R7

Question 1

most important fact in determining if someone is an independent contractor

Answer 1

can they control the work performed? employer has right to control which work is performed but has little control over the manner in which work is performed

Question 2

power of atourney

Answer 2

principals written authorization granting an agent authority to enter into binding contracts on principals behalf – may (and usually does) limit agent’s authority to specific transactions

Question 3

respondeat superior

Answer 3

principal (including corporation) can be liable for employee’s tort committed within scope of employment

Question 4

duties of principal to agent

Answer 4

compensation, reimbursement/indemification, remedies of the agent

Question 5

when does statute of limitations begin

Answer 5

from date of breach of contract

Question 6

rescission of a contract?

Answer 6

undoes a contract and restores the parties to the positions thy would have been in if no contract was made

Question 7

specific performance

Answer 7

a court order to perform the terms of the contract (ex: contract for sale of patent may be required to be enforced)

Question 8

Once an undisclosed principal becomes known to the third party, who can the third party hold liable?

Answer 8

the agent and or the principal

Question 9

what mistake will make a contract entirely voidable

Answer 9

A mutual mistake of a material fact will make a contract voidable at the option of the adversely affected party.

Question 10

in sale on approval, when does risk of loss transfer

Answer 10

risk of loss passes to the buyer upon APPROVAL of the goods (i.e after trial period)

Question 11

how/when is an express warranty created

Answer 11

part of the seller’s description of the goods as part of the basis of bargain

• may be oral or written

like dark blue pen that will have ink that lasts a year, the buyer expects that to be true