Chapter 10 : The Law of Contract Flashcards
The Law of Contract
Revocation is the term for the cancellation of an offer communicated by the offeror to the offeree prior to acceptance.
(1) True
(2) False
Revocation is the term for the cancellation of an offer communicated by the offeror to the offeree prior to acceptance.
(1) True
A condition is best described as:
(1) A secondary term of a contract, a breach of which does not allow the injured party to terminate the contract and/or sue for damages or specific performance.
(2) The reason which induces a party to enter into a contract.
(3) A fundamental term of a contract, a breach of which allows the injured party to terminate the contract and/or sue for damages or specific performance.
(4) A promise contained within an agreement.
A condition is best described as:
(3) A fundamental term of contract, a breach of which allows the injured party to terminate the contract and/or sue for damages or specific performance.
Describe what occurs in a counter-offer.
A counter-offer is a statement by the recipient of the offer which has the legal effect of rejecting the offer and of proposing a new offer to the offeror (who then becomes the recipient of the “new” offer).
What is contained in the contract of purchase and sale?
A contract of purchase and sale of land contains the rights and obligations of the vendor and purchaser with respect to the purchase and sale.
What does a court order when it awards specific performance to a plaintiff?
When it awards specific performance, a court orders that the terms of the contract be carried out by the party in default.
A hidden or concealed defect that would not be discovered during the course of a ___________ inspection is considered a ________ defect.
A hidden or concealed defect that would not be discovered during the course of a reasonable inspection is considered a latent defect.
What is an invitation to treat?
An invitation to treat is a type of advertisement used to induce the public or an individual to submit their own offers. An invitation to treat is not an offer capable of acceptance to form a contract.
A contract is considered void if:
(1) it is for an amount less than $5,000.
(2) it has always had legal existence or effect and is capable of being enforced.
(3) it has never had any legal existence or effect and is not capable of being enforced.
(4) the contractor decides to back out of the contract within 30 days of the signing.
Answer:
A contract is considered void if:
(3) it has never had any legal existence or effect and is not capable of being enforced.
In the law of contracts, __________ amounts to the unmaking or undoing of a contract from the beginning, as opposed to termination.
In the law of contracts, rescission amounts to the unmaking or undoing of a contract from the beginning, as opposed to termination.
___________ ___________ is a legal term for a “subject to” clause. In contract law, it calls for the happening of some event or the performance of some act before the contract shall be __________ upon the parties.
Condition precedent is a legal term for a “subject to” clause. In contract law, it calls for the happening of some event or the performance of some act before the contract shall be binding upon the parties.
___________ is a legal doctrine that provides that where the existence of a specific thing is necessary for performance of the contract, the duty to perform is discharged if the thing, for reasons beyond anyone’s control, is no longer in existence at the time for performance.
Frustration is a legal doctrine that provides that where the existence of a specific thing is necessary for performance of the contract, the duty to perform is discharged if the thing, for reasons beyond anyone’s control, is no longer in existence at the time for performance.
Define a contract.
A contract is an agreement between two or more persons which creates a legal obligation to do or not to do a particular thing.
The legal term for the thing of value that is bargained for, and received by, each party to a contract, is known as ___________ .
The legal term for the thing of value that is bargained for, and received by, each party to a contract, is known as consideration.
In legal terms, what is a breach of contract?
A breach of contract is failure, without legal excuse, to perform any promise which forms the whole or part of a contract.
Duress is a situation where a person is forced into a contractual relationship against his/her will by the threat of imprisonment either to himself/herself or his/her family, or the threat of physical force.
(1) True
(2) False
Duress is a situation where a person is forced into a contractual relationship against his/her will by the threat of imprisonment either to himself/herself or his/her family, or the threat of physical force.
(1) True
