Chapter 13

Question 1

A mistake of fact in a contract made by one party in the contract

Answer 1

unilateral mistake

Question 2

A mistake of fact in a contract made by both parties

Answer 2

bilateral mistake

Question 3

When a party takes specific action to conceal a fact that is material to the contract.

Answer 3

Misrepresentation by conduct

Question 4

Guilty knowledge that signifies there was an intent to decieve

Answer 4

scienter

Question 5

Arises from relationships in which one party can greatly influence another party, thus overcoming that party’s free will.

Answer 5

undue influence

Question 6

The use of threats to force someone into a contract contitues

Answer 6

duress

Question 7

Legal term for terminating a contract

Answer 7

discharge

Question 8

THe most common way to discharge or “fullfill” a contract

Answer 8

performance

Question 9

A qualification in a contract based on possible future event.

Answer 9

Condition

Question 10

A condition that must be fullfilled before a party’s performance can be required is called

Answer 10

a condition precedent

Question 11

An unconditional offer to perform by a person who is ready, willing, and able to do so.

Answer 11

Tender

Question 12

When a party in good faith performs subtatnially all ot the terms of the contract. must not vary greatly and give substantially the same results

Answer 12

Substantial performance

Question 13

The nonperformance of a contractual duty

Answer 13

breach of contract

Question 14

When one party of a contract refuses to obligate their obligations prior to any member of the contracts duty to perform begins

Answer 14

anticipatory repudiation

Question 15

When both parties agree to substitute a third party for one of the original parties

Answer 15

novation

Question 16

When performance is impossible in an objective sense

Answer 16

impossibility of performance

Question 17

When courts excuse performance on basis the it become much more expensive or difficult than either party originally believed

Answer 17

commercial impracticability

Question 18

The relinquishment of legal right is called

Answer 18

Waiver

Question 19

Difference between damages in tort cases vs contract law

Answer 19

Tort awards damages for harm, whereas contracts compensate for loss of bargain. Damages put people in the place they would have been if the contract would have been performed.

Question 20

foreseeable damages that result from a party’s breach of contract are called

Answer 20

consequential damages

Question 21

a provision in a contract specifying that a certain dollar amount is to be paid in the event of future default or breach

Answer 21

liquidation damages

Question 22

specifies a certain amount to be paid in teh event of a default or breach of contract

Answer 22

penalty

Question 23

To recind a contract, both parties make this by returning goods, property, or funds

Answer 23

restitution