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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.
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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.
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When is a contract discharged?
When all obligations under the contract terminate.
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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
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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.
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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.
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What is a waiver?
ait is a voluntary and intentional forfeiture of a known right.
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Define Declarations
They are statments made by insurance applicants that are either representations or warranties.
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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.
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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
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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.
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What a a deed?
A written transfrer of real estate ownership rights
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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.
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How is negligence imputed?
- Vicarious liability - iposes reponsibility on one person for the tors of another.
- Negligent intrustment
- Negligent supervision
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