Business law quiz 2 contract notes – Flashcards
Unlock all answers in this set
Unlock answersquestion
Contract
answer
a legally enforceable agreement.
question
Breach of contract
answer
failure to perform contractual obligations.
question
void
answer
there is no legal effect i.e. the contract is no longer enforceable or binding.
question
Unilateral contract
answer
or one-sided, contract, one party, known as the offeror, makes a promise in exchange for an act (or abstention from acting) by another party, known as the offeree. If the offeree acts on the offeror's promise, the offeror is legally obligated to fulfill the contract, but an offeree cannot be forced to act (or not act), because no return promise has been made to the offeror. After an offeree has performed, only one enforceable promise exists, that of the offeror.
question
contract not to compete
answer
common provision in a contract for sale of a business in which the seller agrees not to compete in the same business for a period of years or in the geographic area.
question
contract to restrain trade
answer
unreasonable restraints of trade are illegal per se and interfere with free competition in business and commercial transactions. Such restraint tends to restrict production, affect prices, or otherwise control the market to the detriment of purchasers or consumers of goods and services.
question
unfair competitive practices
answer
Unjust and often illegal attempt to gain unfair competitive advantage through false, fraudulent, or unethical commercial conduct. Examples include below-cost selling, counterfeiting or imitation, dumping, misleading advertising, rumor mongering, trademark or trade secret infringement.
question
contract to fix retail price
answer
an agreement between participants on the same side in a ... manufacturers and retailers may conspire to sell at a common "retail" price
question
mal practice
answer
improper, illegal, or negligent professional activity or treatment, especially by a medical practitioner, lawyer, or public official.
question
3rd party beneficairary
answer
person not party to contract but whom parities intended to benefit
question
Delegation
answer
transfer of duties.
question
Joint contract
answer
One in which the contractors are jointly bound to perform the promise or obligation therein contained, or entitled to receive the benefit of such promise or obligation.
question
Several contract
answer
a contract that is actually composed of several separate contracts concluded between the same parties, so that failing (breaching) one part of such a 'severable' contract does not breach the whole contract. Therefore, the other party must still honor the other subparts and cannot cancel the whole agreement. A severable contract generally must contain a "severability clause" that allows certain clauses and aspects of the contract to be "severed" without affecting the validity of the rest of the contract.
question
Join and several contract
answer
Two or more parties to a contract who promise to the same promisee that they will give the same performance are regarded as binding themselves jointly, severally, or jointly and severally. Promises impose joint and several liability when the promisors promise both as a unit and individually to pay or perform according to the terms of the contract.
question
Usary
answer
Charging higher rate of interest than the law allows.
question
Duress
answer
a wrongful act or threat by one party that compels another party to perform some act, such as the signing of a contract, which he or she would not have done voluntarily. As a result, there is no true meeting of minds of the parties and, therefore, there is no legally enforceable contract. Blackmail, threats of physical violence, or threats to institute legal proceedings in an abusive manner can be considered this
question
Fraud
answer
Inducing another to contract as a result of an intenionaly or recklyssly false statement of a material fact.
question
Offerer
answer
one that makes an offer or an offering
question
Offeree
answer
one to whom an offer is made
question
Excuted contract
answer
A completed contract
question
Excrucatory contract
answer
A contract that has yet to be complted or is in the process to be completed
question
unjust enrichment
answer
One party benefiting unfairly at another's expense
question
unenforceable contract
answer
Agreement that is not currently binding
question
void contract
answer
A contract imposes no legal rights or obligations upon the parties and is not enforceable by a court. It is, in effect, no contract at all.
question
voidable contract
answer
a legally enforceable agreement, but it may be treated as never having been binding on a party who was suffering from some legal disability or who was a victim of fraud at the time of its execution. The contract is not void unless or until the party chooses to treat it as such by opposing its enforcement. It may be ratified either expressly or impliedly by the party who has the right to avoid it
question
Statute of limitations
answer
is a time limit in which a person has to file a claim
question
undo influence
answer
Person in a special relationship causes another's action contrary to free will.
question
passive fraud
answer
Failure to disclose information there is a duty to do so, this is done intentionaly
question
active fraud
answer
Party engages in action that causes the fraud
question
unilateral mistake
answer
involves a promise that is made by only one party. The offeror (i.e., a person who makes a proposal) promises to do a certain thing if the offeree performs a requested act that he or she knows is the basis of a legally enforceable contract.
question
mutual mistake
answer
mistake by both parties to a contract
question
Voluntary subscription
answer
A subscription or duty that is done by choice
question
Adequacy of consideration
answer
The price stipulation within a contract that establishes equivalence in the exchange of value in the form of money, goods or services. Any exchange of value that is deemed not to be equivalent could render the contract unenforceable.
question
Can you disaffirm a contract
answer
Yes if they are a minor
question
Are minors able to make a contract
answer
Yes
question
It doesn't
answer
Does inquiry alter or reject an offer
question
What is the mailbox rule?
answer
which is the default rule under contract law for determining the time at which an offer is accepted, states that an offer is considered accepted at the time that the acceptance is mailed.
question
Implied contract
answer
imposition of rights and obligations by law without a contract
question
expressed contract
answer
the parties state the terms, either orally or in writing, at the time of its formation. There is a definite written or oral offer that is accepted by the offeree (i.e., the person to whom the offer is made) in a manner that explicitly demonstrates consent to its terms.
question
simple contract
answer
a contract made orally or in writing, rather than a contract made under seal. Theses contracts require consideration to be valid, but these contracts may be implied from the conduct of parties bound by the contract.
question
Yes
answer
oral contract is it enforceable?
question
negotiable instrument
answer
A document of payment such as check or bank notes
question
Agreement
answer
any understanding or arrangement reached between two or more parties
question
Yes
answer
Is a contract legally enforceable
question
Acceptance
answer
Assent to an offer resulting a contract. This must be communicated to the offeror , but no particular procedure is required or necessary.
question
Statute of Frauds
answer
enacted by the English Parliament in 1677 and has since been the law in both England and in the United States in varying forms. It requires that certain types of contracts be in writing.
question
Assignment
answer
The conveyance of rights in a contract to a person but not a party.
question
Consideration
answer
What promisor requires as the price for a promise.
