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8 Cards in this Set

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  • Back
When is a contract divisible?
A K is divisible when 1. the performance of each party is divided into 2 or more parts; 2. the number of parts due from each is the same; and 3. there is an agreed-upon equivalence between the corresponding parts A K is not divisible merely because it calls for installment payments. Rather, the payments must correspond to the value of work performed.
A promise to answer for the debts of another . . .
. . . must be in writing under the statute of frauds. Note that "answer for" means Guarantee or Act as Surety for, not merely pay off. So if A agree to make payment to B's creditor instead of B, that agreement does not fall into the SoF category because A is not Guaranteeing B or acting as a Surety for B.
A sells an option to B for 30 days. During that period, B calls A and tells A that he doesn't want to go ahead with the deal unless the price is lowered. Is the option contract terminated?
No. An option contract survives counter-offers etc that occur during the options period. HOWEVER, IF A DETRIMENTALLY RELIES ON THE COUNTER-OFFER, the Option Terminates then.
When a buyer is actually insolvent, and a seller has in the contract agreed to sell on credit, a seller may . . .
. . . refuse to deliver except for payment in cash, and may demand cash payments for already-delivered goods too.
When a seller Reclaims goods from an insolvent buyer, what remedies remain to the seller?
None. Successful reclamation of goods from an insolvent buyer excludes all other remedies with respect to those goods.
When may a seller reclaim goods from an insolvent buyer?
A seller may reclaim goods upon demand WITHIN 10 DAYS after the buyer received them if the seller discovers that the buyer received the goods ON CREDIT WHILE INSOLVENT.
Perfect Tender Rule and one of its Exceptions
The general rule for Sale of Goods is that a buyer is entitled to perfect tender of goods. If however the course of dealings between the parties suggests that non-conforming goods will be acceptable, then upon notification of intention to cure, the seller must be given a reasonable time to cure
What does a prohibition on "assignment of the contract" mean?
Unless the circumstances indicate the contrary, such a prohibition bars only the delegation of the duty to perform to some other party, ont the assignment of the right to receive payment.