Term
| Seventeen and a half year old Anne puts a sign on her tree house that says, "For Sale, $500". The sign is an _____ , which is defined as _____________________. |
|
Definition
| advertisement, an invitation to make an offer. |
|
|
Term
| Bob see's the sign and says to Anne, "I'll give you $500 for the tree house". Bob has now made an ______ in which Bob is the _____ and Anne is the ______. |
|
Definition
|
|
Term
| What two (2) additional steps will be needed before Anne and Bob can form a contract for the sale of the tree house? |
|
Definition
| Acceptance, Anne accepting Bob's offer. Validation, on the form of a consideration, something of value changes hands. |
|
|
Term
| Which specific statute of frauds will determine whether this particular contract will have to be written? __________________. Why did you choose that one? __________________. |
|
Definition
| Statute of frauds with real property, all real estate and sales over $500 must be in writing. |
|
|
Term
| Anne says, "I won't take $450, but i'll sell you the tree house for $480 if we can agree on the other terms in the contract. Anne has just exercised her power of _________ and made a _______. Anne is now the _________. |
|
Definition
| rejection, counter offer, offeror. |
|
|
Term
| Since bob is only 17, this contract will be a _____ contract. What does that mean for Bob? ___________ |
|
Definition
| Voidable, since he is a minor he can technically get out of the contract. |
|
|
Term
| Anne and Bob discuss all of the terms that they want in the contract. Anne and Bob know that the _________ rule requires that all terms that the parties want to be enforceable be included in this final contract. |
|
Definition
|
|
Term
| Anne and Bob write out all the terms that they want in the contract. Since this is a written contract. Anne and Bob know that the rule says that a court would not even consider any terms made orally. |
|
Definition
|
|
Term
| One of the terms in the contract states, "seller confirms that tree house is available to buyer for the purposes of inspection provided that buyer inspects during daylight hours". The first half of that sentence is a ________ and the second half is a __________. |
|
Definition
| covenant, condition. ~could be a promise if there are no provisions. |
|
|
Term
| Anne and Bob agree to terms and exchange consideration. The contract now creates _____ and _____ for each party. If either party were to fail to fulfill the second of those things, that party would ______ the contract. |
|
Definition
|
|
Term
| The other party would then be called the ______ party and could ask a court for a remedy. What does a remedy do? __________ |
|
Definition
| aggrieved, makes the aggrieved party whole. |
|
|
Term
| Anne and Bob agree to terms, one of which states that Bob will pay Anne for the car in nine monthly installments of one thousand dollars each, commencing one month after signing the contract. Bob and Anne sign the contract on Oct. 1, 2013, and Bob give Anne one dollar at that time. On Nov 1, 2013 Bob gives Anne one thousand dollars. The one dollar is ______, and it _________ the contract. The one thousand dollars is part of ________. |
|
Definition
| consideration, validation, agreement. |
|
|
Term
| The normal contractual remedy is _____ damages, which has these three sub cats ______, ______, and _______. |
|
Definition
monetary.
compensatory, punitive and incidental/consequential. |
|
|
Term
| Another possible remedy might be rescinding the contract? Name three grounds for rescission _____,_______ and ______. |
|
Definition
| mutual mistake, duress and fraud. |
|
|
Term
| Bob now wants to add a shed under the tree house. Bobs mom, Cathy decides to help. Cathy hires dave, a carpenter, to build the shed for Bob. Ed is Dave's employee. Who is in privity of contract with whom? |
|
Definition
| Cathy is in privity of contract with Dave. Dave is in privity of contract with Ed. Bob is the third party beneficiary of the contract between Cathy and Dave. |
|
|
Term
| Dave tells Ed to install the shed door, but Ed does a bad job. Who can hold whom accountable for the bad job? |
|
Definition
| Cathy can hold Dave accountable, Dave can hold Ed accountable. |
|
|
Term
| The shed building contract is eventually performed to everyone's satisfaction. Bob now decides to buy himself two bicycles to store in the shed. The bicycle dealer and Bob form a contract so Bob gets both bicycles and pays for them over a period of six months. Which article of the UCC requires that this contract does or does not need to be in writing. |
|
Definition
| Article 2, does (over $500) |
|
|
Term
| If the contract were instead to lease the bicycles for $600 over six months, which article of the UCC would it fall under and would it need to be in writing? |
|
Definition
| Article 2a, would not need to be in writing. |
|
|
Term
| One of the terms in the bicycle contract states that the dealer is to repaint both bicycles before Bob picks them up. bob goes to pick up the bicycles on the delivery date specified in the contract, but the bicycles have not been repainted. What three options does Bob have now? |
|
Definition
1.) Bob can accept both bikes, sue for damages.
2.) Bob can accept one, reject one and sue for damages.
3.) Bob can reject both bikes and sue for damages. |
|
|
Term
| Bob gets those options because _________ (which party) has violated the _____ rule. |
|
Definition
| the seller (breaching party), perfect tender. |
|
|
Term
| Before Bob can exercise those options, however, __________ (which party) gets the right to _____. |
|
Definition
| the seller (breaching party), cure. |
|
|
Term
| The dispute is quickly resolved because the bicycle dealer is a reputable merchant. Bob begins making payments on the bicycles. Bob is now a _____________ and entitled to implied UCC warranties. |
|
Definition
| good faith purchaser of value. |
|
|
Term
| Name any two implied warranties that would assure Bob in his bicycle buying and describe each warranty. |
|
Definition
| Implied warranty of good title: shows the seller is legally allowed to sell product. Implied warranty of no security interests: shows that Bob has purchased the bikes and they belong to him (Not as a collateral to the bank). |
|
|
Term
| Bob says to Anne, "I know that I'm an adult and agreed to make the remanining car payments, but I want out of the contract." Anne says, "no". At this point, Bob would have to prove one of four (4) grounds to force Anne to rescind the contract. Name three of those grounds: |
|
Definition
| Mutual mistake, fraud, duress, undue, influence. |
|
|
