Ch. 7: Contract Provisions

Question 1

antenuptial agreement / prenuptial agreement

Answer 1

contract entered into prior to marriage determining parties’ rights on dissolution of the marriage; must be in writing

Question 2

condition

Answer 2

fact or event, the happening or nonhappening of which creates or extinguishes an absolute duty to perform

Question 3

condition concurrent

Answer 3

promise to perform and performance occur simultaneously

Question 4

condition precedent

Answer 4

fact or event that must occur before an absolute duty to perform is created

Question 5

condition subsequent

Answer 5

fact or event that extinguishes an absolute duty to perform; no breach of contract

Question 6

covenant

Answer 6

an absolute, unconditional promise to perform

Question 7

express condition

Answer 7

condition created by words of the parties

Question 8

guarantee

Answer 8

promise to answer for the debts of another; must be in writing

Question 9

implied-in-fact condition / express condition

Answer 9

condition created by the reasonable expectations of the parties

Question 10

implied-in-law condition

Answer 10

condition imposed by the law in the interest of fairness

Question 11

palimony

Answer 11

payment made to a person under certain circumstances pursuant to the break-up of a nonmarital relationship

Question 12

parol evidence rule

Answer 12

oral testimony may not be used to vary the terms of a contract in writing

Question 13

promissory note

Answer 13

written promise to pay money in repayment of a loan

Question 14

rules of construction

Answer 14

court guidelines used to interpret contractual provisions

Question 15

statute of frauds

Answer 15

law requiring certain types of contracts to be in writing to be enforceable

Question 16

time of the essence clause

Answer 16

contractual clause that makes a covenant of a timing element

Question 17

Uniform Commercial Code (UCC)

Answer 17

statutory enactment that covers the sale of goods valued at over $500, among other things