test 2

Question 1

requirements of a contract

Answer 1

offer
acceptance
consideration
legality
capacity
consent
writing

Question 2

offer

Answer 2

must be clear and definite. Meeting the Minds

Question 3

acceptance

Answer 3

must adhere to offer aka Mirror image rule; or must be reasonable

Question 4

consideration

Answer 4

thing of value and bargained for exchanged

Question 5

legality

Answer 5

subject matter must be legal

Question 6

capacity

Answer 6

age

Question 7

consent

Answer 7

no tricks or force

Question 8

writing

Answer 8

not always

Question 9

quasi contract elements

Answer 9

the plaintiff gave some benefit to the defendant
the plaintiff reasonably expected to be paid
unjust enrichment

Question 10

statements that usually do not constitute an offer

Answer 10

invitations to bargain
price quote
letters of intent
advertisements

Question 11

ways to terminate an offer

Answer 11

revocation
rejection
counter offer
expiration
party who made the offer becomes incapacitated
the subject matter of the offer is destroyed

Question 12

consideration- types of value examples

Answer 12

product
real estate
cash
inaction
action

Question 13

there is no consideration if…

Answer 13

the promise is illusory (if I want to..)
there is a pre-existing duty (lifeguard)
past consideration (completed act)

Question 14

exculpatory clauses

Answer 14

insulates itself from future liability- must be clearly written and readily visible

Question 15

exculpatory clauses cannot:

Answer 15

exclude liability intentional wrongdoing
exclude activities in the public interest
be enforced when there is unequal bargaining power

Question 16

statute of frauds

Answer 16

must be in writing

Question 17

statute of frauds examples

Answer 17

land sale
cannot be performed within a year
debt of another
debts of an estate
marriage contract
sale of goods over $500 or more

Question 18

principal

Answer 18

a person who has someone else acting on their behalf

Question 19

agent

Answer 19

a person who acts on behalf of someone else

Question 20

creation of the agency relationship

Answer 20

the principal and agent muse mutually consent that the agent will act on behalf of the principal and be subject to the principal’s control, therefore establishing a fiduciary relationship

Question 21

consent

Answer 21

an agent has to consent to act of behalf of the principal

Question 22

control

Answer 22

the principal is the one who tells the agent what to do

Question 23

fiduciary relationship

Answer 23

act in good faith, be candid, and always act in their best interests.
the agent must always keep the principal’s secrets

Question 24

an agency relationship does not require:

Answer 24

a written agreement
a formal agreement
compensation

Question 25

gratuitous agent

Answer 25

an agent who is not compensated. in this type of situation, the standard is gross negligence

Question 26

duties of principals to agents

Answer 26

indemnify (pay for) for any reasonable expenses or damages indemnify for tort claims brought by third parties indemnify for attorney's fees cooperate

Question 27

cooperate

Answer 27

do not unreasonably interfere, pay the agent if there is an agreement for payment

Question 28

terminating the agency relationship

Answer 28

1. "term agreement" 2. agency at will. if no agreement, either principal or agent can terminate 3. regardless of the situation, principal or agent can terminate. but if it is wrongful (violates agreement), the wronged party can sue for damages 4. if one party can no longer perform his or her duties, the the relationship ends 5. subject matter of agency relationship is destroyed

Question 29

the principal is liable to a third party for the actions of her agent if

Answer 29

the agent has authority principal ratifies the agent's actions

Question 30

express authority

Answer 30

principal grants authority to agent or the agent reasonably believes he has authority based on the words or actions of the principal

Question 31

implied authority

Answer 31

An Agent that has authority to handle a transaction or project, has the implied authority to do whatever is reasonably necessary to accomplish his task.

Question 32

apparent authority

Answer 32

A Principal can be liable for the unauthorized actions of her Agent if the Principal’s actions or conduct made the third party reasonably believe that the agent has authority

Question 33

ratification

Answer 33

The Principal ratifies the acts of an Agent if he accepts the benefits of an Agent’s actions, or the Principal fails to repudiate the Agent’s actions

Question 34

agent must always...

Answer 34

Disclose who they are acting on behalf of. If she fails do that, then she can be liable for the contractual obligations of the Principal.

Question 35

respondent superior

Answer 35

“let the master answer.” A Principal is liable for the negligent actions of his Agent in a tort case regarding work

Question 36

employee v independent contractor

Answer 36

employer is typically liable for the actions of an employee employer is typically not liable for the action of an independent contractor.

Question 37

types of authority

Answer 37

expressed implied apparent