Unit 2 Vocab

Question 1

Contract

Answer 1

a legally enforceable agreement

Question 2

Express Authority

Answer 2

the rights of an agent stated in the agreement creating an agency

Question 3

Express Goods

Answer 3

those goods which are at the time of the contract in existence and owned by the seller

Question 4

Express Warranties

Answer 4

the actual and definite statement of a seller either orally or in writing at the time of the sale

Question 5

Implied Goods

Answer 5

the goods specified by the buyer and seller

Question 6

Implied Authority

Answer 6

an agent’s authority to do things to carry out express authority

Question 7

Implied Warranties

Answer 7

protections imposed by law arising automatically because the sale has been made

Question 8

Implied Contract

Answer 8

a legally enforceable agreement in which the terms are set by the contract as to how performance is to be rendered

Question 9

Bilateral Contract

Answer 9

a legally enforceable agreement which consists of mutual promises to perform future acts

Question 10

Unilateral Contract

Answer 10

a contract formed when an act is done in consideration for a promise

Question 11

Executory Contract

Answer 11

a legally enforceable agreement in which the terms have not been completely executed or fulfilled

Question 12

Executed Contract

Answer 12

a legally enforceable agreement in which the terms have been fulfilled

Question 13

Valid Contract

Answer 13

a contract which is legally enforceable

Question 14

Void Contract

Answer 14

an agreement of no legal effect

Question 15

Voidable Contract

Answer 15

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

Question 16

Unenforceable Contract

Answer 16

an agreement which is not enforceable by law

Question 17

Offer

Answer 17

a proposal to make a contract

Question 18

Offeror

Answer 18

the party to who initiates the offer

Question 19

Offeree

Answer 19

the party whom the offer is made

Question 20

Revocation

Answer 20

Cancellation of an instrument by the maker or drawer; rescinding an offer

Question 21

Acceptance

Answer 21

an agreement to an offer resulting in a contract

Question 22

Rejection

Answer 22

refusal to accept

Question 23

Counteroffer

Answer 23

a change to an original offer that rejects the offer and becomes a new offer

Question 24

Misrepresentation

Answer 24

false statement of material fact

Question 25

Fraud

Answer 25

inducing another contract because of. an intentionally or recklessly false statement of material fact

Question 26

Undue influence

Answer 26

improper influence that is asserted by one dominant person over another with out a threat of harm

Question 27

Fiduciary Relationships

Answer 27

a person in a relationship of trust and confidence

Question 28

Duress

Answer 28

removing one’s free will and obtaining consent by means of threat

Question 29

Minor

Answer 29

those persons under legal age; for most state, the standard is under the age of 18

Question 30

Disaffirmance

Answer 30

election to avoid a voidable contract

Question 31

Ratification

Answer 31

approving of an act which was executed without authority; electing to be bound a voidable contract

Question 32

Consideration

Answer 32

the bargained for exchange in a contract

Question 33

Accord and Satisfaction

Answer 33

and agreement made and executed in satisfaction of the rights one has from a previous contract

Question 34

Promissory Estoppel

Answer 34

an equitable doctrine and substitute for consideration that prevents the promiser from revoking the promise when the promisee justifiably relies to their detriment

Question 35

Statue of Limitations

Answer 35

a law restriction the time within which an action may be brought to court

Question 36

Usurious

Answer 36

exceeding the maximum rate of interest which maybe charged on loans

Question 37

Antitrust Law

Answer 37

law which seek to promote competition among businesses

Question 38

Statue of Fraud

Answer 38

law requiring certain contracts to be in writing to be enforceable

Question 39

Real Property

Answer 39

land and those objects permanently attached to the land

Question 40

Goods

Answer 40

moveable tangible personal property

Question 41

Discharge

Answer 41

any method by which legal duty is extinguished

Question 42

Breach of Contract

Answer 42

failure or refusal to perform contractual obligations

Question 43

Nominal Damages

Answer 43

a small amount awarded when there is a technical breach but no injury

Question 44

Compensatory damages

Answer 44

an award paid to the injured party to cover the exact amount of their loss, but no more

Question 45

Liquidated damages

Answer 45

reasonable damages stipulated in the contract to be paid in the event of a breach

Question 45

Puntitive damages

Answer 45

an award paid to the plaintiff to punish the defendant

Question 46

Rescission

Answer 46

to set aside or cancel a contract

Question 47

Specific performance

Answer 47

a remedy by which the court requires the breaching party to perform the contract

Question 48

Assignment

Answer 48

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

Question 48

Injunction

Answer 48

a judicial order or decree forbidding certain conduct

Question 49

Assignor

Answer 49

the party assigning rights in a contract to a third party

Question 50

Assignee

Answer 50

the party to whom rights in a contract are assigned

Question 51

Creditor Beneficiary

Answer 51

a third party beneficiary owed debt by a party to a contract

Question 51

Third party beneficiary

Answer 51

person not a party to a contract, but whom parties intend to benefit

Question 52

Donee Beneficiary

Answer 52

a third party beneficiary whom no legal duty is owed, and performance is a gift