Ch 19 Terminology

Question 1

Adhesion Contract

Answer 1

a contract that is drawn by one party to that partys benefit and whose terms must be accepted as is, on a take it or leave it basis, if a contract is to result

Question 2

Affirm

Answer 2

approve

Question 3

Avoid

Answer 3

to annul, cancel, or make void. to get out of a vodiable contract repudiate

Question 4

Bilateral Mistake/Mutual Mistake

Answer 4

the situation that exists when both parties are mistaken about an important aspect of a agreement

Question 5

Boilerplate

Answer 5

standard language used commonly in documents of the same type

Question 6

Consideration

Answer 6

an exchange of benefits and detriments by the parties to an agreement

Question 7

Contractual Capacity

Answer 7

the legal ability to be able to enter into a contract

Question 8

Duress

Answer 8

the overcoming of a person freedom by the use of threat of physical harm

Question 9

E-signature

Answer 9

abbreviation for electronic signature, a method of signing an electronic message that identifies the sender an dignifies his/her approval of the messges content

Question 10

Exculpatory Clause

Answer 10

a clause that is used in a contract to escape legal responsibility

Question 11

Failure of Consideration

Answer 11

a defense available when the consideration provided fo an agreement is not in fact given to the party being sued

Question 12

Firm Offer

Answer 12

a merchants written promise to hold open an offer for the sale of goods

Question 13

Forbearance

Answer 13

refraining from taking action

Question 14

Fraud

Answer 14

a misrepresentation of a material, existing fact, knowingly made that causes someone reasonably relying on it to suffer damages

Question 15

Fraud in the Execution

Answer 15

Fraud as to the essential nature of the transaction

Question 16

Fraud in the Inducement

Answer 16

Fraud that induces another to enter into a contract

Question 17

In Pari Delicto

Answer 17

In equal fault

Question 18

Lack of Consideration

Answer 18

a defense available to a party being sued when no consideration is contained in the agreement that is the subject of the suit

Question 19

Locus

Answer 19

place; locality

Question 20

Locus Sigilli

Answer 20

place of the seal

Question 21

Memorandum

Answer 21

the writing that is necessary to satisfy the statute of frauds

Question 22

Mutual Mistake

Answer 22

the situation that exist when both parties are mistake about an important aspect of an agreement

Question 23

Nudum Pactum

Answer 23

barren promise with no consideration

Question 24

Option Contract

Answer 24

a binding promise to hold an offer open

Question 25

Parol Evidence Rule

Answer 25

the rule that oral evidence of prior or contemporaneous negotiations between the parties is not admissible in court to alter, vart, or contradict the terms of a written agreement

Question 26

Promisee

Answer 26

one to whom a promise is made

Question 27

Promisor

Answer 27

one who make a promise

Question 28

Promissory Estoppel

Answer 28

a doctrine under which no consideration is necessary when someone makes a promise that induces anothers action or forbearance and injustice can be avoided only by enforcing the promsie

Question 29

Public Policy

Answer 29

underlying unconditional principles that bind carious peoples into a close knot socitey

Question 30

Quid Pro Quo

Answer 30

something for something; one thing in return for another

Question 31

Rescind

Answer 31

to cancel

Question 32

Rescission

Answer 32

cancellation

Question 33

Seal

Answer 33

a mark impression the word seal or the letters L.S. placed on a written contract next to a partys signature

Question 34

Statute of Frauds

Answer 34

the law that deems that certain contracts must be in writing to be enfoceable

Question 35

Unconscionable

Answer 35

so harshly onesided and unfair that the courts conscience is shocked

Question 36

Undue Infuence

Answer 36

the overcoming of a person free will by misusing a position of trust and taking advantage of the oter person who is relying on the trust relationship

Question 37

Unilateral Mistake

Answer 37

a mistake made by only one party to a contract

Question 38

Usury

Answer 38

the charging of a greater amount of interest than is allowed by law