Contracts & Agency - Cpa

Front 1

Criteria for valid contract

Back 1

Offer
Acceptance
Genuine assent
Consideration
Legality
Capacity

Front 2

Contract is void if there is a defect in:

Back 2

Offer, acceptance, consideration, or legality

Front 3

Contract is voidable if there is a defect in:

Back 3

Capacity or genuine assent

Front 4

Criteria of an offer

Back 4

Intent
Communication
Definiteness

Front 5

Offer is terminated if:

Back 5

Expiration of offer
Item offered for sale is destroyed
Offer withdrawn by offeror in writing at any time prior to acceptance
Death or insanity of offeror or offeree
Rejection by offeree
Counteroffer

Front 6

Communication rules:
Acceptance
Rejection
Withdrawal by offeror

Back 6

Acceptance: must be sent but need not be received

Rejection: must be received

Withdrawal by offeror: must be received

Front 7

Instances where agreement is defective even though there is offer and acceptance

Back 7

Misrepresentation by offeror
Duress
Undue influence
Unilateral mistake
Mutual mistake
Lack of mutuality

Front 8

Categories where capacity is lacking

Back 8

Minors
Insane persons
Drunk persons

Front 9

Distinction between necessaries and non-necessaries for contracts involving a minor

Back 9

If contract is for necessaries, minor must pay reasonable value for what he received

Front 10

Requirement for insane person to disaffirm a contract

Back 10

Insane person must return item in condition it was in at time of purchase

Front 11

Exculpatory clause: enforceable?

Back 11

Not enforceable if consumer is involved; enforceable if contract is between two businesses

Front 12

Statute of frauds: contracts that must be in writing to be enforceable

Back 12

Promises to pay the debts of another
Contracts for sale of real estate
Contracts that cannot be performed within 1 year of agreement
Contracts for sale of goods of $500 or more

Front 13

Statute of frauds: who must sign?

Back 13

Party charged with performance

Front 14

Parol evidence rule: exceptions (admissible evidence)

Back 14

Subsequent modifications of a written contract
Evidence of fraud or misrepresentation
Duress
Undue influence
Mistake
Ambiguous terms

Front 15

Assignment of contract rights is not permitted if assignment involves:

Back 15

Material increase of risk

OR

Unique personal service

Front 16

Situation where specific performance may be required as a remedy

Back 16

Sale of a rare or unique item, or real estate

Front 17

Agency: 3 forms of authority

Back 17

Actual or express authority
Apparent or ostensible authority
Ratification authority

Front 18

Requirements for principal to ratify contract made by agent

Back 18

Principal must have capacity
Principal must have knowledge of agent's acts
Principal must have existed at time of contract
Principal's identity must be disclosed
Principal must ratify before other party withdraws

Front 19

Employee negligence: is employer liable?

Back 19

Yes, if tort committed within scope of employment

Front 20

Employee intentional tort: is employer liable?

Back 20

Yes, if tort committed within scope of employment AND incident was reasonably foreseeable

Front 21

Duties of agent to principal

Back 21

Fiduciary duty
Confidentiality
Obey instructions
Act with reasonable care
Keep an accounting
Keep property separate

Front 22

Duties of principal to agent

Back 22

Act in good faith
Refrain from thwarting agent's activities
Compensation

Front 23

Termination of agency by operation of law

Back 23

Death of principal or agent
Insanity of principal or agent
Bankruptcy of principal
Illegality of agency purpose

Front 24

Agreement to keep an offer open is valid if:

Back 24

Offeror receives consideration

Front 25

Acceptance is valid when:

Back 25

Sent (mailbox rule)
Mirror image rule is met

Front 26

Situations where consideration is not required

Back 26

Charitable subscription

Renewal of a debt barred by statute of limitations

Composition agreement by creditors

Front 27

Beneficiaries who may enforce contract even though not party to it

Back 27

Donee beneficiaries
Creditor beneficiaries

Front 28

Performer is entitled to what amount of payment if:

Substantial performance
Material breach

Back 28

Substantial performance: contract price less any damages

Material breach: no payment

Front 29

Agent is not liable for contract if (general rule):

Back 29

Agent has authority

AND

Principal was fully disclosed

Front 30

Situations where agent can be liable along with or instead of principal

Back 30

Existence or identity of principal was not disclosed (principal and agent are liable)

Principal did not exist when contract was made (agent alone is liable)