Consideration-2
If someone sells a home worth $300,000 for only $1.00, what type of consideration was provided? Is this consideration fair?
Nominal and yes it is fair, because both parties accepted what was offered as fair
These are offered by retailers giving customers 3 months or more to get a sales price and usually come with a rain check. What are they legally known as?
Firm Offers
Minors can disaffirm things as long as they fall into this category
Non-Necessaries (Luxury goods like jewelry, cars)
All marriage agreements must contain a written contract to be considered valid, right?
No! Marriage with consideration does, marriage without consideration does not.
If a 13 year old gets into college and takes out student loans, are they able to disaffirm these agreements because they lack capacity to enter into them? (Yes or no?)
NO
If Jimmy gives Lisa his 2 year old laptop for college and no money is exchanged, what is this transaction called?
A Gift
All Option agreements fall under this type of law?
Common law (UCC law are business or retail agreements)
If a 17 year old lies and tells a retailer they are 19 to get them to sell them a $9,000 diamond ring, they lose their right to disaffirm, correct?
NO! They are still 17 and can disaffirm, but they just misrepresented their age and can be arrested or sued for this act
If a contract contains something in it that is illegal, the entire contract would be considered this.
Void
Any agreement made that turns out to be illegal or made between incompetent parties is considered this.
Void (Never happened)
Cartinelli graduates from Princeton owing $300,000 in student loans. He gets a job paying $150,000 a year but learns his student loan payments of $2300 are too much for his budget. Cartinelli contacts the bank and they agree to give him 1 year off in exchange for more interest. What is this called?
Forbearance
This means acting on a promise made and expecting the other party to do as they promised
Detriment
These are the 3 groups with special capacity rights
Minors, Mentally impaired and intoxicated
When both parties fully complete their part of a contract and it ends, what is this called?
Executed
Olivia offers to sell Emily her Dodge Charger Daytona for $65,000 and she tells Emily she will throw in the extended warranty as part of the deal, knowing Emily would get the extended warranty as the owner already. What is this called?
Existing Duty (Private)
What title is given to a person who gives a gift and what title is given to the person who receives the gift?
Donor and donee
This is the legal rule that allows a party to force another party to live up to their promise because a legal detriment was taken on, you suffered a substantial economic loss and need the courts help enforcing the promise
Promissory Estoppel
Ken bought a speed boat when he was 17 and agreed to make payments for 3 years. After turning 18, he made 1 more payment, then decided the payments were too high, so he attempted to disaffirm the agreement. He can still disaffirm, right?
No, the payment made after turning 18 would ratify the agreement, because he did it as an adult.
If a contract has legal and illegal parts within it, the contract is called this
Divisible
You go to a garage sale to get things for College in the fall and find the perfect Dorm Fridge, for your pop, snacks and ice cream. The seller wants $200 and you have $50 on you. You give the person the $50 so you can go to the bank to get out the other $150. What is this called and what law does it fall under?
Option (Collateral) and Common Law
This is an open ended promise where either party can back out of the promise at any time
Illusory Promise
Name all of the 4 elements of Promissory Estoppel
Rely on promise, act in reliance (Detriment), suffer a substantial economic loss and courts help needed
If a court orders a 13 year old to be taken out of their parents home and place in a foster home, what took place?
Formal Emancipation
Name 4 of the 5 things within the Statute of Frauds (Contracts that must be in writing to be valid)
$500+, 1 year to complete, co-signer, marriage with consideration and property ownership
Brady creates a new cereal called blue falcon bits. He goes to Wegmans to get them to put it on their shelves and sell and they are not interested. Brady says to them "Buy a full pallet of them, try to sell them and if they don't sell, ship them back and I'll give you all your money back". This was offered to Wegmans
Requirements Contract