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-an agreement between two or more competent parties based on mutual promises and an exchange of things of value, to do or refrain from doing some particular thing that is neither illegal nor impossible. -agreement results in obligation or a duty that can be enforced in a court of law.

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contract

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true or false you cannot stop an oral contract once it is done

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true

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true or false most contracts are written

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false. they are oral

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true or false any oral contract can be taken to court

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true

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-"lex mercatoria" -the history of contract law is intertwined with the parallel development of Western mercantile law. -outlines the laws and the procedures followed by merchants in commercial transactions -originated among merchants themselves who needed a formalized way to deal with one another when disputes arose.

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law merchant

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an economic system that operates on the basis of competition and a free market that responds to the movement of supply and demand

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capitalism

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Church encouraged merchants to establish guilds that followed the law of the Church(provides political and social support) -provides moral framework

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canon law

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-characterizes any system of laws that is consistently applied in the same evenhanded way, no matter who the antagonists might be. -developed in festivals, marketplaces, and coastal cities in Europe

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Neutrality of the law merchant

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-apply to everyone regardless of their social status or their place of origin. -made necessary by the global nature of trade in the late Middle Ages -towns and coastal cities began to adhere to the law merchant rather than their local laws which tended to be prejudiced against foreigners

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Universality and the law merchant

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six characteristics of law merchant

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neutrality universality mutuality involvement integration evolution

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-"reciprocity" -notion that commercial arrangements always involve a process of evenhanded cooperation between parties -parties to any commercial transaction were expressly forbidden to cheat, lie, or trick on another -all commercial transactions had to be fair to each party -this principle outlawed contracts that involved outrageous prices and those that took advantage of a party's weakened position

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mutuality and the law merchant

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-those affected by the law participate in its making and its execution

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involvement and law merchant

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-"pie powder courts" -were empowered to hear cases involving commercial disputes, and since the juries were inevitably made up of merchants, the law merchant was used to adjudicate the cases

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fair courts

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heard cases that involved certain set commodities -run by mayors who were forced to learn and apply mercantile law

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staple courts

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-were tribunals set up in seaport towns to handle disputes involving maritime law, shipping contracts, contests over docking rights, collisions at sea, and the like.

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admiralty courts

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true or false a valid contract results in an obligation that can be enforced in a court of law

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true

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true or false mercantile law, the law merchant. and lex mercatoria are all different names for the same area of the law

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true

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true or false contract law is based on safeguarding people's rights

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true

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people have rights just because they are a part of social structure

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criminal law and tort law

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people adopt rights and duties as part of their contractual relationships which are entered voluntarily -multidimensional area of law -laying out not only what our rights and duties are, but also whether we have actually undertaken those duties and been given those rights

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contract law

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true or false in order for a contract to be legally binding on all parties, each element does not have to be present

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false. each element (4) must be present

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four elements of a contract

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mutual assent consideration capacity legality

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a valid offer requires that the offeror make a definite expression of the desire to enter a contract in terms that are clear and unambiguous and that are communicated to the offeree. -occurs when there has been a meeting of the minds among parties to the agreement -if this is destroyed, the relationship that results is said to be defective. -the destoyers can be fraud, misrepresentation, mistake, duress, and undue influence -first of the four elements of a contract -both of the parties know what terms of the agreement are and both willingly agree to bound by those terms.

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mutual assent

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occurs when the offeree communicates acceptance to the offeror. -the offeree agrees to be bound by the terms set up by the offeror

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acceptance

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the thing of value promised to the other party in exchange for something else of value promised by the other party. -each side must give up something, their legal detriment, and must gain something, their legal benefit -if this is unconscionable(ridiculously out of line with the nature of the contract) the court might intervene -things that might at first appear to be consideration are not: past consideration, pre-existing duties, illusory promises, and future gifts

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consideration

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the legal ability to make/enter a contract -all the parties to a contract are legally permitted to assume that the other parties possess this (this assumption is called rebuttable presumption which means that any one contract of the parties to the contract can attack or rebut that presumption) -involves minors -appears as a question in cases involving a party with a mental impairment

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capacity

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true or false minors have "extra-capacity"

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true capacity to enter or leave a contract

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true or false a person's mental impairment may also eliminate contractual capacity, but only if the party claiming the impairment can demonstrate that the impairment as so severe at the time of the contract was made that he or she could not understand the nature, the purpose, or the effect of the agreement.

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true

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parties cannot be permitted to enforce a contract that involves something that the law says cannot be done. -a contract to commit a crime or a tort would be illegal and void -some contracts are also made illegal by statutory law: usurious contracts, gambling contracts, unlicensed agreements, unconscionable agreements, and some Sunday agreements. -some are illegal based on the doctrine of public policy: obstruct justice, agreements interfering with public safety, agreements to defraud creditors, agreements to escape liability(exculpatory clauses), agreements in restraint of trade and agreements to suppress competition

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legality

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in contract law, the process of compensating an innocent party for losses that result from a breach of contract -the objective of this is to place the innocent party in as good as position as he or she would have been had the contract been performed.

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rehabilitate

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these damages are equal to the real financial loss suffered by the innocent victim.

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actual or compensatory damages

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those that are paid by the breaching party to make up for any expenses paid by the victim to prevent any additional loss

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incidental damages

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indirect damages that result because of special circumstances that exist with a particular contract

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consequential damages

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designed to punish the wrongdoer for his or he outrageous conduct.

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punitive damages

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the innocent party cannot take advantage of the breach by deliberately raising the amount of damages that the other party must pay

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duty to mitigate

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are those that are imposed by the courts when the payment of money would not compensate for the loss of the suffered by the innocent party.

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equitable remedies

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a court order issued by a court directing a party to refrain from some activity that represents a breach of contract -can be temporary or permanent -issued as a way to delay further activity until the court can decide whether to make the injunction permanent

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injunction

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Uniform Commercial Code, contracts and other agreements, contracts and privity, contracts and agency law, and contracts and the Statue of Frauds

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multidimensional principles of contract law

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a model set of laws designed to govern almost all commercial transactions

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Uniform commercial code

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all parties must have a legally recognized interest in the subject of the contract if they are bound by it

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privity

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in a life insurance contract, the parties who are names as those who will receive payment on the death of the insured

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intended beneficiaries

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a law that outlines those contracts that must be in writing to be enforceable in court.

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Statute of Frauds

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tells judges that their primary objective in the interpretation of a written contract is to uncover the goals that the parties had when they entered the contract in the first place. -the goal of this rule is to encourage those parties who actually put pen to paper (or fingers to a keyboard) to be as clear and straightforward as humanly possibly

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standard construction rule

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true or false the four elements are mutual assent, consideration, capacity, and legality

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true

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true or false the courts say that the objective of rehabilitation is to place the innocent party in as good a position as he or she would have been had the contract been performed

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true

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true or false all contracts must be in writing to be enforced in a court of law

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false

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contractual characteristics fall into five different categories

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(valid, void, voidable, and unenforceable) (unilateral and bilateral) (express and implied) (informal and formal) (executory and executed)

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contract that is legally binding and fully enforceable by the court

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valid contract

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contract that has no legal effect whatsoever -ex: a contract to perform an illegal act

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void contract

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contract that may be avoided or canceled by one of the parties -valid until voided -ex. contracts made by minors or induced by fraud or misrepresentation

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voidable contract

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contract that cannot be upheld by a court of law -may have all elements of a complete contract, but is still unenforceable

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unenforceable contract

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an agreement in which one party makes a promise to do something in return for an act of some sort -ex. a person who promises to pay $5 to the finder of a lost driver's license does not expect a promise in return. rather, the person expects the return of the lost license

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unilateral contract

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is a contract in which both parties make promises -promise for a promise -cannot revoke contract

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bilateral contract

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occurs when one of the two parties fails to keep the promise

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breach of contract

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requires some sort of written or spoken expression indicating a desire to enter the contractual relationship

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express contract

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created by the actions or gestures of the parties involved in the transaction

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implied contract

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a contract implied by the direct or indirect acts of the parties -a person doesn't say anything to revoke a contract -BP example in class -ex. pumping gas into a car at a self-service gas station

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implied-in-fact contract

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because the parties to a contract enter that contract by an exercise of free will -the meaning of one's actions is determined by the impression those actions would make upon any reasonable person who might have witnessed them, not by a party's self-serving claim of what was meant or intended by the actions -as a reasonable person, does it look like a contract?

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objective concept rule

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-imposed by a court when someone is unjustly enriched -used when a contract cannot be enforced or there is no actual written, oral, or implied-in-fact agreement -applying reasons of justice and fairness, a court may obligate one who has unfairly benefited at the innocent expense of another -also called "quasi-contract"

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implied-in-law contract

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contracts that follow formalities prescribed by statute or common law

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formal contracts

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any oral or written contract that is not under seal or is not a contract of record -also known as a simple contract -no requirements as to language, form, or construction -comprises obligations entered into parties by whose promises are expresses in the simplest and usually most ordinary, nonlegal language

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informal contract

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-has to be written -must be signed, witnessed, and placed under the seal of the parties -must be delivered

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formal contracts

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mark or an impression placed on a written contract indicating that the instrument was executed and accepted in a formal manner -is usually indicated by the addition of the word "seal" or the letters "LS" for locus sigilli (place of the seal) following a party's signature

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seal

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type of formal contract -confirmed by the court with an accompanying judgment issued in favor of one of the parties -the judgment is recorded, giving the successful litigant the right to demand satisfaction of the judgment -court created -does not have all elements of a valid contract, but it is enforced for public policy reasons.

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contract of record

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a contract that has not yet been fully performed by parties -still in process

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executory contract

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-nothing is been done in the contract

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completely executory

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-contract is partially done

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partly executory

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-when a contract's terms have been completely and satisfactorily carried out by both parties

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executed contract

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true or false a void contract is one that can be avoided by one or more of the parties

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false

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true or false a formal contract is also known as a simple contract

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false

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true or false a contract that has not yet been fully performed by the parties is called an executory contract

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true

question

a proposal freely made by one party to another indicating a willingness to enter a contract

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offer

question

person who makes an offer

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offeror

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the person to whom the offer is made is

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offeree

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-determined in the mind for offeree -the offeror's words must give the offeree assurance that a binding agreement is intended

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serious intent

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the terms of an offer must be clear to remove any doubt about the contractual intentions of the offeror. -most courts require reasonable rather than absolute definiteness. -need the price and what exactly you are selling

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clear and reasonably definite terms

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does not include a final price; rather, the contract price is determined by the cost of labor and materials, plus an agreed-to percentage or dollar makeup

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cost-plus contract

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an agreement in which one party agrees to buy all of the goods it needs from the second party -must be carefully worded -purchase amt. of something required for my business but I don't know the quantity.

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requirement contracts

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an agreement in which one party consents to sell to a second party all of the goods that party makes in a given period of time. -know the price, do not know the quantity

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output contracts

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is one in which prices are determined by reference to the market price of the goods as of a specified date. -only know the quantity you don't know the price

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current market price

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-offer may be communicated orally, by mail, by fax, email, text, or other capable means. -may be implied

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communication to the offeree

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one that is made through the public media but is intended for only one person whose identity or address is unknown to the offeror -ex.: an advertisement in a lost and found notice on an electronic bulletin board

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public offer

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-not offers -an announcement published to reach many persons for the purpose of creating interest and attracting responses. -newspaper and magazine advertisements, radio and tv commercials, store window displays, price tags on merchandise, for rent signs, and prices in catalog fall within this definition -no binding agreement develops until a responding party makes an offer that the advertiser accepts

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invitations to trade

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for real property. the price that the seller asks initially when the property is placed on the market. -the price is an invitation to the buyer to make an offer

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list price

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a sale that is open to the public, during which potential buyers compete for the right to purchase certain items by placing higher and higher bids until they reach the highest bid and the auctioneer accepts on behalf of the seller

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auction

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in an auction, the original property owner, the seller, is the offeror and the bidder is the offeree

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auction without reserve

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if the auction has not been so designated, which means that the bidders are the offerors and the seller is the offeree

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auction with reserve

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is a deliberately deceptive practice that entices buyers into a place of business when the seller actually has no intention of selling the item at the price stated in the advertisement. -has been outlawed by the Federal Trade Commission

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bait and switch confidence game

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true or false the person who freely makes an offer is called an offeree

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false

question

true or false an offer is valid only if it has serious intent, clear and reasonably definite terms, and communication to the offeree

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true

question

true or false no valid offer will exist when terms are indefinite, inadequate, vague, or confusing

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true

question

the offeree must communicate acceptance to the offeror. -consist of a promise by one party in return for a promise by the other. -until the offeree communicates a willingness to be bound by a promise, there is no valid acceptance

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bilateral contracts

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the offeree chooses any method of acceptance, unless the offer states that the acceptance must be made in a particular manner. -ex.: reply by fax or reply by email

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express acceptance

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acceptance is complete and effective when offeror hears the words of acceptance

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face to face or telephone communication

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acceptance is complete when text message is sent, if offeror has asked for a text response. if not, the acceptance is complete when sent, only if a text message is faster then the requested method

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text messages

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acceptance is complete and effective when given by that same medium (eg. mailed offer is accepted when acceptance is dropped in the mail)

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authorized means of communication

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acceptance is complete and effective when it actually reaches oferror

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acceptance improperly dispatched

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the acceptance must not change any of the terms stated in the offer -known as minor image rule

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unequivocal

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the terms stated in the acceptance must exactly "mirror" the terms in the offer. -if the acceptance changes or qualifies the terms in the offer, it is not an acceptance.

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mirror image rule

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- is a response to an offer in which the terms of the original offer are changed. no agreement is reached unless the counteroffer is accepted by the original offeror

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counteroffer

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comes about when an offeree expresses or implies a refusal to accept an offer. -terminates an offer -usually achieved when communicated by offeree

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rejection

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is the calling back of the offer by the offeror -with an exception of the option contract and the firm offer, an offer may be revoked any time before it is accepted. -the offeror has this right

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revocation

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an agreement that binds an offeror to a promise to hold open an offer for a predetermined or a reasonable length of time -in return, the offeror receives money or something else of value from the offeree -removes the possibility of revocation through death or insanity of the offeror

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option contract

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is created when a merchant agrees in writing to hold an offer open -no consideration is need to hold the offer open -may be made for a specified amount of time -if no time limit is specified, then the offer may remain open for a reasonable amount of time -upper limit is three months -only involves sale of goods because of the UCC

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firm offer

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is a contract that permits a party to lease real property while at the same time holding an option to purchase that property. -involves two separate contracts: lease contract and the option contract -lease contract will detail the terms of the lease, whereas the option contract will outline the terms under which the renter can exercise the option to purchase the property

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lease option

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true or false an acceptance means that the offeree agrees to be bound by the terms set up by the offeror

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true

question

true or false according to the Postal Reorganization Act, the recipient of unordered merchandise through the mail may treat such goods as gifts

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true

question

true or false a rejection comes about when an offeree expresses or implies a refusal to accept an offer

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true

question

true or false the uniform electronic transactions act (UETA) was passes by Congress as a federal law

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false

question

true or false the electronic signatures in global and national commerce act was written by the national conference of commissioners on uniform state laws

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false

question

true or false the process of accepting an online offer is often referred to as a "click-on" agreement

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true

question

five forces that destroy mutual assent.

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fraud misrepresentation mistake duress undue influence

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more serious than misrepresentation -deliberate -difficult to prove

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fraud

question

an important fact, a fact of substance

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material fact

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occurs when one party tricks another party into a contract by lying to the innocent party about the actual nature of the contract

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fraud in the inception

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occurs when one party tricks another into a contract by lying about the terms of the agreement to get the innocent party to enter the contract under false pretenses.

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fraud in the inducement

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consist of the persuasive words and exaggerated claims made by salespeople to induce a customer to buy their product -as long as the comments are reserved to opinion and do not misstate facts, they cannot be considered fraud in a lawsuit, even if they turn out to be grossly wrong.

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sales puffery

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occurs when one party actually makes a false statement intended to deceive the other party in a contract.

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active fraud

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occurs when one party does not say something about certain facts that he or she is under an obligation to reveal

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passive fraud, concealment, nondisclosure

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is a relationship based on trust. ex. between attorneys and clients, guardians and wards, trustees and beneficiaries, and boards of directors and corporations.

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fiduciary relationship

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occurs when a false statement is innocently made with no intent to deceive -makes an existing agreement voidable and the complaining party may demand rescission

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misrepresentation

question

both parties are returned to their original positions, before they entered into a contract

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rescission

question

a mistake made by only one of the contracting parties is this mistake and does not offer sufficient grounds for rescission or renegotiation.

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unilateral mistake

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when both parties are mistaken -may permit rescission by either the offeror or the offeree

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bilateral mistake/mutual mistake

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may be viewed as an action by one party that forces another party to do what need not otherwise be done -forces a person into a contract through the use of physical, emotional, or economic threats

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duress

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involves either violence or the threat of violence against an individual or against that person's family, household, or property

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physical duress

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arises from acts or threats that would create emotional distress in the one on whom they are inflicted. -necessary that the action threatened be either illegal or illicit.

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emotional duress

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consists of threats of a business nature that force another party without real consent to enter a commercial agreement

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economic duress/business compulsion

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occurs when the dominant party in a special relationship uses excessive pressure to convince the weaker party to enter a contract that greatly benefits the dominant party -person has to benefit from it -a relationship must be present

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undue influence

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true or false misrepresentations is a false statement made with no intent to deceive

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true

question

true or false mutual mistake is grounds for rescinding a contract

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true

question

true or false economic duress is also known as business compulsion

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true

question

in contract law, the mutual promise to exchange benefits and detriments between parties

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consideration

question

can be any of the following: 1.doing something (or promising to do something) that one has a legal right not to do 2. giving up something (or promising to give up something) that one has a legal right to keep. 3 refraining from doing something (or promising not to do something) that one has a legal right to do

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legal detriment

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the act of refraining from doing ( or promising not to do) something that a person has a legal right to do

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forbearance

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an agreement involves this when: 1. a promise made in exchange for another promise 2. a promise is made in exchange of an act 3. a promise is made for forbearance of an act

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bargained for exchange

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true or false the fact that each party has received a benefit and suffered a detriment means that the consideration has legal value

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false

question

true or false the legal term used to designate the gain that each party experiences is that party's legal benefit

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true

question

true or false consideration does not require that the benefits and sacrifices promised between the parties be legal

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true

question

a promise not to sue

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release

question

true or false today contractual parties never find it beneficial to enter barter agreements

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false

question

true or false if a party promises not sue another party, and it is later discovered that the first party never really had the right to sue, the original promise not to sue is invalid in every state, and the consideration must be returned.

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false

question

true or false even though charities depend on the solicitation of contributions, the courts have refused to enforce charitable pledges

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false

question

an amount on which the parties never reached mutual agreement

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disputed amount

question

if a creditor accepts as full payment an amount that is less than the amount due, the dispute is settled by this..

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accord and satisfaction

question

is the implied or expressed acceptance of less than what has been billed the debtor

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accord

question

the agreed-to-settlement contained in the accord

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satisfaction

question

an amount on which the parties have mutually agreed.

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undisputed amount

question

true or false a disputed amount is one on which the parties never reached mutual agreement

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true

question

true or false if a creditor accepts as full payment an amount that is less than the amount due, the dispute has been settled by promissory estoppel.

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false

question

true or false an undisputed amount is one on which the parties have mutually agreed

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true

question

limit the time within which a party is allowed to bring suit

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statutes of limitations

question

denies rights to complaining parties that are shown to be the cause of their own injury

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estoppel

question

is a legal doctrine that restricts a party from denying that a promise was made under certain conditions, even though consideration has not been exchanged to bind an agreement.

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promissory estoppel

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is the giving consideration to support an offeror's promise to hold open an offer for a stated or a reasonable length of time.

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option

question

must be signed by the offeror, and the time allowed for acceptance may not exceed three months.

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firm offer/irrevocable offer

question

a promise to do something that one is already obligated to do by law or by some other promise or agreement cannot be made consideration in a new contract -applies to policemen, firefighters, and other public servants

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preexisting duties

question

a promise to give another something of value in return for goods or services rendered and delivered in the past, without exception or reward -only when goods or services are provided as the result of bargained-for present or future promises is an agreement enforceable.

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past consideration

question

is a promise that seems genuine but that on close examination actually fails to obligate the promissor to do anything

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illusory promise

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true or false an option is the giving of consideration to support an offeror's promise to hold an offer open for a stated length of time

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true

question

true or false although illusory promises provide the mutuality of promises required in establishing consideration, the courts will not enforce them due to the doctrine of unconscionability

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false

question

true or false the promise of a gift to be given at some future time or in a will is completely enforceable even if no consideration is given for the promise.

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false

question

an agreement that violates criminal law or tort law, a statute, and or public policy as established by the court. -the law will aid neither party involved in an illegal agreement.

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illegal agreement

question

a defending party has the right to attack that presumption to rescind a contract.

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rebuttable presumption

question

in contract law, to indicate by a statement or act an intent not to live up to the terms of the contract

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disaffirm

question

no longer under the control of their parents

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emancipated

question

in contract law, the condition that exists when a minor has left home and given up all rights to parental support

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abandoned

question

goods and services that are essential to a minor's health and welfare -can include clothing, food, shelter, medical and dental services, tools and equipment needed for the minor to carry out his or her business, and even, in some cases, educational expenses.

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necessaries

question

an approval of a contract made by a minor after reaching maturity. -the willingness to abide by contractual obligations

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ratification or affirmance

question

true or false executory contracts, those which have not been fully performed by both parties, may be repudiated by a minor at any time.

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true

question

true or false ratification is the willingness to abide by contractual obligations

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true

question

true or false necessaries are the same for all persons

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false

question

true or false for a contract to be voidable by a person with a mental impairment, the mental problem must exist at the time the contract was made

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true

question

true or false a person declared to be insane by competent legal authority cannot be denied the right to enter contracts

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false

question

true or false a contract made by a person who is intoxicated is completely void

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false

question

the illegal practice of charging more than the amount of interest allowed by law

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usury

question

state statutes and local ordinances that regulate the making and performing of contracts on Sunday are called....because one of the first laws banning Sunday or Sabbath contracts was written on blue paper.

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blue laws

question

the practice in a state of eliminating uniform statewide laws regulating Sunday activities and allowing the local counties, cities, towns, and villages to adopt their own special Sunday ordinances.

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local option

question

the general legal principle that says no one should be allowed to do anything that tends to injure the public at large.

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public policy

question

a clause that says one of the parties to a contract, generally the one who wrote the contract, is not liable for any economic loss or physical injury, even if that party caused the loss or injury.

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exculpatory agreement

question

a promise by an employee in an employment contract not to work for anyone else in the same field of employment for a specified time period within a particular geographical area.

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restrictive covenants

question

limits a worker's employment options after leaving his or her present job. -an employee promises not to work for a competitor in the same field for a specified time period and within a specified geographical area after leaving the current job.

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restrictive employment covenant or noncompete agreement

question

requires employees to promise that, should they leave their present place of employment, they will not reveal any confidential trade secrets that they might learn while at their current job.

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nondisclosure agreement

question

true or false the illegal practice of charging more than the amount of interest allowed by law is called usury

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true

question

true or false if a license is required simply to raise revenue, the lack of a license will make a contract void

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false

question

true or false a restrictive employment covenant limits a worker's employment options after leaving his or her present job.

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true

question

persons who agree to commit criminal acts for a promised consideration are involved in what criminal law defines as... -agreements that do not violate criminal laws may still be invalid

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conspiracy

question

in equal fault -when both parties to an illegal agreement are equally wrong in the knowledge of the operation and effect of their contract -the court will give no aid to either party in an action against the other and will award no damages to either.

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in pari delicto

question

true or false persons who agree to commit criminal acts for a promised consideration are involved in a conspiracy

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true

question

true or false when both parties to an illegal agreement are equally wrong in the knowledge of the operation and effect their contract, they are said to be in pari delicto

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true

question

true or false if the legal part of a contract can be removed from the illegal part, without changing the essential nature of the contract, the court will enforce both part.

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false

question

an exception to the rule that contracts for the sale of land must be in writing. -it applies when a person relies on an owner's oral promise to sell real estate and then makes improvements on the property or changes his or her position in an important way.

answer

part performance or equitable estoppel

question

is a person who is named in a will to oversee the distribution of the estate of a deceased according to the provisions outlined in the will.

answer

executor

question

is a person named by the court to do the work of an executor if none is named in the will or if the executor cannot or will not perform those duties.

answer

administrator

question

a promise to pay another's bills or to settle wrongful acts if that party does not settle them personally.

answer

guaranty of payment

question

the promisor

answer

guarantor

question

in a commercial setting, the guarantor is referred to as a...

answer

cosigner

question

the person to whom the promise is made

answer

obligee

question

the person who owes the original debt

answer

obligor

question

involves to people who are planning marriage and who agree to change the property rights they possess by law in a marriage

answer

prenuptial agreement, premarriage agreement, antenuptial agreement

question

true or false a contract is said to be outside the statute if it must be in writing to show that the two objectives of the statute of frauds have been met

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false

question

true or false an administrator is a person who is names in a will to oversee the distribution of the estate of a deceased person according to the provisions outlined in the will.

answer

false

question

true or false agreements made in consideration of marriage must be in writing to be enforceable

answer

true

question

evidence of oral statements made before signing a written agreement is usually not admissible in court to change or contradict the terms of a written agreement -makes sure people read the agreement -anything that was said before the contract was signed is not included or allowed in court

answer

parol evidence rule

question

is an act or promise that must take place or be fulfilled before the other party is obligated to perform his or her part of the agreement

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condition precedent

question

the courts generally accept into evidence only the original of a writing, not a copy.

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best evidence rule

question

provides that when a party appoints an agent to negotiate an agreement that must be in writing, the appointment of the agent must also be in writing.

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equal dignities rule

question

true or false whenever an ambiguous term is found in a preprinted contract, the ambiguity is interpreted in favor of the party who wrote the contract

answer

false

question

true or false the principal objective is the main goal that the parties hope to accomplish by entering an agreement

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true

question

true or false parol evidence is another term for written evidence

answer

false

question

true or false written agreements must always be signed by both parties to a contract

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false

question

true or false facsimile signatures are not acceptable in any state

answer

false

question

true or false a notary is required by law to read and understand all documents that he or she has witnessed

answer

false

question

true or false the e-sign act is a model act designed to deal with problems associated with cyber-commerce

answer

false

question

true or false the uniform electronic transactions act was by congress to deal with the legality of electronic transactions

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false

question

true or false the ucita is not in line with any of the provisions of the e-sign act or the ueta

answer

false

question

a person who may in some way be affected by a contract but who is not one of the contracting parties

answer

third party

question

a third party is also know as this -is at times given benefits from a contract made between two or more other parties

answer

outside party

question

a third party receiving benefits from a contract made by others

answer

third party beneficiary

question

a third party receiving benefits from a contract made between two parties. also, the person named in an insurance policy to receive benefits paid by the insurer in event of a claim

answer

beneficiary

question

a beneficiary in whose favor a contract is made

answer

intended beneficiary

question

is an outside third party to whom one or both contracting parties owe a continuing debt of obligation arising from a contract. -obligation results from the failure of the contracting party or parties to pay for goods and services rendered by the third party at some time in the past

answer

creditor beneficiaries

question

a third party who provides no consideration for the benefits received and who owes the contracting parties no legal duty

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donee beneficiary

question

is an outside party for whose benefit a contract was not made but who would substantially benefit if the agreement were performed according to its terms and conditions.

answer

incidental beneficiaries

question

true or false a third party who provides no consideration and owes no legal duty to the contracting parties is a donee beneficiary

answer

true

question

true or false the principle of privity stopped many judges from establishing third party rights

answer

true

question

true or false incidental and intended beneficiaries have the same rights

answer

false

question

is a transfer of a contract right -consideration is not important

answer

assignment

question

is a transfer of a contract duty

answer

delegation

question

the party who assigns rights or delegates duties

answer

assignor

question

the outside third party to whom the assignment is made

answer

asignee

question

-remaining party to the original agreement -in contract law, the party who is obligated to deliver on a promise or to undertake an act

answer

obligor

question

is a transfer of property with the intent to defraud creditors

answer

fraudulent conveyance

question

true or false a delegation is the transfer of a contractual right

answer

false

question

true or false the equal dignities axiom has no application in the law of assignment

answer

false

question

true or false it is the responsibility of the assignor to give notice of the assignment to the obligor

answer

false

question

is a promise, statement, or other representation that a thing has certain qualities. -an insured's promise to abide by restrictions, especially those written into an insurance policy

answer

warranty

question

the substitution, by mutual agreement, of another party for one of the original parties to a contract.

answer

novation

question

true or false the phrase "assignment of a contract" means the same thing as the phrase "assignment of rights"

answer

false

question

true or false personal and professional duties are just as transferable as all other duties

answer

false

question

true or false novations have been outlawed under the Restatement of Contracts

answer

false

question

the parties do what they agreed to do under the terms of a contract

answer

performance

question

the time that may fairly, properly, and conveniently be required to do the task that is to be done, considering attending circumstances

answer

reasonable time

question

exists when either personal taste or objective standards have determined that the contracting parties have performed their contractual duties according to the agreement. -expressed or implied -"money back if not entirely satisfied."

answer

satisfactory performance

question

-In contract law, the situation that exists when both parties to a contract have fully accomplished every term, condition, and promise to which they agreed. -occurs when all the parties fully accomplish every term, condition, and promise to which they agreed

answer

complete performance

question

occurs when a party, in good faith, executes all promised terms and conditions with the exception of minor details that do not affect the real intent of their agreement.

answer

substantial performance

question

condition that requires the performance of certain acts or promises before the other party is obligated to pay money or provide any other agreed to consideration.

answer

condition precedent

question

a condition that requires both parties to perform at the same time

answer

condition concurrent

question

is a condition in which the parties agree that the contract will be terminated when a prescribed event occurs or does not occur

answer

condition subsequent

question

means to offer to do what one has agreed to do under the terms of the contract

answer

tender of performance

question

an offer by the buyer of goods to turn the money over to the seller

answer

tender of payment

question

true or false very few contracts are discharged by performance

answer

false

question

true or false a condition precedent is a condition that requires the performance of certain actions before the other party to the contract is obligated

answer

true

question

true or false tender of performance means to offer to do what one has agreed to do under the terms of the contract

answer

true

question

failing to fulfill or accomplish a promise, contract, or obligation according to its terms.

answer

nonperformance

question

a condition in which both parties to a contract agree to rescind the contract and return to the other any consideration already received or pay for any services or materials already rendered.

answer

mutual rescission

question

is a document expressing the intent of a creditor to release a debtor from obligations on an existing and valid debt.

answer

general release

question

releases a party from a contractual obligation when performing the obligations would be thoroughly impractical and senseless.

answer

frustration-of-purpose doctrine

question

the courts may excuse the nonperformance of one party to a contract because an unforeseen and very severe hardship has risen that would place an enormous hardship on that party. -party can still perform the contract

answer

commercial impracticability

question

occurs when a party to a contract either expresses or clearly implies an intention not to perform the contract, even before being required to act. -deliberate refusal

answer

anticipatory breach

question

stopping performance once it has begun

answer

abandonment of contractual obligations

question

true or false a general release is a document expressing the intent of a creditor to release a debtor from the obligations of an existing and valid debt

answer

true

question

true or false with commercial impracticability, the purpose of a contract is undermined by an unforeseen event

answer

false

question

true or false stopping a performance once it has begun is called abandonment of contractual obligations

answer

true

question

are the sum of money equal to the real financial loss suffered by the injured party -because they are intended to compensate the injured party, actual damages are called...

answer

actual damages also called compensatory damages

question

cover any expenses paid out by the innocent party to prevent further loss.

answer

incidental damages

question

damages in excess of actual losses suffered by the plaintiff awarded as a measure of punishment for the defendant's wrongful acts -defendant is abusive and dishonest

answer

punitive damages

question

token damages awarded to parties who have experienced an injury to their legal rights by no actual loss

answer

nominal damages

question

damages agreed to in the initial contract

answer

liquidated damages

question

courts do not allow these damages -are computed on losses that have not actually been suffered and that cannot be proved; they are damages based entirely on an expectation of losses that might be suffered from a breach.

answer

speculated damages

question

true or false actual damages are also called compensatory damages

answer

true

question

true or false punitive damages cover any expenses paid out by the innocent party to prevent further loss

answer

false

question

true or false the courts order specific performance only when the subject matter of a contract is unique or rare

answer

true

question

is an agreement that I created by having a party click on a box on the computer screen that states he or she agrees to be bound by the terms of the contract.

answer

click on acceptance or click on agreement

question

makes certain that commercial cyber-documents are given the same credence as their paper counterparts. -provides that cyber-contracts that are entered into over the Internet or via email will be valid, provided that the parties to the e-contract have agreed that electronic signatures will be used

answer

E-sign act

question

to ensure that cyber-contracts are given the same legal effects as their paper equivalents.

answer

Uniform electronic transactions act (UETA)

question

unified, streamlined, and refined the legal principles regarding such diverse areas as reverse engineering, consumer protection, shrinkwrap licenses, fair use, and consumer warranties. -extremely controversial bc groups see it as increasing the rights and protections of software manufacturers rather than those of consumers

answer

Uniform computer information transactions act (UCITA)

Business Law Ch. 7-12 – Flashcards

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