chapter 13

Question 1

contract

Answer 1

a promise or set of promises for the breach of which the law gives a remedy or the preformance of which the law in some way recognizes a duty

Question 2

covenant not to compete

Answer 2

types of employment contract

Question 3

agreement

Answer 3

consists of an offer by one party

Question 4

offeror

Answer 4

party that intiatiate contract

Question 5

offeree

Answer 5

party who agrees to contract terms

Question 6

consideration

Answer 6

bargained-for exchanged or what each party gets in exchange for his or her promise uner the contract

Question 7

contractual capacity

Answer 7

the legal ability to enter into a binding agreement

Question 8

lack of genuine assent

Answer 8

a contract that isnt entered into freely by both parties

Question 9

uniform commercial code (UCC)

Answer 9

set of commercial laws that could be applied to all states

Question 10

bilateral contract

Answer 10

promise for a promise

Question 11

unilateral contract

Answer 11

promise for an action

Question 12

express contracts

Answer 12

terms set forth in wrotten or spoken words

Question 13

implied contracts

Answer 13

arise from the conduct of parties

Question 14

quasi-contracts

Answer 14

implied-in-law contracts but they are not actually contracts

Question 15

valid

Answer 15

a contract that contains all the legal elements set forth in the beginning of this chapter

Question 16

unenforceable

Answer 16

when a law prohibits the courts from enforcing the contract

Question 17

void

Answer 17

not a contract at alll because the object is illegal

Question 18

voidable

Answer 18

a contract that one or both parties has the ability to either withdraw from the contract or enforce it

Question 19

execcuted

Answer 19

all the terms are fully preformed

Question 20

executory

Answer 20

not all terms are preformed

Question 21

formal contracts

Answer 21

have a special form or must be created in a specific manner

Question 22

recognizance

Answer 22

arises when a p[erson acknowledges in court that he or she will preform some specified act or pay a price upon failure to do so

Question 23

latter of credit

Answer 23

an agreement by the issuer to pay another party a sum of money on receipt of an invoice and other documents

Question 24

negotiable instruments

Answer 24

unconditional written promises to pay the holder a specific sum of money on demand or at a certain time

Question 25

informal contract

Answer 25

a contract that is not formal (simple)

Question 26

simple contract

Answer 26

an informal contract

Question 27

plain-meaning rule

Answer 27

states that if a writing, or term in question, appears to be plain and unambigous on its face, we determine its meaning from just "the four corner" of the document , without resorting to outside evidence, and give the words their ordinary meaning.