Test 7

Question 1

1. What are the two parties to a contract called? ____________________________

Answer 1

offeror offeree

Question 2

2. A contract is a ____________________________________________________.

Answer 2

legally enforceable agreement

Question 3

3. UCC stands for ___________________________________________________.

Answer 3

Uniform Commercial Code

Question 4

4. All contracts must have four elements: _______________________________

Answer 4

Agreement, Consideration, Capacity, lawful object

Question 5

5. A failure to preform under a contract is a __________________________.

Answer 5

a breach of contract

Question 6

9. Consideration is a _____________________________________________________.

Answer 6

Bargained-for exchange

Question 7

10. Why aren’t gratuitous promises enforceable? ________________________________.

Answer 7

they lack consideration

Question 8

11. What is one way in which an offer is terminated? ______________________________.

Answer 8

offeree makes counter offer

Question 9

12. The 3 kinds of contracts covered by the statute of frauds are: _______________________ _____________________________, and ___________________________________.

Answer 9

Purchase of land, Purchase of goods $500 or more, Contracts that can not be completed in 1 year

Question 10

13. What is required if the contract is covered by the statute of frauds? __________________ ________________________________________________________________________

Answer 10

Contract must be in writing

Question 11

14. A contract, the terms of which are either written or oral, is called an _______________________________.

Answer 11

express

Question 12

15. A ____________________________ occurs when a spouse who owns a home as separate property dies, leaving behind another spouse who wants to continue to live in the house.

Answer 12

life estate

Question 13

16. In Texas, what adjective precedes the word “Executor” in a will? __________________________________.

Answer 13

Independent

Question 14

17. What does that mean? ______________________________________________________

Answer 14

Free from oversight from the court

Question 15

18. What kind of trust is created if there is a minor child who cannot inherit money until the age of 18? ______________________________________________

Answer 15

contingent

Question 16

19. What is the last page that’s attached to a will called? _______________________________________________

Answer 16

self proving affidavit

Question 17

20. MPOA stands for _____________________________________________________.

Answer 17

Medical Power of Attorney

Question 18

21. To give someone the power to make financial decisions for you, you execute a ________________________________________________________________.

Answer 18

durable power of attorney

Question 19

22. In Texas, ___ witnesses must sign the will and they must be at least _____ years of age.

Answer 19

2 14

Question 20

23. What is an “in terrorem” clause? ______________________________

Answer 20

a no contest clause

Question 21

24. A provision in a will that indicates that a beneficiary cannot grant his interest in a future inheritance to a creditor is called a ______________________________________.

Answer 21

spendthrift provision

Question 22

25. If a person dies without a will, that person is said to have died ____________________.

Answer 22

intestate