Unit 2: Contract law

Question 1

consideration

Answer 1

one element required if the contract is to be enforceable. consideration is the payment for a promise; does not have to be monetary, it can be anything of value to the contracting parties.

Question 2

Verdadeiro ou Falso:

An implied offer is one that is clearly made in writing or in words.

Answer 2

False

Question 3

Verdadeiro ou Falso: The act of accepting an offer is known as consideration.

Answer 3

False

Question 4

V/F: Fraud in the inducement can be used as a defence where one person deliberately causes another person to believe something that is not true in order to get that person to agree to a contract or to do some act that they otherwise would not have done.

Answer 4

True

Question 5

the action of agreeing to an offer, plan or suggestion etc

Answer 5

acceptance

Question 6

an agreement which requires that any party to that agreement must obey the terms of that agreement

Answer 6

binding

Question 7

an obligation, condition or duty that has to be carried out under a contract

Answer 7

term

Question 8

a negotiated and usually legally binding arrangement between two or more parties; a contract

Answer 8

agreement

Question 9

the person to whom an offer is made

Answer 9

offeree

Question 10

the action of communicating the terms and conditions of a possible agreement to the party with whom you would like to make that agreement

Answer 10

offer

Question 11

the person who makes an offer

Answer 11

offeror

Question 12

payment made in exchange for performance of a contract; something of value given by one party to another in order to induce (=persuade, encourage, convince) the other to contract

Answer 12

consideration

Question 13

legally acceptable and enforceable (=possible to make people obey it); legally binding

Answer 13

valid

Question 14

V/F: A typical consideration clause will list the purchase price paid for the goods or service at issue.

Answer 14

True

Question 15

V/F: Confidentiality clauses restrict parties from entering into future agreements with third parties.

Answer 15

False

Question 16

V/F: An assignment clause outlines the task given by one party to another.

Answer 16

False

Question 17

V/F: A severability clause enables a contract to survive even if one provision has been found unenforceable.

Answer 17

True

Question 18

to ascertain the amount of damages

Answer 18

to calculate the total sum of the compensation award

Question 19

a material breach of contract

Answer 19

a significant violation of the contract

Question 20

supersedes any previous agreements

Answer 20

replaces or overrides (=cancels) any earlier agreements

Question 21

notice of default

Answer 21

notification of a failure to perform obligations under a contract

Question 22

to make legal agreement or decision lose its legal force

Answer 22

nullify

Question 23

a clause stating that the contract in question is the final version and nothing that was said or written earlier (eg during the negotiations) can change any of the terms

Answer 23

entire agreement

Question 24

standard wording in a contract or other legal document

Answer 24

boilerplate

Question 25

the importance given to an organization, a person or a thing

Answer 25

status

Question 26

used to emphasize something written in a document

Answer 26

hereby

Question 27

What is the merger clause in a contract?

Answer 27

a clause stating that neither party can alter the contract’s written terms based on earlier agreements not written into the final, written contract

Question 28

Complete the rules: If you use a form, don’t leave anything blank.

Answer 28

If a particular section does not apply to you, put XXs through it and each party can initial it.

Question 29

Vocabulary check: “to extend to”

Answer 29

to be applicable to

Question 30

Vocabulary check: “to comply with”

Answer 30

to satisfy the requirements of

Question 31

Vocabulary check: “with respect to”

Answer 31

concerning; about

Question 32

Vocabulary check: “to arise”

Answer 32

(of a problem, opportunity, or situation) to emerge; to become apparent; to begin

Question 33

Vocabulary check: “to issue”

Answer 33

to supply or distribute something

Question 34

Vocabulary check: “to fulfil”

Answer 34

to perform and complete a contract term or contract

Question 35

Vocabulary check: “to furnish”

Answer 35

to make available

Question 36

Duress and Undue influence

Answer 36

types of contract defences, defences to a contract, or defences to contract formation

Question 37

Duress

Answer 37

When, if at the time of signing a contract or entering into an agreement, I’m under immediate physical threat or danger (ex: someone could hold a gun to my head and say sign this contract).
Under that situation the contract is unenforceable and the defence would be duress

Question 38

Undue influence

Answer 38

Where a professional abuses their professional relationship with me, to persuade me to enter into a contract that otherwise no reasonable person would have entered into.

Question 39

Termination

Answer 39

contract clause.
A termination clause is the clause in a contract which outlines the circumstances under which the contract will be terminated.

Question 40

Severability

Answer 40

contract clause.
Severability says that it’s the clause which states that if for some reason one of the contract clauses, part of the contract is unenforceable the rest of the contract still stands. So the rest of the contract will still be valid.

Question 41

Costs and consideration

Answer 41

If for some reason this contract then goes to court, if there’s a breach of the contract, if it’s a subject of litigation, then one side is going to have to pay and what they have to pay is costs and costs refer to all legal fees that are incurred during a case.

Question 42

Consideration

Answer 42

Is what induces one party to enter into a contract but usually, generally speaking we’re talking about money. And the consideration clause in the contract is the clause in the contract which details payment. The price of the contract.

Question 43

We will compensate for all losses ________.

Answer 43

incurred

Question 44

The existence of the ________ clause leads this court to rule that the provision in question should be severed from the dispute resolution clause and that the parties should be compelled to arbitration.

Answer 44

severability

Question 45

Because contracts for the sale of real estate must be in writing in Pennsylvania, the ________ was not enforceable.

Answer 45

oral contract

Question 46

When there has been a breach of contract, the ________ often seeks remedies available under the law.

Answer 46

non-breaching party

Question 47

An absolute prohibition against ________ is not acceptable to the supplier.

Answer 47

assignment

Question 48

If A contracts with B to wash his car for him for $100, A can later assign the benefits of the contract (the right to be paid $100) to C. In this scenario, A is the ________.

Answer 48

assignor

Question 49

If A contracts with B to wash his car for him for $100, A can later assign the benefits of the contract (the right to be paid $100) to C. In this scenario, C is the ________.

Answer 49

assignee