exam 3
a party seeks to introduce evidence of a subsequent oral agreement modifying a written employee contract from 2 to 3 years. the oral agreement is
admissible under the parole evidence rule but invalid because of the statute of frauds
Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?
an oral statement such as this is not enforceable because it is within the statute of frauds if it were in writing it would be enforceable
the delegator is discharged and the third party becomes directly bound on his promise to the obligee 3rd party takes over for the delegator- he is no longer liable
novation
requires the independent promise to pay the debt of another to be in writing
statute of frauds
under the parole evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement?
subsequent oral or written agreements
it has particular importance in the construction industry does not defeat the purpose of the contract
substantial perfoamance
The computation of time for the one year provision of the statute of frauds starts when
the agreement is made -- not when the performance is to begin
What is another name for the main purpose doctrine?
the leading object rule
Barbara owes Arturo $2,000. On July 1, Arturo assigns the debt to Charles. Thereafter on July 15, Arturo assigns the same right to Dennis, who in good faith gives value for it and knows nothing about the first assignee. Dennis immediately notifies Barbara of the assignment. Under:
the minority (english) rule, Dennis has priority
what will terminate an agency coupled with an interest
the payment of the loan to the agent
an agent who represents an undisclosed principal is discharged from liability if:
the third party gets a judgement against the principal
XXX that satisfies the statute of frauds provision for a writing includes that:
the writing or writings must: 1. specify the parties in the contract 2. specify the subject matter and essential terms 3. be signed by the party to be charged or her agent
contract in which one party promises to render a performance to a third person
third party beneficiary
authority that is not found in the express or explicit words of the principal, but that is inferred from the words is known as
actual implied authority
3 violations of the breach of fiduciary duty:
1. breach of contract 2. in tort for losses caused and possibly punitive damages 3. in restitution for profits he made or property received in breach of the duty
3 ways an agent may lost the right to compensation:
1. by breaching the agency contract willfully and deliberately 2. if the specified result of the contract is not obtained 3. if the duty of loyalty is breached
3 non-delagatable duties
1. duties that are personal 2. duties that are expressly nondelegable 3. duties whose delegation is prohibited by statute or public policy
3 things that constitute as breach of obedience
1. entered into an unauthorized contract for which his or her principal is then liable 2. committing a tort for which the principal is now liable 3. improperly delegating her duty
the UCC afticle 2 statute of frauds provision applies to the sale of goods for the price of _____ or more
500
a contract by which an obligee promises to accept a satisfaction
accord
In the states that have adopted it, the UETA:
Encourages a gives full effect to electronic contracts
under the provisions of the foreign sovereign immunities act:
US courts may take jurisdiction in a suit against a foreign country for commercial acts by that government that has a direct effect in the united states
roger bought a VCR but he may return the VCR within 10 days and get all of his money back. this is an example of:
a condition subsequent
annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter, sue, as a graduation present. in this contract, sue is
a donee beneficiary
who would not have authority to contract with third parties on behalf of principal?
a factory worker hired to operate machines a farm worker who works in the fields
subject to the same duty of loyalty as other agents
a gracious agent -- one without consideration
Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n): "
a satisfaction
the parole evidence rule will bar the introduction of:
a typo
rights that are not assignable
assignments that materially increase the duty, risk, or burden upon the obligor assignments of personal rights assignments expressly forbidden by the contract assignments prohibited by law
which of the following is an exception to the suretyship provision requirement under the statute of frauds? a. a collateral promise made to creditor b. a promise, the leading object of which is to obtain economic benefit for oneself c. a promise by an executor to pay the debts of the descendent from the executors own funds d. none of the above
b
after an effective delegation of duties, who is liable to the obligee for performance of the contractual duty?
both the delegator and delegatee
will wants to buy a new car. he goes to the bank to get a loan for the purchase, and signs a loan agreement to pay $10.00 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. the bank is a
creditor beneficiary
under the foreign corrupt practices act "anything of value" is interpreted by the act to be:
cash or cash equivalent discounts, entertainment, or gifts
an event that must occur before performance is due under a contract
condition precedent
an event that terminates an existing duty (ex: sale and return of goods)
condition subsequent
what is not required for an effective assignment?
consideration is not required to be an effective assignment
a third person intended to receive a benefit from the agreement to satisfy a legal duty owed to her
creditor beneficiary
an example of an unenforceable oral contract is: a. an oral promise to guarantee the additional duties of another if this person does not perform his duties b. an oral agreement to substitute different land for the described in the original lease contract c. an oral agreement to extend an employees contract for 6 months to a total of 2 years d. all of the above
d
in which of the following situations is restitution available as a remedy? a. as an alternative remedy for a party injured by breach b. for a party in default c. for a party who may not enforce the contract because of the statute of frauds d. all are situations in which restitution is available
d
if dan owes sarah $1,000 and the parties agree that dan will paint sarahs house in satisfaction of the debt, when dan paints sarahs house:
dan will discharge the $1,000 debt
a third party intended to receive a benefit from the contract as a gift
donee beneficiary
if a writing incorrectly states the quantity term agreed upon, the contract is
enforceable, but only to the extent of the quantity of goods stated in the writing
In determining the meaning of a contract under the UCC, which of the following will have first priority?
express term
a taking of property in accordance with national law and with payment to the owner of just compensation is an:
expropriation
a clause apportioning the liability and responsibility of the parties in the event of an unforeseeable occurrence, such as a typhoon, tornado, or other disaster
force majeure
the CIGS specifically excludes the sale of:
goods bought for personal, family, or household use ships or aircraft electricity
what is true about successive assignments of the same right?
in a majority of states, the first assignee is to receive the assignment prevails
A(n) ____ is a third party who obtains possible benefits but no rights under a contract.
incidental beneficiary
stark enters into a contract with a contractor to build a large shipping mall in river city. Donner will benefit from this contract since his restaurant is adjacent to the planned mall. Donner in this instance is a(n):
incidental beneficiary
third party whom the two parties to the contract have no intention of benefitting by their contract and who acquires no rights under the contract
incidental beneficiary
third parties intended by the two contracting parties to receive a benefit from their contract
intended beneficiary
an undisclosed principal may result in:
liability of the agent for any contract made on behalf of such a principal
benefit of the bargain rule
lied about price - what you sold it for = damage award owed
fred contracts to sell a certain piece of land to mary for $20,000 but the contact is silent as to the time of delivery of the deed and payment of the price. according to the law, the payment and delivery are:
mutually dependent, and in the absence of an agreement to the contrary, are concurrent conditions
barrys sport shop calls champion tee shirt company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100?
no, because barry does not have a writing signed by champion tee shirts
sand orally promised frost a 10,000 bonus, in addition to a monthly salary, if frost would work for two years for sand. if frost works for the two years, will the statute of frauds prevent frost from collecting the bonus?
no, because frost fully performed in reliance on the oral contract
transfer of a portion of contractual rights to one or more assignees
partial assignment
the code greatly alters the common law doctrine of material breach by adopting what is known as the
perfect tender rule
relieves the agent of liability
ratification
E-sign Provides consumers must:
receive a "clear and conspicuous" statement informing them of their right to withdraw consent to receiving electronic records
process whereby a court "rewrites" or corrects a written contract to make it conform to the true intentions of the parties
reliance damages
a form of liability without fault the liability of the principal under the doctrine is vicarious and depends upon proof of wrongdoing by the employee within the course of his employment
respondeat superior
the performance of an accord discharges the original duty
satisfaction
the subjective standard is used to determine the
satisfaction of a specifically manufactured good
what would not have to be contained in a memorandum, which satisfies the general statute of frauds writing requirement?
signature from the person suing they are making the case so they are aware of what is in the contract they made
bartow signed a contract to coach baseball for washington high for a period of 3 years. 2 years in he leaves for an assistant job at a university. contract law will not allow washington high to ask for
specific performance of his contract
A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is:
true because of the statutes of limitations
would a letter written after the execution of a contract and which contained agreements different from those in the written contract be admissible under the parole evidence rule?
yes, it would be admissible, because it is subsequent to the written agreement
carolyn, a cashier at a supermart, may cash checks for up to $20 over a purchase mount. a friend needs money for a dress so carolyn cashes a check for $50 with no purchase. the check bounces. is carolyn liable?
yes- because she violated her duty of obedience
