Exam 3 CHP 10

Question 1

An agreement, upon sufficient consideration, to do or not to do a particular thing.

Answer 1

Contract

Question 2

It is a key element common in all contracts, contract center.

Answer 2

Promise

Question 3

Withdrawal of the offer.

Answer 3

Revocation

Question 4

A form of rejection. A proposal by the offeree to change the terms of the original offer.

Answer 4

Counteroffer by offeree

Question 5

A contract with an exchange of promises.

Answer 5

Bilateral contract

Question 6

A contract where there is acceptance by performance.

Answer 6

Unilateral contract

Question 7

Something of value or something bargained for in exchange for a promise, that is, both parties to a contract get something and give up something.

Answer 7

Consideration

Question 8

Legal ability to create a contract.

Answer 8

Contractual capacity

Question 9

Status of a person under the legal age of majority. Most of the time 18.

Answer 9

Minority status

Question 10

When one party to the contract has the right to avoid a legal obligation.

Answer 10

Voidable contract

Question 11

A contract that does not exist at law, and so cannot be enforced.

Answer 11

Void contract

Question 12

To approve and give formal sanction to; confirm. Example: A minor that reaches the age of majority.

Answer 12

Ratification

Question 13

“Of unsound mind”, This phrase was first used in thirteenth-century English law to describe people afflicted by madness, the loss of memory or ability to reason.

Answer 13

Non compos mentis (NCM)

Question 14

For a contract to be valid, its subject matter must be lawful.

Answer 14

Legality of contract

Question 15

Charges above the maximum allowed interest rates are called…

Answer 15

Usury

Question 16

Contracts legal when they were made, but a change in law made them unenforceable.

Answer 16

Unenforceable contracts

Question 17

Releases one party from the consequences brought about by their wrongful acts or negligence.

Answer 17

exculpatory agreements

Question 18

A contract that is grossly unfair to an innocent party, the courts, inequity, will not enforce it.

Answer 18

Unconscionable contracts

Question 19

The customer sued a fridge company for the overcharging of a sale of a fridge.

Answer 19

Jones v. Star Credit case

Question 20

A seller, or former employee, may not conduct business to compete against a previously sold business or become employed at a competitor’s business, respectively.

Answer 20

Covenant not to compete

Question 21

Which state prohibits covenant not to compete?

Answer 21

California

Question 22

A person who enters into an agreement without understanding key information about the real nature of the transaction.

Answer 22

Genuiness of consent

Question 23

A party enters a contract with false information or accidentally makes an error in a significant matter.

Answer 23

Mistake

Question 24

The effort of a party to induce another party to enter into a contract based on false information.

Answer 24

Fraud

Question 25

Can be intentional or based on negligence, incorrect information is represented.

Answer 25

Misrepresentation

Question 26

A person enters into a contract because they are so dominated by another person, or have so much trust in that person, they are subject to improper persuasion.

Answer 26

Undue influence

Question 27

Woman sues a dance instructing company over manipulation of sales over many years. Woman wins.

Answer 27

Vokes v. Murray Case

Question 28

3-days to revoke contract by buyer

Answer 28

Texas rule under HSSA (Home Solicitation Sales Act)

Question 29

6-days to revoke contract by buyer

Answer 29

Texas timeshare Act

Question 30

When contracts must be evidenced by a writing to be enforceable.

Answer 30

Statute of frauds (real estate contracts, promises made in consideration of marriage)

Question 31

Restricts the use of oral statements.

Answer 31

Parol Evidence Rule

Question 32

The contract basically has been fulfilled, and payments must be made.

Answer 32

Substantial performance

Question 33

Party to a contract does not perform as required v. party has done substantially less than the requirements of the contract.

Answer 33

Breach v. Material Breach

Question 34

When parties are free to agree to modify or terminate a contract.

Answer 34

Discharge of contracts

Question 35

Is called a contract, but not a literal contract. To give relief to innocent parties or to prevent injustice, even though no true contract exists. Imposed by the law without a contract.

Answer 35

Quasi contract

Question 36

To avoid injustice. Something of value has been provided, but there was no contract or completion of contract.

Answer 36

Quantum meruit

Question 37

Parties agree that the contract should be terminated without performance.

Answer 37

Rescission

Question 38

An agreement by the parties to offer and accept performance that differed from the original agreement.

Answer 38

Accord

Question 39

When an event occurs that makes performance impossible.

Answer 39

Impossibility

Question 40

Damages that are an amount specified in the contract to be paid in the event of a breach.

Answer 40

Liquidation damages

Question 41

Damages rewarded when a plaintiff suffers a breach of contract but does not suffer a measurable economic loss.

Answer 41

Nominal damages

Question 42

These damages are usually awarded when the wrongdoer's conduct has been willful or malicious and fraud was involved.

Answer 42

Punitive damages

Question 43

Reasonable efforts to lessen the losses that may be incurred.

Answer 43

Mitigation of damages

Question 44

Remedies such as specific performance or an injunction.

Answer 44

Equitable remedies

Question 45

An order of the court requiring a party who created a wrong to perform the obligations promised in a contract.

Answer 45

Specific performance for unique items

Question 46

If one party has unjustly enriched themself at the expense of another party, the court can order payment to be made.

Answer 46

Restitution

Question 47

A contract that expects actions rather than being expressed by the parties.

Answer 47

Implied contract

Question 48

A contract that is based around a written or oral expression of intent by the parties to enter into a legally binding agreement.

Answer 48

Expressed contract

Question 49

A promise to do something or to refrain from doing some specific thing.

Answer 49

Offer

Question 50

These damages are to allow the party suffering the breach to recover costs incurred as a result of relying on the promise of the other party.

Answer 50

Compensatory damages