Quiz 2 Study Guide

Question 1

An agreement to an offer resulting in a contract

Answer 1

Acceptance

Question 2

That which the promisor demands and receives as the price for a promise

Answer 2

Consideration

Question 3

An agreement between two or more competent persons which is enforceable by law

Answer 3

Contract

Question 4

A contract in which the parties express their intentions, either orally or in writing, at the time of the agreement

Answer 4

Express contract

Question 5

Those contracts which must be in special form or produced in a certain way, such as under seal.

Answer 5

Formal contract

Question 6

One in which the terms of the contract are implied by acts or conduct of the parties

Answer 6

Implied contract

Question 7

A proposal to make a contract

Answer 7

Offer

Question 8

The person to whom an offer is made

Answer 8

Offeree

Question 9

The party who initiates, or makes, an offer.

Answer 9

Offeror

Question 10

An agreement which at the current time is not enforceable by law

Answer 10

Unenforceable contract

Question 11

A contract which will be enforced by the court

Answer 11

Valid contract

Question 12

An agreement of no legal effect

Answer 12

Void contract

Question 13

A contract which would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties

Answer 13

Voidable contract

Question 14

An intended acceptance which changes or qualifies an original offer and in effect, rejects that offer and becomes a new offer

Answer 14

Counteroffer

Question 15

A means of removing one’s free will, obtaining consent by means of a threat to do harm to the person, his family, his property, or his earning power

Answer 15

Duress

Question 16

The intentional or reckless false statement of a material fact, upon which the injured party relied, which induced the injured party to enter into a contract, to his or her detriment

Answer 16

Fraud

Question 17

Stating an untrue fact

Answer 17

Misrepresentation

Question 18

Refusal to accept

Answer 18

Rejection

Question 19

The annulment or cancellation of an instrument, act or promise by one doing or making the offer

Answer 19

Revocation

Question 20

Improper influence that is asserted by one dominant person over another, without the threat of harm.

Answer 20

Undue influence

Question 21

The repudiation of, or election to avoid, a voidable contract

Answer 21

Disaffirmance

Question 22

Those persons under legal age; by most states (but not all), the standard is under the age of eighteen

Answer 22

Minor

Question 23

Items, required or proper and useful, for sustaining a human being at an appropriate living standard (examples: food, clothing and shelter)

Answer 23

Necessaries

Question 24

Conforming an act which was executed without authority or an act which was voidable

Answer 24

Ratified (ratification)

Question 25

Exceeding the maximum rate of interest which may be charged on loans.

Answer 25

Usury (usurious)

Question 26

A statute originally enacted by English Parliament, and now enacted in some form in all the American states, listing certain types of contracts which could only be enforced if in written form

Answer 26

Statute of Frauds

Question 27

The party to whom the assignment is made

Answer 27

Assignee

Question 28

A means whereby one party in a contract conveys rights to another person, who is not a party to the original contract

Answer 28

Assignment

Question 29

The party making the assignment

Answer 29

Assignor

Question 30

The substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it

Answer 30

Novation

Question 31

Person not party to a contract, but whom parties intended to benefit

Answer 31

Third-party beneficiary

Question 32

A permanent judicial order or decree forbidding the performance of a certain act.

Answer 32

Injunction

Question 33

A breach of contract by a professional person; failure to perform a professional service with the ability and care generally exercised by others in the profession

Answer 33

Malpractice

Question 34

A contract remedy by which the court requires the breaching party to perform the contract.

Answer 34

Specific performance

Question 35

A law that restricts the period of time within which an action may be brought to court

Answer 35

Statute of Limitations

Question 36

It’s whatever the promisor demands and receives as the price for a promise.

Answer 36

Consideration

Question 37

Charitable contributions (pledges)

Answer 37

Voluntary subscriptions

Question 38

Judgments or liens

Answer 38

Debts of record

Question 39

Substitute for consideration when another acts in reliance of promisor’s promise

Answer 39

Promissory estoppel

Question 40

It’s a contract law concept devised to stop entities from going back on promises, even if not written in a contract.

Answer 40

Promissory Estoppel