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8 Cards in this Set
- Front
- Back
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When is a contract divisible?
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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.
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A promise to answer for the debts of another . . .
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. . . 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.
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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?
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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.
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When a buyer is actually insolvent, and a seller has in the contract agreed to sell on credit, a seller may . . .
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. . . refuse to deliver except for payment in cash, and may demand cash payments for already-delivered goods too.
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When a seller Reclaims goods from an insolvent buyer, what remedies remain to the seller?
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None. Successful reclamation of goods from an insolvent buyer excludes all other remedies with respect to those goods.
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When may a seller reclaim goods from an insolvent buyer?
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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.
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Perfect Tender Rule and one of its Exceptions
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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
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What does a prohibition on "assignment of the contract" mean?
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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.
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