Contract Law
What are the four elements of a contract?
Agreement, Consideration, Contract capacity, and lawful object.
What is a bilateral contract?
A promise for a promise.
What are the three types of warranties?
Express Warranty, Implied warranty, implied for a particular purpose.
What are the four types of negotiable instruments?
Drafts, checks, notes, certification of deposit (CD)
What is the difference between a debiter and a creditor.
A debitor is the borrower in a credit transaction, a creditor is the lender.
What is a formal contract?
A contract that requires a special form or method of creation.
What is a unilateral contrat?
A promise for an act.
What is consumer expectation test?
A test to determine merchantability based on what the average consumer would expect to find in food products.
What are the defensives to a negotiable instrument?
Minority, extreme duress, mental incapacity, illegally, discharge in bankrupcy, fraud in the inception, forgery, material alteration.
What is the cash worthyness doctrine.
Court have held that car manufactors are under a duty to design cars so they take into account the posiblilty of harm from someones body striking something inside the car in the case of a car accident.
What is an informal contract?
A contract that requires no special form or mode of creation.
What is an express contract
A contract expressed in oral or written words.
What is foreign substance test.
A test to determine merchantability based on the ability to find foreign objects in food.
What are the three types of delinquency?
forclosures, deficiency judgements, liens.
What is negligence in relation to a product?
Failing to assemble the product, negligent to product design, negligent inspection or testing of product, negligent packaging, failure to warn
Termination of an offer must require
Revocation of offer by the offeror, rejection of offer by offeror, counter offer by offeror, destruction of the subject matter, death or incompitence of offeror or offeree, supervening illegally, elapse of time.
What is an implied-in-fact contract?
A contract inferred from the conduct of the parties.
What are the four major types of defects?
Defective manufactoring, defect indesign, defect in packenging, failure to warn.
What are the types of bankruptcy and chapters?
Liquidation bankruptcy (Chapter 7), Reorganization bankruptcy (Chapter 11), Consumer debut adjustments (Chapter 13)
What is the difference between an offerer and offeree?
An offerer is the party who makes an offer for a contract, and the offeree is the party who the offer was made to.
What are the contract lacking consideration?
Gift promises, illegal consideration, moral obligations, preexisting duty, past consideration
What is a quasi contract?
A contract implied by the law to prevent unjust enrichment.
What are the defensives to product liability.
Supervening event, Generally known dangers, assumption of risk, Misuse of product, statue of limitations and response, contributory and comparative negligence.
Negotiable Instruments must...
Be in writing, signed by maker or drawer, be an unconditional promise or order to pay, state a fixed amount of money, no require undertaking in addition to the taking or any money, be payable on demand or at a definite time, be payable to order or bearer.
What are the functions for a negotiable instrument
Substitute for money, credit device, record keeping device