Chapter 10- The Law Of Contract

Question 1

A contract that never existed at all is a ______ contract

Answer 1

Void

Question 2

A contract which offends against public policy or against a particular statue is a _______ contract

Answer 2

Illegal

Question 3

A _______ contract is one that one or both of the parties has the option to rescind (cancel)

Answer 3

Voidable

Question 4

A ______ is a contract one which has the essentials of a valid contract but it cannot be sued upon for some procedural reason

Answer 4

Unenforceable

Question 5

The term for the cancellation of an offer communicated by the offer or to the offered prior to acceptance is known as?

Answer 5

Revocation

Question 6

If an “option agreement” is offered, can the party who made the offer revoke the offer before the time stated in the offer?

Answer 6

No.

Question 7

If a counter offer is presented, can the offeree accept the previous offer if the counter offer is declined?

Answer 7

No, the counter offer voids the original offer

Question 8

When a court rather than granting damages in lieu of performance orders that the terms of the contract be carried out by the part in default is defined as?

Answer 8

Specific Performance

Question 9

When would a court typically grant specific performance as a remedy?

Answer 9

When the property is unique to the extent that its substitute would not be readily available

Question 10

What are the remedies awarded by the courts in a contract law?

Answer 10

Damages, specific performance, injunction, and quantum merit

Question 11

What is the only common law remedy availed for breach of contract?

Answer 11

Damages

Question 12

Who is eligible to sue for damages?

Answer 12

Anyone who can prove that he or she has suffered loss as a result of a breach of contract

Question 13

What is the only form of remedy in common law?

Answer 13

Damages

Question 14

Define “ A court order which either restrains a party from doing something or requires a party to do something”

Answer 14

Injunction

Question 15

What remedy can do the following?
1.) Stop a party from doing something (E.G selling a property to someone else when the vendor has contracted to sell to the plaintiff)

2.) Require a party do something

Answer 15

Injunction

Question 16

Define “ To transfer over to another”

Answer 16

Assign

Question 17

In a statutory assignment, who is required to be named as parties to the action

Answer 17

The original promiser and the assignee

Question 18

Who must be named in an equitable assignment

Answer 18

All 3 parties

Question 19

A false assertion of fact which, if accepted, leads one to an incorrect belief about a given situation is?

Answer 19

Misrepresentation

Question 20

What are the 3 criteria’s required to determine misrepresentation?

Answer 20

1. ) The statement must be false
2. ) In must have induced the other party to enter into the contract
3. ) Induced a reasonable person to enter into the contract

Question 21

Any of these 3 items represent what?

1. ) One arty announcing that he or she will not perform although the time for performance has not yet arrived
2. ) by one of the parties making the performance of the contract impossible
3. ) be failure of a party to preform at the time of the stipulated for performance

Answer 21

Breach of contract

Question 22

When one party is mistaken about a fundamental term of a contract an the other party is aware of this mistake but does nothing to correct it it is known as?

Answer 22

An Unilateral Mistake

Question 23

When both parties make a fundamental mistake about a contract but each makes a different mistake is known as

Answer 23

A mutual Mistake

Question 24

When both parties to a contract have both made the same mistake about a fundamental term of the contract this is?

Answer 24

A common mistake

Question 25

As a general principle, what’s the proper method of communicating acceptance of an offer?

Answer 25

The same form as the offer

Question 26

When an offer is by instantaneous the acceptance will not be completed until?

Answer 26

It has been received by the offeror

Question 27

Define “quantum meruit”

Answer 27

As much as deserved