Ch 6 - Contract Law Flashcards Preview

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Flashcards in Ch 6 - Contract Law Deck (23)
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1

The exchange of the parties made at the same time

Present consideration

2

To displace in favor of another

Supercede

3

Oral declaration; word-of-mouth

Parol

4

When a contract is required by law to be in writing, the authority of an agent to enter into such a contract on behalf of the principal must also be in writing

Equal dignities rule

5

The legal means of canceling a contract and restoring the parties to the original positions

Rescind

6

A legally enforceable agreement to do (or not to do) a specific thing

Contract

7

An act intended to deceive for the purpose of inducing another to part with something of value

Fraud

8

A body of law that codifies all law relating to commercial transactions to make states law uniform

Uniform commercial code (UCC)

9

True or false:

The earnest money The buyer may put down is not the consideration necessary to make the contract valid

True

10

True or False:

The tenant still has the right to rescind the contract due to innocent misrepresentation

True

11

True or false:

A written contract is not supersede an oral contract

False - A written contract will always supersede an oral one

12

True or false:


Love and affection do not count as present consideration

True

13

True or false:

People of unsound mind who have been declared incompetent by a judge may not make a valid contract

True

14

True or false:

The existence of mutual agreement is evidenced by the words and acts of the parties indicating that there is a valid offer and an unqualified acceptance

True

15

True or false:

An individual can give another person the power to act on his behalf through power of attorney

True

16

What are the three alternatives for discharge of contract that are open to parties of a contract?

- assignment
- novation
- supervening illegality

17

What are four ways to describe the validity of a contract?

Valid
Void
Voidable
Vnenforceable

18

What are three standards in deciding the competency of those entering a contract?

- minors
- intoxication
- unsound mind

19

Under certain circumstances, the ______ Permits oral evidence to complete an otherwise incomplete or ambiguous written contract

Parole evidence rule

20

Under the _________, if neither possession nor title has passed and there is material destruction to the property, the seller cannot enforce the contract and the purchaser is entitled to his money back

Uniform vendor and purchaser risk act

21

When could any of these six alternatives be used by a wrong or innocent party:

- accept partial performance
- rescind the contract unilaterally
- sue for specific performance
- sue for money damages
- accept liquidated money damages
- mutually rescind the contract

In the event of breach of contract

22

Upon receiving an offer, what three options does an offeree have?

- agree to it
- reject it
- make a counteroffer

23

What are the five legal requirements to make a contract legally valid?

- legally competent parties
- mutual agreement
- lawful objective
- consideration or cause
- contract in writing when required by law