Contracts

Question 1

Undue Influence

Answer 1

This contract lacks voluntary consent and is voidable

Question 2

How does Undue Influence contract arise

Answer 2

When one party greatly influences another party and overcomes that party’s free will

Question 3

Duress

Answer 3

A party that enters into a contract under fear or threat. This contract is voidable.

Question 4

Unconsionability

Answer 4

Contracts whose bargains are so oppressive are unenforceable

Question 5

Novation

Answer 5

Substituting a new 3rd party for original contracting party. All parties must be in agreement

Question 6

Settlement Agreement

Answer 6

A compromise that arises out of a genuine dispute over the o locations under an existing contract

Question 7

Accord and Satisfaction

Answer 7

Parties agree to accept different performance (obligation of a contract) than what was originally agreed upon.

Question 8

Contract that is void

Answer 8

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

Question 9

Contract that is voidable

Answer 9

A valid contract that can be legally cancelled or enforced at the option of one of the parties due to issues like misrepresentation, duress, or mistake

Question 10

When is a contract subject to a Condition

Answer 10

A qualification in a contract based on a future event. If the condition isn’t satisfied, the obligations of the parties are discharged. (Eg the contract to purchase a home maybe conditioned on the person obtaining a mortgage loan

Question 11

Bilateral contract

Answer 11

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

Question 12

Unilateral Contract

Answer 12

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

Question 13

Statute of Frauds

Answer 13

A statute requiring that certain types of contracts be evidenced by a signed agreement in order to be enforceable. Ex contracts involving land, promises made in marriage, and guarantees in debt

Question 14

Promissory Estoppel definition

Answer 14

allows a plaintiff to recover damages, despite no actual contract, when the defendant made a promise that the plaintiff detrimentally relied upon, and the plaintiff’s reliance on that promise was reasonable.

Question 15

When does Promissory Estoppel apply (5 things)

Answer 15

1. Must be a clear and definite promise
2. Promisee must rely on the promise
3. Promisee reasonably relied on the promise by acting or refraining from some act.
4. The reliance resulted in a substantial detriment to the promisee
5. Justice will be served by enforcing promise

Question 16

Assignment Contract

Answer 16

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

Question 17

Delegation

Answer 17

Giving another person the responsibility of exercising the performance agreed to in the contract

Question 18

Third Party Beneficiary Contract

Answer 18

A contract where the parties in the contract intent the contract benefit a third party

Question 19

Rescission

Answer 19

The cancellation of a contract in order to return the parties to their pre-contract position

Question 20

Restitution

Answer 20

The returning of goods, properties or funds previously conveyed

Question 21

Specific Performance

Answer 21

Calls for the performance of the act promised in the contract. Only awarded when the subject of the contract is unique. Not awarded for personal service contracts

Question 22

Reformation

Answer 22

Allows a contract to be rewritten to reflect the parties’ true intentions