Contract Law Basics
What is a requirement for a contract to be enforceable under the Uniform Commercial Code (UCC)?
It must be evidenced by a writing that is signed by the party against whom enforcement is sought.
A minor signs a contract to enlist in the military. Can the minor disaffirm the contract? Why or why not?
No, because military enlistment contracts cannot be disaffirmed
If someone has made partial payment, occupied land, and made substantial improvements to the land, can the contract for the sale of real estate be enforced even if not in writing?
Yes, the court will enforce the contract.
What is considered real property under contract law?
Land, buildings, and things permanently attached to land.
If a written contract contradicts a prior oral agreement, which will prevail in court?
The written contract will prevail, as it is considered the final agreement.
If a contract is executed but lacks a signature or writing, how does the court typically treat it?
The court leaves the parties where they are, and neither party can reverse the contract.
A contract that has not been fully performed, and something remains to be done by one or both parties.
Executory contract
What must a contract for real property include under the Statute of Frauds?
A description of the real property, price, and signatures.
If the price of goods is under $500, is a written contract required?
No
What happens when a minor lies about their age and enters a contract?
The minor may disaffirm but can be held liable for false representation.
What is the difference between a contract and a quasi-contract?
A contract is an agreement between two parties, while a quasi-contract is imposed by law when no agreement exists, but one party benefits unfairly.
What happens if a contract is void due to an illegal act, but one party rescinds before the act occurs?
The party can recover their payment or enforce the legal part of the contract.
John agrees to sell Sarah 10 chairs for $600, but there is no written contract. Is the agreement enforceable? Why or why not?
No, because the price exceeds $500.
Under the Statute of Frauds, what must happen for an oral contract to be enforceable in real estate transactions?
The buyer must have made partial or full payment, occupied the land, or made substantial improvements to the property.
How will a court interpret a conflict between a handwritten statement and a printed form contract?
The handwritten statement will take precedence.
A contract that has been fully performed by both parties.
Executed Contract
A contract where separate consideration is given to the legal and illegal parts.
A divisible contract
What must contracts for the sale of goods for $500 or more be evidenced by under the Statute of Frauds?
What is an exception to the rule that contracts for personal property worth over $500 must be in writing?
When goods have been paid for, accepted, or ordered specifically for the buyer.
What happens if a contract includes a clause stating that the written terms are the entire agreement?
Oral agreements and previous written documents that contradict the final contract will not be enforceable.
To determine which contracts must be in writing to be enforceable in court.
Statute of Frauds
What is the penalty for working without a required competency license in most states?
The person cannot enforce contracts made in that line of work.
Under the Statute of Frauds, which contracts must be in writing to be enforceable? (Name at least 3)
Contracts that cannot be performed within one year, promises to answer for the debt of another, contracts for marriage, and the transfer of real property.
Why do most states regulate the maximum interest rate for lenders?
To ensure fairness for borrowers
What is the difference between formal and informal emancipation?
Formal emancipation requires court approval; informal arises from conduct.