The element of bargained-for exchange distinguishes contracts from gifts.
An executive officer of a corporation normally can conduct ordinary business
transactions without obtaining written authority from the corporation.
The term consideration refers to the legality of the subject matter of a contract.
Floramariais an elderly woman who lives with her niece Galaxy. Floramaria is depend-
ent on Galaxy for support. Galaxy advises Floramaria to “invest in Galaxys “profes-
sional gambling venture, or Galaxy will no longer support her. Floramaria liquidates her
other investments and signs a contract with Galaxy, to whom Floramaria gives the
funds. Can Floramaria set aside this contract?
Preferred stock is an equity security with preferences.
Most states do not allow automobile repair shops to hold a customers car when the
customer refuses to pay for repairs already completed.
People who keep domestic animals can be held strictly liable for any harm inflicted by
the animals.
All states laws permit minors to disaffirm contracts.
The Statute of Frauds operates as a defense to the enforcement of an oral contract for
the sale of land.
An expression of opinion will usually create a warranty.
Every act of the partner concerning partnership business and “business of the kind and
every contract signed in the partnerships name bind the partner, but not the firm.
If either the principal or the agent petitions for bankruptcy, the agency is not usually
terminated.
A partially disclosed principal is only partially liable to a third party for a contract made
by an agent.
Any breach allows the nonbreaching party to cancel the contract.
A principal or employer normally is not liable for an agents crime even if the crime was
committed within the scope of authority or employment.
A franchisor can suggest retail prices for the goods that a franchisee sells but cannot
mandate them.
For federal income tax purposes, one-member limited liability companies are not taxed.
Francesca works for GlassworksInc. Near her workstation is a conveyor belt that runs
into a large industrial oven. Some workers, including Harry, Francescas supervisor, use
the oven to heat food. One day, when the conveyor is not moving, Francesca uses the
oven to cook her lunch. As she removes the food from the oven, the conveyor comes on
and Francesca is pulled partially into the oven and suffers seriousburns. Francesca seeks
recovery under the state workers compensation law. Should she recover? Why or why
not?
Banks may not assign their loan contracts to other firms.
The United States Supreme Court can review any case decided by any of the federal
courts of appeals.