Business law reversed revised exam 1

Question 1

an agreement made and executed in satisfaction of the rights one has from a previous contract.

Answer 1

Accord and satisfaction

Question 2

the authority an agent is believed by third parties to have because of behavior by the principal.

Answer 2

Apparent authority

Question 3

recipient of the proceeds of a life insurance policy.

Answer 3

Beneficiary

Question 4

the body of law concerned with private or purely personal rights.

Answer 4

Civil law

Question 5

the body of law deriving from judicial decisions, rather than from statutes or constitutions.

Answer 5

Common law

Question 6

an award paid to the injured party to cover the exact amount of their loss, but no more.

Answer 6

Compensatory damages

Question 7

the written request which initiates a civil lawsuit.

Answer 7

Complaint (petition)

Question 8

the bargained-for exchange of a contract.

Answer 8

Consideration

Question 9

contract to sell goods at a future time.

Answer 9

Contract to sell

Question 10

the legal ability to enter into a contract.

Answer 10

Contractual capacity

Question 11

third party beneficiary owed a debt by a party to a contract.

Answer 11

Creditor beneficiary

Question 12

election to avoid a voidable contract.

Answer 12

Disaffirmance

Question 13

any method by which a legal duty is extinguished.

Answer 13

Discharge

Question 14

a third party beneficiary to whom no legal duty is owed and performance is a gift.

Answer 14

Donee beneficiary

Question 15

the authority of an agent, stated in the document or agreement creating the agency.

Answer 15

Express authority

Question 16

the goods specified by the buyer and seller.

Answer 16

Identified goods

Question 17

an agent’s authority to do things not specifically authorized in order to carry out express authority.

Answer 17

Implied authority

Question 18

interest in real property for the duration of a person’s life.

Answer 18

Life estate

Question 19

small amount awarded when there is a technical breach but no injury.

Answer 19

Nominal damages

Question 20

the substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it.

Answer 20

Novation

Question 21

a proposal to make a contract.

Answer 21

Offer

Question 22

an award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff.

Answer 22

Punitive damages

Question 23

a contract created or implied by law to prevent unjust enrichment.

Answer 23

Quasi contract

Question 24

approving an act which was executed without authority; electing to be bound by a voidable contract.

Answer 24

Ratification

Question 25

land and those objects permanently attached to land.

Answer 25

Real property

Question 26

to set aside or cancel a contract.

Answer 26

Rescission

Question 27

cancellation of an instrument by the maker; rescinding an offer.

Answer 27

Revocation

Question 28

a contract remedy by which the court requires the breaching party to perform the contract.

Answer 28

Specific performance

Question 29

a statute originally enacted by English Parliament, and now enacted in some form in all the American states, listing certain types of contracts which could only be enforced if in written form.

Answer 29

Statute of frauds

Question 30

a law that restricts the period of time within which an action may be brought to court.

Answer 30

Statute of limitations

Question 31

laws which are enacted by legislative bodies.

Answer 31

Statutes

Question 32

person not party to a contract, but whom parties intended to benefit.

Answer 32

Third party beneficiary

Question 33

a private or civil wrong, other than by breach of contract, for which there may be action for damages.

Answer 33

Tort

Question 34

improper influence that is asserted by one dominant person over another, without the threat of harm.

Answer 34

Undue influence

Question 35

an agreement which at the current time is not enforceable by law.

Answer 35

Unenforceable contract

Question 36

a contract which would be an enforceable agreement, but due to circumstances may be set aside by one of the parties.

Answer 36

Voidable contract