Final

Question 1

liquidated debt/damages

Answer 1

the amount has been agreed on, settled, determined exactly

Question 2

accord and satisfaction

Answer 2

common means of settling disputed claim, whereby debtor offers to pay a lesser amount than creditor wants to be owed

Question 3

promissory estoppel

Answer 3

used to enforce promise when promisee justifiably relied on amount of funds to another person on demand or specified date

Question 4

usury

Answer 4

charging an illegal rate of interest

Question 5

covenant to not compete

Answer 5

contractual promise of one party to not conduct business similar to that of another party for a period of time within a geographical area

Question 6

battle of the forms

Answer 6

two merchants exchange separate standard forms containing different contract terms. contract is valid unless

1) original offer expressly limited acceptance to its terms
2) new/changed terms materially alter after contract
3) offeror objects to new or changed terms within reasonable period of time

Question 7

unilateral mistake

Answer 7

mistake occurs when only one party to contract is mistaken as to material fact

Question 8

bilateral mistake

Answer 8

both parties of a contract are mistaken about same material fact

Question 9

elements of fraudulent misrepresentation

Answer 9

1) misrepresentation of material fact must occur
2) must be an intent to deceive
3) innocent party must justifiably rely on misrepresentation

Question 10

latent defect

Answer 10

defect is not obvious, cannot be readily obtained

Question 11

prenuptial agreements

Answer 11

in the event of divorce, contract outlines which party is in possession of what, must be in writing to be enforced

Question 12

parol evidence rule

Answer 12

prevents a party from presenting extrinsic evidence that discloses ambiguity and clarifies/adds to written terms of contract

Question 13

types of damages

Answer 13

nominal
compensatory
punitive
consequential

Question 14

cover and mitigation of damages

Answer 14

requirement that a plaintiff do whatever is reasonable to minimize damages caused by defendant’s breach of contract

Question 15

nominal damages

Answer 15

small monetary award granted t plaintiff when no actual damage was suffered

Question 16

liquidated damages

Answer 16

amount stipulated in contract that the parties to the contract believe to be reasonable estimation of the damages that will occur in the event of a breach

Question 17

specific performance

Answer 17

equitable remedy in which a court orders parties to perform as promised in the contract, remedy normally is granted only when legal remedy is inadequate

Question 18

antitrust

Answer 18

fair competition, prevents anticompetitive practices and unlawful restraints