Chapters 12,13,21

Question 1

When an offer is made

Answer 1

When the offeror communicates to the offeree and show clear intention

Question 2

When an offer is accepted

Answer 2

Offeree accepts the terms and to be bound by contract. Silence is not acceptance

Question 3

When an offer is rejected

Answer 3

The offeree’s rejection of the offer terminates the offer.
- inquiring about the “firmness” of an offer does not constitute rejection.

Question 4

When an offer is revoked

Answer 4

Unless an offer is irrevocable, the offeror can revoke the offer anytime before the offeree accepts.

Question 5

When an offer is counteroffered

Answer 5

Rejection of original offer by the offeree and the simultaneous making of a new offer.

Question 6

Mailbox Rule

Answer 6

What By Whom Effective When
Revocation Offeror Received
Rejection Offeree Received
Counteroffer Offeree Received
Acceptance Offeree Sent (if properly dispatched)

Question 7

Fraud

Question 8

Undue Influence

Answer 8

arises from relationships in which one party can
greatly influence another party and overcome that party’s free will. The
contract lacks voluntary consent and is voidable.

Question 9

Duress

Answer 9

A party who enters into a contract under fear or threat
makes the contract voidable. Threatened act must be wrongful or
illegal and render person incapable of exercising free will.

Question 10

Unconscionability

Answer 10

Contracts whose bargains are so oppressive are
unenforceable.

Question 11

Novation

Answer 11

Substitution of a new third party for one of the original contracting parties. All parties must be in agreement

Question 12

Settlement Agreement

Answer 12

A compromise that arises out of a genuine
dispute over the obligations under an existing contract will be recognized at law.

Question 13

Accord and Satisfaction

Answer 13

Parties agree to accept different performance than what was originally agreed upon.

Question 14

Contract that is void

Answer 14

A contract that is never valid or enforceable, like it doesn’t exist (e.g., for illegal activities).

Question 15

Contract that is voidable

Answer 15

a valid contract that can be legally canceled or enforced at the option of one of the parties due to issues like misrepresentation, duress, lack of capacity, or mistake.

Question 16

When is a contract subject to a Condition

Answer 16

A qualification in a contract based on a future event. If the condition is not satisfied, the obligations of the parties are discharged.
Example: The contract to purchase a home may be conditioned upon the buyer obtaining a mortgage loan.

Question 17

Bilateral contract

Answer 17

“A promise for a return promise”.
* The offeree accepts by promising to perform

Question 18

Unilateral contract

Answer 18

“A promise for performance”.
* The offeree can only accept the offer by doing the act requested.

Question 19

When does Statute of Frauds apply

Answer 19

A statute requiring that certain types of contracts be
evidenced by a signed writing in order to be enforceable.
Ex: contracts involving land, promises made in consideration of marriage promises to guarantee another’s debt)

Question 20

When does Promissory Estoppel apply

Answer 20

A promisor may be bound by a promise, even if it was insufficient to form a binding contact, if the following elements are present:
* Must be a clear and definite promise.
* Promisee must justifiably rely on the promise.
* Promisee reasonably relied on the promise by acting or refraining
from some act.
* The promisee’s reliance was definite and resulted in a substantial
detriment.
* Justice will be served by enforcing promise.

Question 21

What’s an Assignment contract

Answer 21

When one person (assignor) transfers their contract rights or benefits to another person (assignee).

Question 22

What’s a Delegation

Answer 22

owned under the contract to another to
perform;

Question 23

What’s a Third-party Beneficiary contract

Answer 23

a contract in which the parties to the contract intend that the contract benefit a third party.

Question 24

Different Types of Damages

Answer 24

• Compensatory Damages
  -Incidental Damages
• Consequential Dmages
  -Punitive damages
• nominal damages
  -mitigation of damages
  -liquidated damages
  -penalties

Question 25

Equitable Remedies and when each will be awarded

Answer 25

Rescission and Restitution:
Rescission is the cancellation of a contract in order to return the
parties to their pre-contract position.
Restitution is the returning of goods, property, or funds previously
conveyed.
Specific Performance: Calls for the performance of the act promised in
the contract and is only awarded when the subject matter of the
contract is unique. It is not awarded for personal service contracts.
Reformation: Allows a contract to be rewritten to reflect the parties’
true intentions.

Question 26

When employers can be held liable for discrimination under Title VII of the Civil Rights Act of 1964.

Answer 26

prohibits discrimination based on:
1. Race
2. Skin color
3. National Origin
4. Religion
5. Gender
* Recently, discrimination based upon sexual orientation was added.
A class of persons defined by one or more of these criteria is a protected class.

Question 27

When employers can be held liable for discrimination under the Age Discrimination in Employment Act

Answer 27

The ADEA protects individuals over the age of 40 from workplace
discrimination that favors younger workers.
* The act also prohibits mandatory retirement for nonmanagerial workers.

Question 28

When employers can be held liable for discrimination under the Americans with Disabilities Act

Answer 28

The ADA requires employers to offer “reasonable accommodation” to
employees or applicants with a disability who are otherwise qualified for the
job they hold or seek, unless it would cause the employer an undue hardship

Question 29

The employer’s Defenses to Employment Discrimination

Answer 29

Employers can fire or refuse to hire a person who is an alcoholic if
1. the person poses a substantial risk of harm to self or others and
2. the risk cannot be reduced by reasonable accommodation.

Question 30

Intentional(disparate treatment) Discrimination

Answer 30

When an employer intentionally discriminates against an employee or job applicant.
To sue, the person must show:

They’re in a protected class.
They applied and are qualified.
They were rejected.
The employer kept looking or hired someone not in the protected class.

Question 31

Unintentional (disparate-impact) Discrimination

Answer 31

When an employer’s practices unintentionally harm a protected group.
Two ways to show this:

Pool of Applicants Test: Shows the employer’s workforce doesn’t reflect the local labor market for the protected group.
Rate of Hiring: Compares hiring rates; if a job requirement excludes protected class members more often than others, it’s discriminatory.

Question 32

How a Prima Facie Case is established in a discrimination action

Answer 32

Initial proof of discrimination by an employee.
Steps:
Burden shifts to employer to show a non-discriminatory reason.
Employer gives a legal defense.
Employee must show the defense is a pretext for discrimination.

Question 33

Different types of Sexual Harassment and when employers can be liable to employees that have been sexually harassed

Question 34

Under what circumstances the Equal Pay Act has been violated

Answer 34

equires equal pay for male and female employees
working at the same establishment doing similar work. To determine violations, courts look to the primary duties (job content) of the two jobs.

Question 35

Complete Performance

Answer 35

Parties perform exactly as agreed, and all conditions are satisfied

Question 36

Substantial Performance

Answer 36

A party in good faith that performs substantially all of the terms can enforce the contract as long as the non-breaching party received substantially the same benefits. The non-breaching party can recover damages

Question 37

Material Breach

Answer 37

Performance was not substantial

Question 38

Compensatory Damages

Answer 38

Compensate the nonbreaching party for the loss of the bargain. Difference between contract price and price paid

Question 39

Incidental Damages

Answer 39

Expenses incurred to obtain performance from another source. Awarded in addition to compensatory damages.

Question 40

Consequential Damages

Answer 40

Lost profits that were forseeable at the time of contracting

Question 41

Punitive Damages

Answer 41

Awarded to punish or deter future bad conduct. Generally, not available for mere breach of contract.

Question 42

Nominal Damages

Answer 42

Only awarded when no other damages are available to the non breaching party because he/she didn’t suffer any financial loss

Question 43

Mitigation of Damages

Answer 43

The duty of an injured party to lessen their losses (e.g., a landlord should try to find a new tenant if the current one leaves).

Question 44

Liquidated Damages

Answer 44

A specific amount agreed upon in a contract to be paid if one party breaches the agreement.

Question 45

Penalties

Answer 45

Treated as penalties and also unenforceable.