateral Contracts
|
Under New York law, unilateral contract offers are revocable at any time until completion of performance. Partial performance does not protect the offeree from revocation.
|
|
|
03 Past Consideration
|
In New York, past consideration is binding if (1) the promise is in writing, (2) the past consideration is expressly stated in the writing, (3) the past consideration can be proven, and (4) the writing is signed by the offeror.
|
|
|
04 (No) Seal As Consideration
|
In New York, consideration is required even if the contract is under seal.
|
|
|
05 Consideration for Modifications
|
In New York, contract modifications are valid without consideration, provided that the modification is in writing and signed by the party against whom that modification will be enforced.
|
|
|
06 Infancy
|
In New York, the age of majority is 18; if a person enters into a contract prior to reaching 18 years of age the contract is voidable. There are certain statutory exceptions to this rule where a minor cannot avoid the contract due to infancy: (1) medical obligations, (2) life insurance contracts by anyone 14,5 years or older, (3) educational loans by those 16 years or older, (4) realty contracts by married minors, designated as the marital home, and (5) infant superstars (i.e., athletes or musicians) are treated as adults for contract purposes from the age of superstardom on.
|
|
|
07 Mental Incapacity
|
In New York, the courts distinguish between adjudicated and non-adjudicated incompetents. Contracts of an adjudicated incompetent (a person under guardianship for mental illness) are void and without any legal effect. Contracts of a non-adjudicated incompetent are voidable if the other party can be restored to his previous position. The burden of proof is on the person asserting the defense.
|
|
|
08 Additional Contracts Within the Statute of Frauds
|
In New York, the following agreements are also within the Statute of Frauds: (1) a promise to pay a discharged debt, (2) assignment of an insurance policy, and (3) finder's fees and commission agreements, unless a lawyer or licensed real estate broker is involved.
|
|
|
09 Lifetime Contracts
|
In New York, a lifetime contract must satisfy the Statute of Frauds (i.e., must be evidenced in writing and signed by the party against whom it is enforced).
|
|
|
10 Land Contracts
|
In New York, if an agent acts for the principal in a realty contract, the agency agreement must also be evidenced in writing.
|
|
|
11 (No) Main Purpose Rule
|
New York does not recognize the main purpose rule (under the main purpose rule, if a party agrees to pay off the debt of another, but the main purpose of the payment is to benefit himself, no writing is required).
|
|
|
12 Assignment - Revocability
|
Under the New York GOL, consideration is not required even for a gratuitous irrevocable assignment if (1) the assignment is in writing and (2) the assignment is signed by the assignor.
(Under common law, consideration is not required for a valid assignment of rights. However, consideration is required for an irrevocable assignment) |
|
|
13 Recovering Under a Quasi-Contract
|
In New York, a materially breaching party can recover under quasi-contract if (1) he has substantially performed or fully performed his duties and (2) a statutory exception does not limit his ability to recover under quasi-contract.
|
