Blog

When a contract is voidable, it may be ________ or canceled.

Lake House. Harry has two houses, a house on the lake and a house in town. Rebecca wants to buy the house on the lake. Harry and Rebecca orally agree that Rebecca will buy the house on the lake for $300,000. Harry hurriedly writes out a contract providing that he would sell “his house” to Rebecca for $300,000. Harry signs the top of the document. Rebecca does not sign at all. No merger clause is included in the contract. Harry backs out of the contract, and Rebecca sues him. He tells the judge that the statute of frauds is not satisfied because he did not sign the document at the end and because Rebecca did not sign at all. He also tells the judge that, at any rate, the agreement referred to the house in town, not the house on the lake; and that under the parol evidence rule, he had the right to identify the correct house. Which of the following is true regarding Harry’s assertion that the statute of frauds is not satisfied because he did not sign the document at the end?

As a general rule, most states follow the Restatement of Contracts, which provides that contracts of an intoxicated person are void.

What does the shipping term “FOB” indicate?

There is no federal statute of frauds.

Accord and satisfaction is used when one of the parties wants to substitute a different performance for his original duty under the contract.

According to the traditional rule, if Sam, a minor, purchased a television from an electronics shop with a $100 down payment on a one-year credit contract and accidentally damaged it a week after he took it home, he could return the television to the store in its damaged condition and tell the owner he was rescinding the contract. Sam would then be entitled to the return of his $100 down payment and would owe no further obligation to the store.

If a person’s mental deficiencies have resulted in his being adjudicated insane and a guardian has been appointed for him, any contract he enters into is voidable at his election.

Third-party rights in a life insurance policy do not vest until the ________.

The Uniform Commercial Code defines a mixed sale as a contract for the sale of two or more goods.