1. The four exceptions to the parol evidence rule are
    • 1. incomplee contracts - parol evidence may be introduced to show how they were to have been made complete
    • 2. ambiguities - parol evidence may clarify the parties intent.
    • 3. fraud, illegality, or mistake - oral evidence may b introduced to establish or correct flaws.
    • 4. condition precedent not met - parol evidence may show that a seemingly valid contract is not valid.
  2. Third party beneficiaries are either
    • 1. creditor beneficiaries.
    • 2. donee beneficiaries - gift
    • 3. incidental beneficiaries - contract completion results in a benefit to a third party which was immaterial to the original parties conractual intents.
  3. When is a contract discharged?
    When all obligations under the contract terminate.
  4. A contract may be discharged by?
    • 1. performace - payment, completion of action or forbearance.
    • 2. agreement - rescission, substituion, novation, accord and satisfaction
    • 3. impossbility, death, destruction of the subject matter
  5. What are six distinctive characteristics of insurance contracts?
    • 1. conditional contract - performance is depedent on unceertain event or condition
    • 2. fortuity and the exchange of unequal amounts.
    • 3. utmost good faith
    • concealment and misrepresentation make contracts voidable.
    • 4. Adhesion
    • 5. Indemnity - restore4s a person to same financial condition.
    • 6. Nontransferable contract - insurance is a personal contract.
  6. What are the differences between warranties and representations?
    • 1. warranties are part of the contract. warranties are expressly included i the policy or invcorporated by reference
    • Representations are inducements to contract and do not need to be incoorporated by reference
    • 2. Warranties are presumed to be aterial. Insurers must prove that represntations are material.
    • 3. Warranties require strict compliance. Represntations require only substantial truth.
  7. What is a waiver?
    ait is a voluntary and intentional forfeiture of a known right.
  8. Define Declarations
    They are statments made by insurance applicants that are either representations or warranties.
  9. How can insurers protect themselves against waiver, estoppel, and election?
    • Nonwiver agreement - bilateral agreements not to waive any policy rights and/ or
    • reservation of rights notices - unilateral notices explicitly reserving all policy rights. Theose two devices allow insurers to investigate losses without those investigations imposing coverage under the doctrines of waiver, estopple. or election.
  10. Define the four delivery terms in sales contracts.
    • 1. FOB - free on board place of shipment - seller delivers the goods to the shipper at seller's risk and expense (usually at the seller's premises.)
    • 2. FOB - place of destination - seller must transport the goods to their final destination at hsi own risk and expense.
    • 3. FAS - free along side vessel. - seller must deliver the goods to the shipping vessel at seller's own risk and expense.
    • 4. FOB vessel, the seller must load the goods on the vessel at his own risk and expense
  11. What is the fair credit reporting act?
    It requires consumer reporting agancies to exercise fairness impartiality and respect for consumers rights. Credit reports may be furntinshed only to a court, to the subject of the report, or to a person who uses it for a legitimate business need.
  12. What a a deed?
    A written transfrer of real estate ownership rights
  13. What are the tort rules for determing proximate cause?
    • 1. the "but for" rule - no injury but for the defendant's act.
    • 2. the substantial factor rule - if the acts of two or more parties were subjstantial factors
    • 3. the forseeability rule - if hinsight shows that the paltiffs inury was a resonable probable consequence of the defendent's actions.
    • 4. the proof of defendant's responsiblity rule.- the defendant was the person who caused the harm.
  14. How is negligence imputed?
    • Vicarious liability - iposes reponsibility on one person for the tors of another.
    • Negligent intrustment
    • Negligent supervision
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