When a minor avoids contracts, the minor always must return the other contracting
parties to their original financial positions.
A buyer may reject the goods or revoke the acceptance for any defects in the goods.
If an order or promise is not for money, the instrument is not negotiable.
If a contract can be interpreted in two ways, one legal and the other illegal, the court
will assume that the legal meaning was intended unless the contrary is clearly indicated.
The use of agency arrangements allows a U.S. firm to avoid taxation on sales made in
its agent’s country.
Mortgages, security interests, and surety relationships are legal mechanisms created
primarily to promote stability and flexibility in trade.
Governments are generally immune from tort liability.
Rundles, Kreiger, and Larson formed a partnership to breed and show horses. Rundles
and Kreiger each contributed $25,000 to the partnership. Larson contributed four (4)
horses valued at $25,000. The partnership agreement provided that the partners would
share profits equally. When the horses failed to perform as expected, Rundles and
Kreiger decided to reduce Larson’s share of the profits. Larson claims that this decision
must be unanimous to be binding. How will the case be decided?
Negotiation of commercial paper results in lesser rights to transferees than those rights
afforded assignees of contracts under contract law.
The burden of proving the existence of a partnership will always fall on one of the
partners.