Exam 2

Question 0

Acceptance

Answer 0

Only offeree can accept the offer. Must be unconditional and unambiguous. Methods of acceptance by words or actions.

Question 1

Torts

Answer 1

A wrongful act resulting in an injury, loss, or damage, for which the injured party is entitled compensation.

Question 2

Caveat Emptor

Answer 2

Literally, let the buyer beware. A doctrine in which the buyer of a product assumed any risk associated with the purchase or use of the product.

Question 3

Contract

Answer 3

An agreement, obligation, or legal tie whereby a party binds himself or herself, expressly or impliedly, to pay a sum of money or to perform or omit to do a certain act or thing.

Question 4

Contract of Adhesion

Answer 4

A contract heavily weighted to favor the party that possesses significantly more bargaining power.

Question 5

Consideration

Answer 5

Exchange. Parties give up or get something from one another, with value being subjective. May exchange property, services, or refrain from something you are at liberty to do normally.

Question 6

Counter-offer

Answer 6

An offer made by the offeree to the offeror that would materially alter the original offer and thus require acceptance by the offeror.

Question 7

Implied Agency Rule

Answer 7

In contract law, if the offer does not state that the acceptance will not be effective until it is received, the moment an acceptance is sent by an authorized means a contract is effective.

Question 8

Legal benefit

Answer 8

Receiving something that one had no prior legal obligation to receive.

Question 9

Legal Detriment

Answer 9

The requirement that a party does or promises to do something which there was no prior legal duty to do or refraining from doing something that there was no prior legal duty to refrain from doing.

Question 10

Mirror-image rule

Answer 10

Acceptance must be on same terms as offer. Then we can have a contract.

Question 11

Offer

Answer 11

A manifestation by a person of a desire to enter into a contract.

Question 12

Offeree

Answer 12

The person to whom an offer is made.

Question 13

Offeror

Answer 13

The person who makes an offer.

Question 14

Promise

Answer 14

Voluntary commitment by a person to another person to perform in some manner or refrain from some action in the future.

Question 15

Promisee

Answer 15

The person to whom a promise is made.

Question 16

Promisor

Answer 16

The person who makes a promise.

Question 17

Promissory Estoppel

Answer 17

The doctrine that makes certain contracts binding although they are not supported by consideration.

Question 18

Public Policy

Answer 18

Generally accepted standards of conduct in the community.

Question 19

Unconscionability

Answer 19

A lack of meaningful choice in a contractual relationship coupled with a contract term that is so one-sided as to be oppressive.

Question 20

Uniform Commercial Code

Answer 20

A model code that deals with sale of goods, commercial paper, secured transactions, and other commercial activities.

Question 21

Compensatory damages

Answer 21

Those damages necessary to place the aggrieved party n the same position he or she would have occupied had the contract not been breached in the first place.

Question 22

Consequential damages

Answer 22

Special damages that could have been foreseen at the time of the breach of contract but which do not directly flow from the breach of contract.

Question 23

Duress

Answer 23

Threats, violence, constraints, or other action brought to bear on someone to do something against their will or better judgment.

Question 24

Fraud

Answer 24

Deliberate deception to secure unfair or unlawful gain.

Question 25

Incidental beneficiary

Answer 25

A person who is not a party to a contract who obtains a benefit that was not intended by the parties to the contract.

Question 26

Injunction

Answer 26

An order by a court that prohibits or restrains a party from doing a particular act.

Question 27

Intended beneficiary

Answer 27

The person who the parties to a contract wanted to benefit through the performance of the contract.

Question 28

Material breach

Answer 28

A substantial failure of one of the parties to a contract to perform his or her obligations pursuant to the contract.

Question 29

Mitigation of damages

Answer 29

The obligation of the injured party in a breach of contract to keep losses or damages as small as possible.

Question 30

Nominal damages

Answer 30

A token sum awarded to a party in light of a breach of contract that did not produce any financial loss to the aggrieved party.

Question 31

Parol evidence rule

Answer 31

A rule of evidence that prevents the introduction of oral testimony in a court proceeding which adds to, alters, or varied the terms of a written agreement.

Question 32

Punitive damages

Answer 32

Damage that is awarded by a court in order to punish a party that has violated the law.

Question 33

Statute of frauds

Answer 33

The statute which requires that certain types of contracts be in writing to be enforceable.

Question 34

Substantial performance

Answer 34

The performance of contractual obligations with only minor deviations from the specifications in the contract.

Question 35

Third party beneficiary

Answer 35

A person who is not a party to a contract but who will benefit from the performance of the contract.

Question 36

Undue influence

Answer 36

Influence by which a person is induced to act otherwise than by their own free will or without adequate attention to the consequences.