Business Law part two (second half of the semester)

Question 1

A written instrument in a special form, sealed, delivered, and used to pass the legal title of real property from one person to another?

Answer 1

A Deed

Question 2

When you own less then full property value (I.E. If the city has a railroad that runs through your property), and is also considered the inverse property owers right.

Answer 2

An Easement

Question 3

A record of real estate deeds or other land titles that is maintained by a local government official. The register of deeds will be used in conjunction with a grantor-grantee index that lists the owner of record and any transfers of property.

Answer 3

Registry of Deeds

Question 4

the process of retrieving documents evidencing events in the history of a piece of real property, to determine relevant interests in and regulations concerning that property.

Answer 4

ATitle Search

Question 5

What are you looking for when doing a title search?

Answer 5

1) A clear title

2) Encumberances

Question 6

Public laws that govern the landowners interest in adoption?

Answer 6

Zoning

Question 7

Something that is owned or done previous to zoning is considered?

Answer 7

Grandfathered

Question 8

What is the term for the person who has the benefit of an easement?

Answer 8

Dominant

Question 9

What is the term for the perosn who has the burdon of an easement?

Answer 9

Servient

Question 10

Real Estate with an easement on it is considered?

Answer 10

Subprime Real Estate

Question 11

This is the term used for ownership of the whole bundle of rights

Answer 11

Fee Simple Absolute

Question 12

The person who grants property is called the?

Answer 12

Grantor

Question 13

The person who gets the property is called what?

Answer 13

The Grantee

Question 14

On Exam: “ If a granter gives away real estate the that person now has what?”

Answer 14

A Life Estate

Question 15

When a person is given A Life Estate, how long is does it belong to them?

Answer 15

Until they die

Question 16

When a Life Estate goes back to the Grantor (due to a death), what is it called?

Answer 16

A Reversionary

Question 17

On Exam: If someone forget’s to put what type of tenany is applicable in their deed what type does it intail by default?

Answer 17

Tenants in Common

Question 18

On Exam: If someone bought a house during WWI in cash, and it stayed in the family for 80 years, then what has never been performed?

Answer 18

A Title Search

Question 19

What is the private way to enforce use of property?

Answer 19

Conditions and Covenants

Question 20

What four things should you worry about when starting a business?

Answer 20

1) Name
2) Copyright
3) Ownership
4) Liability
5) Legal Forms (Proprietorship, Corportation, Partnership etc…)

Question 21

What is the simplest form of business?

Answer 21

Sole Proprietorship

Question 22

What is the 2nd Simpliest form of business?

Answer 22

A Partnership

Question 23

What are the forms of doing business?

Answer 23

1) Sole Proprietorship
2) Partnership
3) Joint Venture
4) Corportation
5) Subchapter S Corporation
6) Limited Liability Corporation

Question 24

On Exam: True or False? “ A Partnership needs to be in writing?

Answer 24

False

Question 25

This should be included in a business contract in case of the death of an owner, and allows the other owner(s) to buy the other's share?

Answer 25

**_A Buyout Agreement_**

Question 26

What are 3 main factors of an organization?

Answer 26

1) **_Control_** 2) **_Taxes_** 3) **_Liability_**

Question 27

On Exam: "What is the two types of partenrships and what is the difference betweent the two?

Answer 27

1) Limited Partnership - No Control 2) General Partnership - Can Control

Question 28

What is the main reasons to incorporate?

Answer 28

1) **_A Corporation is it's own entity_** 2) **_You are only liablie for your share_**

Question 29

What is it called when you have two or more people for a single or limited purpose?

Answer 29

**_A Joint Venture_**

Question 30

On Exam: "Does there need to be more than one person in an organization?

Answer 30

**_No_**

Question 31

What is the best way to avoid paying for a lawsuit?

Answer 31

**_Insurance_**

Question 32

On Exam: What is it called when someone cannot claim a corporate liability for an action?

Answer 32

**_"Piercing the Corporate Veil"_**

Question 33

On Exam: What is the difference between a Subchapter S Corporation and a Standard Corporation?

Answer 33

1) **_SubChapter S Corporations only get taxed once_** 2) **_SubChapter S Corporations Can only have up to 35 employees_**

Question 34

What is the downside of a Standard Corporation?

Answer 34

**_You Have to pay double taxes_**

Question 35

True or False: Corporations are seperate entities?

Answer 35

**_True_**

Question 36

Who owns a corporation?

Answer 36

**_Shareholders, and the Controling Shareholder_**

Question 37

Who owns an L.L.C.?

Answer 37

**_Members_**

Question 38

What are the basic governing documents of a corporation?

Answer 38

**_The Articles Of Incorporation_**

Question 39

On Exam: What are the rules for operating a corperation or other organization?

Answer 39

**_Bylaws_**

Question 40

On Exam: What is the basic governing document of a corporation?

Answer 40

**_The Articles of Incorporation_**

Question 41

What is found by conducting a "Name Check"?

Answer 41

1) Who are the Shareholders 2) Who is the a) President b) Treasurer c) Clerk

Question 42

When the President, Treasurer and Clerk give permission to sign coporate documents, they are granting?

Answer 42

**_Corporate Authority_**

Question 43

What is the basic meaning of a contract?

Question 44

What are the elements of a contract?

Answer 44

Must be: 1) **an Agreement** 2) **Bargained for Consideration** 3) **Two parties of legal age ( and not inpaired by drugs or insanity)** 4) **For a legal purpose (Can't be illegal)**

Question 45

What is "Bargain for Consideration"?

Answer 45

**Someone has to give something up of value or do something**

Question 46

What are the two types of contracts?

Answer 46

1) Bilateral 2) Unilateral

Question 47

What is a Bilateral Contract?

Answer 47

**A Promise for a promise** ("I will")

Question 48

What is a Unilateral Contract?

Answer 48

**A Promise for an Act** ("if you come I will")

Question 49

What is the only way to accept a unilateral Contract?

Answer 49

**To do the act specified**

Question 50

For "Bargain for Considration" what must the consideration have?

Answer 50

**_Value_**

Question 51

This type of contract has no legal effect, and confers no rights or duties?

Answer 51

**_A Void Contract_**

Question 52

That which is valid until one party, who has the power of avoidance. exercises such power?

Answer 52

**_A Voidable Contract_**

Question 53

Is a contract signed by a minor is "Voidable" by the minor?

Answer 53

Yes, if the contract is not for necessities (Rent, Food, Healthcare)

Question 54

True or False: If a car is bought by a minor the dealer can void the contract but the minor can't?

Answer 54

False, The dealer can't, but the minor can (because it is not a necessity)

Question 55

What are the two **sources** of **contract law**?

Answer 55

1) **Judge Made** 2) **Uniform Commercial Code**

Question 56

On Exam: What does **Uniform Commerical Codes** Cover?

Answer 56

**The Sale of goods over $500**

Question 57

This is not a true contract, and does not have the consent of both parties?

Answer 57

**A Quasi Contract**

Question 58

What does **Quantum Meruit** mean it latin?

Answer 58

**_"As Much as He Deserves"_**

Question 59

This is the remedy used to avoid the **unjust** enrichment of one party at the expense of another, usually in association with quiasi-contract?

Answer 59

**_Quantum Meruit_**

Question 60

Whatare the legal remedies for breach of contract?

Answer 60

1) **_Nominal_** 2) **_Compensatory_** 3) **_Consequential_** 4) **_Punitive_**

Question 61

On exam: "Punitive damages are often awarded for breach of contract?"

Answer 61

**_False_**

Question 62

Do people usually sue of nominal damages?

Answer 62

**_No_**

Question 63

If A promises B that he can do a job on sat for $700 and doesn't show up. But B gets C to do it for $800, how much does A owe B?

Answer 63

$100 Compensatory Damages

Question 64

This type of damages must be **unique** and **foreseeable,** and are only available if the other party knew of the special circumstances?

Answer 64

**Consequential Damages**

Question 65

A fixed sum agreed on between the parties of a contract to be paid as ascertained damaged by the party who breaches the contract (if the sum is excessive, the courts will declare it to be a penalty and unenforcable?

Question 66

What are the steps of buying/selling a house?

Answer 66

1) **Purchase and Sale agreement** 2) **Need to put down a deposit** 3) **Must decide beforehand "agreed upon damages"**

Question 67

What are the two types of remedies?

Answer 67

1) **Legal** 2) **Equitable**

Question 68

What type of remedy is usually used in contract cases?

Answer 68

**Legal (money)**

Question 69

What are the three types of equitable remedies?

Answer 69

1) **Specific Performance** 2) **Rescission** 3) **Restitution**

Question 70

This type of equitable remedy is used when the object in the contract is unique, usually employed in real estate and selected persaonal property sales contract settings-loss is not calculated in terms of money damages?

Answer 70

**Specific Performance**

Question 71

This type of equitable remedy is used if the contract was made based on mistake or fraud, a court in equity may grant this?

Answer 71

**Rescission**

Question 72

This equitable remedy is used after rescission, and parties must return any benefit?

Answer 72

**Restitution**

Question 73

Equitable remedy where Parties are put back into the legal position they were in BEFORE the contract was created?

Question 75

What is the basic definition of an "agreement"?

Answer 75

**Mutual Assent**

Question 76

On exam: T/F For an agreement to be made, the current theory of contracts is the **subjective** theory of the minds?

Answer 76

**False, it is the Objective theory**

Question 77

For a mutual assent to be attained there must be a?

Answer 77

**An Objective meeting of the minds**

Question 78

What must be made and accepted to confirm a contract?

Answer 78

An offer?

Question 79

Who makes the offer?

Answer 79

**The offeror**

Question 80

Who recieves the offer?

Answer 80

**The offeree**

Question 81

an offer is made for a contract what must be made before the contract is confirmed?

Answer 81

**an Objective Acceptance**

Question 82

This is a "deciding factor" in a contract?

Answer 82

**A Material Term**

Question 83

This is when the courts fill in missing infromation (except for quantitiy)?

Answer 83

Gap Filling

Question 84

On Exam: If someone says "I'll buy your widgets for $.25 a piece, and I'd like to have them by friday" what is missing?

Answer 84

The Quantity

Question 85

If there is no meeting of the minds then the contract is \_\_\_\_\_\_\_\_

Answer 85

**Void**

Question 86

For gap filling, why won't the courts fill in quantity?

Answer 86

Because the court has no reasonable baises to fill in the the quantity

Question 87

Who is the only person who can accept an offer?

Answer 87

The Offeree

Question 88

How do you make a contract inrevokable for a period of time?

Answer 88

Make an **Option Contract**

Question 89

What is included in an option contract?

Answer 89

A bargain for consideration not included in the initial price

Question 90

What don't courts consider with a Bargain for Consideration?

Answer 90

**Monetary Value**

Question 91

In an option contract, if you offer something, and the offeree agrees not to take other offers, it is called a?

Answer 91

Bargain for Consideration (Legally binding)

Question 92

What are the 2 elements of Bargain for Consideration?

Answer 92

1) Legal Benefit 2) Legal Detriment

Question 93

If you don't like the results of a will you can?

Answer 93

**Contest**

Question 94

Under what grounds can you contest a will?

Answer 94

1) Capacity 2) Duress

Question 95

On Exam: When a contract is based on factors beyond control it's a) Enforceable b) Not-Enforceable c) Void d) Voidable

Answer 95

**a)Enforceable**

Question 96

On Exam: When a a person making the promise is in control, the contract is: a) Voidable b) Enforceable c) Void d) Not-Enforceable

Answer 96

d) **Not Enforceable**

Question 97

Why is a contract that is in within the control of the person making the promise not-enfoceable?

Answer 97

**Because there is no Bargain for Consideration (legal detriment)**

Question 98

On Exam: 2 things that seem Illusory (but are not) are?

Answer 98

1) Requirements and Outputs 2) Act in "good faith"

Question 99

On Exam: If someone made a contract that said "All the clams I need I'll buy from you" it would be considered a?

Answer 99

**Requirements Contract (enforeable)**

Question 100

On Exam: If someone made a contract that said "I'll sell you all the clams I get" it's called a?

Answer 100

**Outputs Contract (enforceable)**