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68 Cards in this Set
- Front
- Back
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What acts are illegal for contract purposes?
16 |
1. Unenforceable contract
2. Public Policy 3. Lottery |
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Appears to be legal on its face, it may be unenforceable if it was entered into for an illegal purpose (Steal or Kill)
16 |
Unenforaceable Act
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Protection from that which tends to be injurious to the public or contrary to the public good or which violates any established interest of society.
16 |
Public Good
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____ is Any plan by which a consideration is given for a chance to win a prize; it consists of 3 elements: 1__ 2__ 3__
16 |
Lottery
1.There must be a payment of money or something of value for an opportunity to win. 2.A prize must be available. 3.The prize must be offered by lot or chance. (Bingo and lottery can be illegal in some states) |
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What are the agreements not to compete?
16 |
1. Sale of business
2. Employment contract 3.Effect of invalidity Remember (SEE) to remember the three. |
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The lending of money at an interest rate that is higher than the maximum rate allowed by law.
16 |
Usury
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What are the Louisiana Usury Laws? (look at chart given out in class)
16 |
LA Usury Laws applies to customers installment Loans have the following interest limits:
Below $1400 ....36% $1400-4000.......27% $4000-7000.......24% Over $7000........21% |
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What does in pari delicto mean?
16 |
Equally guilty; used in reference to a transaction as to which relief will not be granted to either party because both are equally guilty of wrongdoing.
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Statue that, in order to prevent fraud through the use of perjured testimony, requires that certain kinds of transactions be evidences in writing in order to be binding or enforaceable
17 |
Statute of frauds
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What contracts must be in writing to be enforceable?
17 |
1. Agreements that cannot be performed within one year after the contract is made.
2.Agreement to sell or a sale of an interest in land. 3.Promise to answer for the debt of another. 4. Promise by the executor of a decedent's estate to pay a claim against the estate from personal funds. 5.Promise made in consideration of marriage. 6.Sale of goods priced at $500 or more. |
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Statue that, in order to prevent fraud through the use of perjured testimony, requires that certain kinds of transactions be evidences in writing in order to be binding or enforaceable
17 |
Statute of frauds
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What contracts must be in writing to be enforceable?
17 |
1. Agreements that cannot be performed within one year after the contract is made.
2.Agreement to sell or a sale of an interest in land. 3.Promise to answer for the debt of another. 4. Promise by the executor of a decedent's estate to pay a claim against the estate from personal funds. 5.Promise made in consideration of marriage. 6.Sale of goods priced at $500 or more. |
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When can parol evidence be used?
17 |
It can be used
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When can parol evidence NOT be used?
17 |
1. Ambiguity (one or 2 different meanings in a contract)
2. Fraud, Duress, or Mistake 3.Modification of Contract |
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What governs when there is a conflict in the handwritten, typed, and printed portion of contracts?
17 |
-They either reconcile or eliminate the conflict.
-Consider the form of conflicting terms -Law implies an obligation to act in good faith. |
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Transfer of a right; generally used in connection with personal property rights, as rights under a contract, commercial paper, an insurance policy, a mortage or a lease. (Parties- assignor, assignee)
18 |
Assignment
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What contracts cannot be assigned in an assignment?
18 |
1. Assignment Increasing Burden of Performance
2. Personal Service 3.Credit Transaction remember APC |
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Transfer to another of the right and power to do an act.
18 |
Delegation
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An event that if unsatisfied would mean that no rights would arise under a contract.
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Condition precedent
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Event whose occurrence or lack thereof terminates a contract.
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Condition subsequent
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Equitable rule that if a good-faith attempt to perform does not precisely meet the terms of the agreement, the agreement will still be considered complete if the essential purpose of the contract is accomplished.
19 |
Substansial performance
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What is an example of substansial performance?
19 |
need to find one
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Action of one party to a contract aside when the other party is guilty of a breach of the contract.
19 |
Right of Rescission
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How is a contract discharge of agreement?
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1.Terms of the original contract , such as a provision that the contract should end on a specified date
2.A mutual cancellation, in which the parties agree to their contract 3.A mutual rescission in which the parties agree to annul the contract and return both parties to their original positions before the contract had been made 4.The substitution of a new contract between the same parties 5.A novation or substitution of a new contract involving a new party 6.An accord and satisfaction 7.A release 8.A waiver |
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How is a contract discharge by impossibility?
19 |
1.Destruction of Particular subject matter
2.Change of law 3.Death or disability 4.Act of other party |
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How can a contract be discharge by operation of law?
19 |
1.An alteration or a material change by a party
2.Destruction of the written contract with intent to discharge it 3.Bankruptcy 4.Operation of a statuteof limitations 5.Contactual limitation |
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Giving the consumer a chance to think things over and to rescind (revoke) the contract. Thus the federal _____ gives the debtor the right to rescind a credit transaction w/ in 3 business days when the transaction would impose a lien on the debtor's home.
19 |
Consumer Credit Protection Act
CCPA |
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What are the 3 types of bankruptcy?
35 |
1.Chapter 7 bankruptcy – all of the debtor’s assets (with some exemptions) will be liquidated to pay debts. The debtor who declares Chapter 7 begins again with a nearly clean slate. Chapter 7 is available to individuals, partnerships, and corporations.
2.Chapter 11 bankruptcy – a way for a debtor to reorganize and continue a business with protection from overwhelming debts and without the requirements of liquidation. available to individuals, partnerships, and corporations 3.Chapter 13 bankruptcy – consumers only – works with consumer debtors to develop a plan to repay debt. The individual must owe unsecured debts of less than $307,675 and secured debts of less than $922,975 and have regular income. |
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Proceeding in which the debtor files the petition for relief
35 |
Voluntary Bankruptcy
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Proceeding in which a creditor or creditors file the petition for relief with the bankruptcy court
35 |
Involuntary Bankruptcy
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What is an automatic stay?
How does it affect creditors? 35 |
order to prevent creditors from taking action such as filing suits or seeking foreclosure against the debtor.
It affects debtors BC the stay freezes all creditors in their filing date positions so that no one creditor gains an advantage over other creditors. |
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What is a proof of claim?
35 |
written statement signed by the creditor or an authorized representative, setting forth any claim made against the debtor and the basis for it
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What effect does a discharge in bankruptcy does to a creditor's debt?
35 |
order of the bankruptcy court relieving the debtor from obligation to pay the unpaid balance of most claims (all debts are paid, clean slate)
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What is insurance?
36 |
a plan of security against risks by charging the loss against a fund created by the payments made by policyholders
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What are the 5 kinds of insurance?
36 |
1. Business liability insurance
2.Marine and inland marine insurance 3.Fire and homeowners insurance 4.Automobile insurance 5.Life insurance extra: Flood Insurance |
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What are the 4 classes of ocean marine insurance?
36 |
1.Hull
2.Cargo 3.Liability 4.Freight |
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What does a typical homeowners insurance policy cover?
36 |
A combination of the standard fire insurance policy and comprehensive personal liability insurance. It provides fire, theft, and certain liability protection in a single insurance contract.
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What is term insurance?
36 |
policy written for a specified number of years that terminates at the end of that period
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What is whole life insurance?
36 |
ordinary life insurance providing lifetime insurance protection
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What is Cash Surrender Value?
36 |
sum paid the insured upon the surrender of a policy to the insured
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What is Double Indeminity?
36 |
provision for payment of double the amount specified by the insurance contract if death is caused by an accident and occurs under specified circumstance
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When is death NOT covered in a life insurance policy?
36 |
1.Suicide
2.Narcotics 3.Intentional act of another 4.Execution for a crime 5.War activities 6.Operation of aircraft |
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What is an agency and who are the parties?
37 |
relationship that exists between a person identified as a principal and another by virtue of which the latter may make contracts with third persons on behalf of the principal (Parties – principal, agent, and third person)
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Define employee
37 |
ordinary employee who is not hired to represent the employer in making contracts with third persons
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Define independent contractor.
37 |
contractor who undertakes to perform a specified task according to the terms of contract but over whom the other contracting party has no control except as provided for by the contract
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What are the 3 classifications of agents?
37 |
1.Special agent – agent authorized to transact a specific transaction or to do a specific act
2.General agent – agent authorized by the principal of transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place 3.Universal agent – agent authorized by the principal to do all acts that can lawfully be delegated to representative |
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What are the scopes of an agent's authority?
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1.Express authority
2.Incidental authority 3.Customary authority 4.Apparent authority |
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What are the duties and liabilities of an agent during agency?
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1.Loyalty
2.Obedience and performance 3.Reasonable care 4.Accounting 5. Information |
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What are all the duties and liabilities of a principal to his agent?
37 |
1.Employment according to terms of contract
2.Compensation |
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How can an agency be terminated by operation of law?
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1.Insanity of the principal or agent
2.Bankruptcy of the principal or agent 3.Impossibility of performance, such as the destruction of the subject matter 4.When the country of the principal is at war with that of the agent |
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Define testate
52 |
condition of leaving a will upon death
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Define intestate.
52 |
condition of dying without a will as to any property
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Define testator
52 |
man, woman who makes a will
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Define attestation
52 |
the act of witnessing the execution of a will
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What does codicil mean?
52 |
a separate writing that amends a will
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What is disinheritance all about?
52 |
excluded from sharing in the estate of a decedent
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Define holographic will.
52 |
unwitnessed will written by hand
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Define notarial will.
52 and notes |
Have a notary and have 2 disinterested witnesses (people who do not inherit) present at the signing of the will.
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What is a Living Will.
52 |
document by which individuals may indicate that if they become unable to express their wishes and are in an irreversible, incurable condition, they do not want life-sustaining medical treatments
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What are the duties of an executor or administrator are?
52 and notes |
Executor is named in Will
Adminstrator is not named but appoinyed by court. They have the same duties-- They settle the estate. |
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What is probate?
52 |
procedure for formally establishing or proving that a given writing is the last will and testament of the person who purportedly signed it
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What are Letters Testamentary?
52 |
written authorization given to an executor of an estate as evidence of appointment and authority
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What are Letters of Administration?
52 |
written authorization given to an administrator of an estate as evidence of appointment and authority
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Define the Uniform Simultaneous Death Act
52 |
law providing that when survivorship cannot be established, the property of each person shall be disposed of as though he or she had survived the other
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What is a trust?
52 |
transfer of property by one person to another with the understanding or declaration that such property be held for the benefit of another; the owner in trust for another, upon a declaration of trust without a transfer to another person
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Define a Living Trust
52 |
trust created to take effect within the lifetime of the settlor; also called inter vivos trusts
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Define Testamentary Trust?
52 |
trust that becomes effective only when the settlor’s will takes effect after death
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What is a spendthrift trust?
52 |
A trust that provides that creditors of the beneficiary shall not be able to reach the principal or income held by the trustee and that the beneficiary shall not be able to assign any interest in the trust
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