A failure by the settlor to name a trustee renders a trust invalid.
A seller cannot be held liable for the breach of an express warranty if the seller honestly
believed that the warranted statement was true.
Nonprofit corporations are exempt from involuntary bankruptcy proceedings.
An easement is a right to use another’s property that belongs to the land that is
benefited.
Web site operators are free to plant “cookies” on computers with no fear of action for
breach of unauthorized access or privacy.
A buyer may reject the goods or revoke the acceptance for any defects in the goods.
The requirement of privity of contract to allow recovery in a sales contract has been
widely rejected.
A preincorporation subscription to stock is generally treated as an offer to the
corporation to buy the stock when the corporation is formed and the stock is thereafter
issued.
Fungible goods are always homogeneous.
If a buyer purchases goods on approval, the buyer’s creditors cannot reach such goods
until there is an approval.
Only direct losses from a breach of contract may be recovered by an injured party.
Hal was a merchant who deposited 2,000 barrels of olive oil in a public warehouse
operated by Welcome Warehouse. Hal was issued a warehouse receipt for the 2,000
barrels that by its terms was deliverable “to bearer.” Hal had engaged in many other
transactions with Welcome and was in arrears for quite a bit of money to Welcome. Hal
duly negotiated the warehouse receipt to Esmeralda Enterprises in payment of cash.
Hal’s financial affairs continued to deteriorate and Welcome never was paid the debt.
When Esmeralda’s agent requested the oil and offered to remit the warehouse receipt,
Welcome refused to release the oil, claiming a lien on the oil for Hal’s debt. Esmeralda
sued. Decide the case.
A payment by a debtor in the ordinary course of business, such as the payment of a
utility bill, will not be set aside by the bankruptcy trustee.
Past benefits already received by a promisor cannot be consideration for a later
promise.
A father’s oral promise to his daughter and her fiancée made in consideration of their
contemplated marriage is binding when made in the course of a serious discussion.
Destroying information stored on a computer may be a crime.
In common usage today, there is no distinction between real and personal property.