Chapter 11 - Requirements of Contract

Question 1

Consideration

Answer 1

Inducement, price or promise that causes a person to enter into a contract

Question 2

Value

Answer 2

Legal benefit or receiving something of measurable value

Question 3

Bargained-For Exchange

Answer 3

If you do this, I’ll do that

Question 4

Forbearance

Answer 4

Refraining from something that one has a legal right to do

Question 5

Non-compete Agreement

Answer 5

Agreement where employee promises not to work for a competitor for some time after leaving the company

Question 6

Exculpatory Clause

Answer 6

Contract provision attempting to release one party from liability in the event the other is injured

Question 7

Disaffirm

Answer 7

Give notice of refusal to be bound by an agreement

Question 8

Restitution

Answer 8

A minor who disaffirms a contract must return consideration they have received

Question 9

Fraud

Answer 9

Intending to induce other party into a contract, knowing words are false

Question 10

Three Requirements for Fraud

Answer 10

Intentional Misrepresentation of Fact, Materiality, Justifiable Reliance

Question 11

Rescind

Answer 11

Cancel a contract

Question 12

Unilateral Mistake

Answer 12

When only one party negotiates based on a factual error

Question 13

Mutual Mistake

Answer 13

Occurs when both parties negotiate based on same fundamental error

Question 14

Contracts that must be in writing

Answer 14

Land, paying debt of another, paying debt of an estate, marriage, sale of goods worth $500 or more, agreements that cannot be performed within one year