In a negotiable instrument, the promise or order to pay must be unconditional.
A court can dismiss an individual debtor’s petition if the debtor does not satisfy the
means test.
When a special endorsement is made, the instrument becomes order paper and may be
negotiated only by an endorsement and delivery.
When the holder fails to endorse order paper but does physically transfer the paper to a
third party, the transferee is considered an assignee not a holder.
The power of the states to adopt laws to protect the general welfare of the people is
called police power.
The parties may agree that the adequacy of performance under a contract is to be
determined by a third party.
Employers are required to give notice to employees that they will monitor their
employees’ e-mail.
In the partially disclosed principal situation, the agent is considered a party to the
contract.
As Courts now tend to accept an agency’s reasonable interpretation of a statute
involving a technical matter, even though it was not the only interpretation that could
have been made.
Charitable subscriptions by which individuals make pledges to finance the construction
of a college building, a church or another structure for charitable purposes are binding
to the extent that the donor should have reasonably realized that the charity was relying
on the promise in undertaking the building program.
Generally, a promise is legally enforceable even if nothing is given or received for the
promise.
Under the statute of frauds, an oral contract must be completed within one year after
performance begins.
When an oral contract is made to sell a television set for $600, payment and acceptance
of part of the purchase price avoids the bar of the statute of frauds.
An easement may be created only by deed.
If the creditor does not enforce the suretyship agreement within the time limits provided
for such contract enforcement in the surety’s jurisdiction, the obligation is forever
discharged.
In a composition of creditors, the various creditors of a single debtor mutually agree to
accept a fractional part of their claims in full satisfaction of the claims.
The government can regulate not just businesses, but also business competition and
prices.
According to the RMBCA, shareholders may, by majority vote, remove a director with
or without cause unless the articles of incorporation provide that directors may be
removed only for cause.