Chapter 3

Question 1

What is a contract?

Answer 1

A voluntary exchange of promises or commitments between parties that are legally enforceable in court.

Question 2

What is the objective test for a contract?

Answer 2

Whether a reasonable person would believe that the parties intended to enter into a contract.

Question 3

Who is offeror and offeree in a self-service store

Answer 3

Customer is the offeror and cashier is the offeree.

Question 4

Who is the offeree in an internet transaction?

Answer 4

The customer.

Question 5

What is a standard form contract?

Answer 5

Contract that is offered to anyone.

Question 6

What is an option

Answer 6

A separate contract where the offeror is paid to hold an offer open for acceptance for a specified period.

Question 7

What is consideration?

Answer 7

The price for which the promise of another is bought.

Question 8

When will the courts ases the aqequate nature of fair value?

Answer 8

When there is suspicion of fruad?

Question 9

What is Quantum meruit

Answer 9

Reasonable payment for services rendered.

Question 10

What is the principle of equitable estoppel

Answer 10

Courts provide equitable relief when one person asserts facts or makes gratuitous promises, and another relies on those statements to their detriment.

Question 11

What is injurious reliance?

Answer 11

Allows an injured party to force the promisor to perform the promise.

Question 12

What have courts outlined as necessaries for children?

Answer 12

Food, clothing, lodging, medical attention, legal advice and transportation.

Question 13

What is the difference between a void contract and voidable contract

Answer 13

Void contract was null from its inception, voidable may be terminated by either party.

Question 14

What are the qualities to prove diminshed contractual capacity?

Answer 14

That you had diminished capacity and the other party knew.

Question 15

What is privity of contract rule?

Answer 15

That a contract does not confer any benefits or place any obligations on a third party.

Question 16

What is a vicarious performace?

Answer 16

Situation where a party to a contract obtains someone else to carry out their duties.

Question 17

What are choses in action?

Answer 17

Rights to intangible property.

Question 18

What are choses in possession?

Answer 18

Rights to tangible property.

Question 19

What are the three types of contract intrepretations?

Answer 19

Literal or plain meaning
Liberal approach
Contra proferentum- means against the party who suggested the term.
Courts use literal or liberal.

Question 20

What is the parol evidence rule?

Answer 20

A term that was previously agreed upon can not be included in the written contract.

Question 21

What rule do courts fall back on when the contract is vague?

Answer 21

Contra preoferentum.

Question 22

What is misrepresentation?

Answer 22

When one party induces another party to enter into an agreement by making a material pre-contractual statement or fact that is false.

Question 23

Misrepresentation may result in what consequences?

Answer 23

Rescission: Contract is voidable at the option of the victim.
Restitution: giving back benefits already received under the contract.
Damages in the form of monetary compensation.

Question 24

What is undue influence

Answer 24

Improper use by one person of their power and must be of a degree to rob the former of his or her free wil.

Question 25

What is duress?

Answer 25

Actual or threatened violence as a means of coercing a party to enter into a contract.

Question 26

What happens to a party that performs their end of the contract late?

Answer 26

They may be liable for any losses that occured because of the lateness.

Question 27

What is a discharge condition subsequent?

Answer 27

Contract states that the agreement will be terminated if a certain event occurs.

Question 28

What is discharge condition of rescission?

Answer 28

Parties agree to bring their contract to an end

Question 29

What is accord and satisfaction

Answer 29

Parties agree to substitute a new contract and release the old one.

Question 30

What is novation?

Answer 30

Parties agree to make substantial changes to the terms of a contract. New contract replaces old one.

Question 31

What is the doctrine of frustration?

Answer 31

Excuses a party from performance when external circumstances make performance impossible or circumstances have changed substantially.

Question 32

When is the buyer able to recover a deposit from a frustrating event?

Answer 32

When they have received no benefit.

Question 33

Can a person leave a contract when their a major breach or minor breach?

Answer 33

Can leave when there is a major breach but stuck when there is a minor breach.

Question 34

What is express repudiation?

Answer 34

One party declares that they will not perform under the contract

Question 35

What is implied repudiation

Answer 35

Must be continued failure to meet the requirements of a breach of contract.

Question 36

What is the most common remedy for breach of contract?

Answer 36

Damages based on losses or profits of defendant.

Question 37

What is an injunction

Answer 37

Court order restraining the party from acting in a particular manner .

Question 38

What is an interlocutory injuction

Answer 38

Temporary restaining order to limit the harm done pending resolution of a dispute at a trial.

Question 39

What are the two types of ILLEGAL contracts by common law?

Answer 39

Agreements made to break an existing contract with someone else. Agreements where one party undertakes to release the other of any damages committed by wrongdoings of the other.