Contract Law

Question 1

Breach of contract

Answer 1

Failure, without legal excuse, to perform as required by a contract

Question 2

Competent party

Answer 2

Person considered legally capable of entering into a binding contract

Question 3

Consideration

Answer 3

An act or promise given in exchange for something

Question 4

Contract

Answer 4

A legally enforceable agreement to do (or not to do) a particular thing

Question 5

Counteroffer

Answer 5

An offer made in response to an offer

Question 6

Duress

Answer 6

The application of force to obtain an agreement

Question 7

Fraud

Answer 7

An act intended to deceive for the purpose of inducing another to give up something of value

Question 8

Liquidated damages

Answer 8

An amount of money specified in a contract as compensation to be paid if the contract is not satisfactorily complete

Question 9

Power of attorney

Answer 9

A document by which one person authorizes another to act on his or her behalf

Question 10

Specific performance

Answer 10

Contract performance according to the precise terms agreed upon

Question 11

Void contract

Answer 11

A contract that has no binding effect on the parties who made it

Question 12

Voidable contract

Answer 12

A contract that is able to be voided by one of its parties

Question 13

Expressed contract

Answer 13

Occurs when the parties to the contract declare their intentions either orally or in writing

Question 14

Party

Answer 14

Legal term that refers to a person or group involved in a legal proceeding

Question 15

Implied contract

Answer 15

Created by neither words nor writing but rather by actions of the parties indicating that they intend to create a contract

Question 16

Bilateral contract

Answer 16

Results when a promise is exchanged for a promise

Question 17

Unilateral contract

Answer 17

Results when a promise is exchanged for performance

Question 18

Forbearance

Answer 18

Forebear - promise not to act

Question 19

Valid contract

Answer 19

Meets all the requirements of law. Binding upon its parties and legally enforceable in a court of law

1 legally competent parties
2 mutual agreement
3 lawful objective
4 consideration 
5 contract in writing when required by law

Question 20

Novation

Answer 20

Substitution of a new contract between the same or new parties

Question 21

Statue of limitations

Answer 21

Limits by law the amount of time a wronged party has to seek the aid of a court in obtaining justice