Unit 11

Question 1

Contract

Answer 1

Voluntary legally enforceable promise between two competent parties to perform some legal act in exchange for consideration.

Question 2

Express contract

Answer 2

Created by words. Oral or written.

Question 3

Implied

Answer 3

the agreement of the parties is demonstrated by their acts and conduct.

Question 4

Bilateral contract

Answer 4

Contract has two promises being exchanged.

Question 5

Unilateral contract

Answer 5

contract is based on only one party promising to perform.

Question 6

Executory contract

Answer 6

one or both parties still have an act to perform.

Question 7

Executed contract

Answer 7

all parties have completely fulfilled their obligations.

Question 8

Mutual assent

Answer 8

There must be complete agreement between the parties about the purpose and terms of the contract.

Question 9

Counteroffer

Answer 9

Proposing any deviation from the terms of the offer constitutes a rejection of the original offer and becomes a new offer.

Question 10

Parole evidence rule

Answer 10

A written contract takes precedence over oral agreements or promises.

Question 11

Time is of the essence

Answer 11

The contract must be performed within a specific time frame. A party who fails to perform on time is liable for breach of contract.

Question 12

Novation

Answer 12

substitution of a new contract in place of the original one. The new agreement may be between the same parties or a new party may be substituted for either.

Question 13

Breach of contract

Answer 13

Violation of any of the terms or conditions without legal reason.

Question 14

Suit for specific performance

Answer 14

the buyer asks the court to force the seller to go through with the sale and convey the property as previously agreed. The buyer may choose to suer damages in which cassette seller is asked to pay for any costs and hardships suffered by the buyer as a result of the sellers breach.

Question 15

Liquidated damages

Answer 15

clause in real estate purchase contract specifies the amount of money to which the seller is is entitled if the buyer breaches the contract.

Question 16

Statute of limitations

Answer 16

State limits the time within which parties can bring legal suit to enforce their rights. In PA it is 4 years from the date the contract is breached.

Question 17

Partial performance

Answer 17

reason for contract termination. acts have not been done or money that is owed is not given.

Question 18

Substantial performance

Answer 18

reason for contract termination. One party did not complete all the details exactly as the contract requires.

Question 19

Impossibility of performance

Answer 19

Act required by the contract cannot legally be accomplished.

Question 20

Rescission

Answer 20

One party may cancel or terminate the contract as though it had never been made. Any money exchanged needs to be returned. Sometime used as a remedy to a breach or with mutual agreement to terminate.

Question 21

Contract forms

Answer 21

preprinted forms that licenses use. They can fill in blanks as long as they do not charge a fee for it. It is illegal for licenses to practice law (criminal offense- 1 year in jail/ 2,500 fine) Changes and additions are usually initialed in the margin or on the wider by both parties when the contract is signed.

Question 22

Plain Language Contract Act

Answer 22

promotes the use of plain language protect consumers from making contracts they do not understand.

• Contracts that borrow money
• buy, lease, or rent personal or real property
• engage in services for cash or on credit for personal, family, or household purposes

Question 23

Uniform Electronic Transaction Act (UETA)

Answer 23

Sets forth basic rules for entering n enforcable contract using electronic means and has been enacted in most states. It removes barriers in electronic commerce that would otherwise prevent enforceability of contracts. UETA validates and effectuates electronic records and signatures in a procedural manner.

• Contract cannot be denied its legal effect just because it is in an electronic form
• a record or signature cannot be denied its legal effect just because it is in an electronic format.
• if a state law requires a signature one a contract an electronic signature is sufficient
• If state law requires a written record an electronic record is sufficient.

Question 24

Electronic signatures in global and national commerce act ( E-sign)

Answer 24

E- sign makes contracts and records legally enforceable regardless of the medium in which they are created.

Question 25

PA Electronic Transaction Act

Answer 25

Facilitate e commerce and protect the rights of consumers in electronic transactions.