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;
15 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
A _________, which is a fundamental requirement of a contract, must be met by one party prior to the other party having an obligation to perform.
|
Condition
|
A condition is different than a promise. If a party fails to meet a condition, the contract has not been breached. Instead, after a failure to meet a condition, there is no contract. The two types of conditions are express and implied.
|
|
|
_________ is the completion or termination of a contract.
|
Discharge
|
Discharge by performance (both parties fulfilled their obligations), breach, anticipatory breach, agreement of the parties, and operation of the law are a few ways a contract can be discharged.
|
|
|
Even if the maturity date of a contract has not been reached, a(n) __________ breach occurs when one party of a contract expresses that he will not perform as agreed.
|
Anticipatory
|
One of the parties must clearly state or imply that the contract will be breached for an anticipatory breach to occur.
|
|
|
_________, which is the intentional misrepresentation of a material fact with the intent to defraud, must be based on facts (not opinions).
|
Fraud
|
The following five elements must be present to be considered fraud:
1 – Material fact was misrepresented 2 – Misrepresentation was deliberate 3 – There was intent to defraud 4 – The information was justifiably relied upon 5 – The other party suffered injury |
|
|
If a party does not want his contract assigned, he can place a ________ of assignment within the contract.
|
Prohibition
|
A party can expressly forbid (prohibit) assignment or they can require consent for assignment.
|
|
|
The Statute of Frauds only applies to executory (unperformed) contracts. It does not apply to ___________ (performed) contracts.
|
Executed
|
If an oral agreement was made and is satisfied, it is no longer covered by the Statute of Frauds and becomes enforceable.
|
|
|
Article 2 of the UCC requires higher standards of conduct out of __________ than it does out of non-__________. (only one answer is needed—each answer is the same word)
|
Merchants
|
A merchant is someone who deals a certain type of goods or has a knowledge or skill related to that type of goods.
|
|
|
Contracts for the sale of goods above $500 are covered by the Statute of Frauds and the ________ 2-201 (3)(c).
|
UCC
|
A contract for the sale of goods above $500 requires a written memorandum. However, this statute only applies to executory (unperformed) contracts.
|
|
|
The Statute of Frauds originated with the __________ Parliament in 1677.
|
British
|
The original bill, which was called “An Act for the Prevention of Frauds and Perjuries” declared that certain types of contracts, which were particularly subject to abuse and fraud, have written memorandums.
|
|
|
Laura has a contractual obligation to pay David $500, but does not have the cash. Laura, who is an interior decorator, agrees to help Ashley decorate her home if Ashley pays $500 to David. A ___________ beneficiary had a contract with one of the two original parties.
|
Creditor
|
David is the creditor beneficiary of the contract between Laura and Ashley. If for some reason Ashley does not pay David, David can still sue Laura.
|
|
|
The Statute of Frauds requires a __________, which is written evidence of the contract. Without written evidence, the enforcement of these types of contracts may be barred.
|
Memorandum
|
The memorandum has to include (at a minimum):
1 – All essential parts of the transaction 2 – Have the signature of the party being bound 3 – Identify the other party |
|
|
____________, which is commonly used in advertising, is flattery or exaggerated praise.
|
Puffery
|
A restaurant advertising “World’s best apple pie” is puffing and you do not have a case (warranty or guarantee) if you feel that the apple pie at another restaurant is better. Puffery will often use the words “best” and “greatest.”
|
|
|
The party to whom rights and responsibilities are assigned is referred to as the ________ .
|
Assignee
|
The assignor is the original party who is assigning the rights and responsibilities.
|
|
|
With a contract each party:
___ Makes an offer ___ Gains a right and a duty ___ Is paid consideration ___ Accepts an offer ___ Has first right of refusal |
Gains a Right and a Duty
|
Normally rights are assignable, that is, they can be transferred to a third party. Sometimes duties can be transferred, but oftentimes non-routine duties must be fulfilled by the contractual party.
|
|
|
The Uniform Commercial Code (UCC) requires all transactions over $_____ to have written evidence. Without written evidence, the enforcement of a contract may be barred.
|
$500
|
Be familiar with the following types of contracts that are covered under the Statute of Frauds:
(MY LEGG) 1 – Contract in consideration of Marriage (M) 2 – Contract not to be performed within 1 Year (Y) 3 – Contract for the sale of Land (L) 4 -- Promise to pay a debt of an Estate out of personal funds (E) 5 – Contract for the sale of Goods above $500 (G) 6 – A Guarantee to pay another person’s debt (G) |
