A party who substantially performs his or her duties under a contract can enforce the
contract against the other party.
An express contract need not be in writing.
One of the requirements to be a holder in due course is that the holder must have taken
the negotiable instrument in good faith.
Hackers often commit cyber theft.
A life insurance contract involves an intended beneficiary.
Sally and Tom decide to go into business, selling discounted merchandise through their
Web site “e-Buy.” They sign a partnership agreement that requires Sally to contribute
$12,000 and Tom to contribute $8,000 in capital to start the firm. The agreement says
nothing about the management of the firm or a division of profits. Without Sally’s
knowledge, Tom tells United Computer Products, Inc., that he represents the firm and
signs a contract with United to buy hard drives for resale on e-Buy. In the first year,
e-Buy makes a profit of $50,000. What are the partners’ rights with respect to the
management of the firm? Is the partnership bound to the contract with United? Do the
partners split the first year’s profits? If so, how much is each entitled to?
An employer can refuse to turn over a debtor’s wages.
A sale of all of a corporation’s assets requires the approval of its shareholders.
An agency relationship must be based on some affirmative indication that the agent
agrees to act for principal and the principal agrees to have the agent so act.
Parties are NOT free to bargain as they wish.
To be legally sufficient, consideration must include something of economic value.
If a buyer repudiates a contract, the seller cannot recover damages.
An artisan’s lien is effective only if a creditor has possession of the property.
The Consumer Product Safety Commission can ban a product that it believes poses an
“unreasonable risk” to consumers.
An innocent party can sometimes enforce a fraudulent contract.
A tenant’s transfer of his or her entire interest in the leased property is an assignment.
A person who transfers an instrument for consideration makes certain warranties to the
transferee.