Contracts

Question 1

A contract whose terms are specifically stated orally or in writing

Answer 1

Express contract

Question 2

A contract whose terms are not specifically stated, but some or all of the terms are inferred from conduct of parties and/or circumstances

Answer 2

Implied contract

Question 3

A contract whose terms have been fully performed

Answer 3

Executed contract

Question 4

A contract whose terms have not been fully performed by both parties

Answer 4

Executory contract

Question 5

A contract in which one party gives promise for completion of requested act; no contract, unless the promissee undertakes the action

Answer 5

Unilateral contract

Question 6

A contract in which each party exchanges promises, creating a legal obligation for each party

Answer 6

Bilateral contract

Question 7

A contract that is enforceable unless party that has rights pulls out of contract

Answer 7

Voidable contract

Question 8

A contract that is not enforceable by either party

Answer 8

Void contract

Question 9

An offer that is supported by consideration and cannot be revoked before stated time

Answer 9

Option/ option contract

Question 10

A rejection by the offerree coupled with a new offer–terminates an offer

Answer 10

Counteroffer

Question 11

Test that asks “to whom would a reasonable person believe the offer to be directed?”

Answer 11

Objective test

Question 12

An auction in which the auctioneer may withdraw boods before s/he announces completion of sale

Answer 12

“with reserve” **default, unless specified

Question 13

An auction in which goods may not be withdrawn unless no bid made within reasonable time

Answer 13

“without reserve”

Question 14

Fraud that has all 4 elements, with the scienter element being due to a reckless disregard for the truth (rather than intent to mislead)

Answer 14

constructive fraud

Question 15

Any acts or threats of violence or extreme pressure against party or member of party’s family, which in fact deprives party of free will and causes him/her to agree

Answer 15

duress–contract is voidable

Question 16

Unfair persuasion of one person over another which prevents understanding or voluntary action; can occur through dominant person or abuse of fiduciary relationship–usually causes agreement to be voidable

Answer 16

Undue influence

Question 17

An act, promise, or forbearance that is offered by one party and accepted by another as inducement to enter into agrement–requires an exchange of promises

Answer 17

Consideration

Question 18

An implied contract at law, where a court rules that a conract exists even though an element of a contract is missing–used where a promissee has reasonably relied on a promisor’s promise anthat reliance has injured the promissee

Answer 18

Promissory estoppel

Question 19

An agreement between parties in which one or both lack the capacity to contract is void, or in some cases, voidable—element of contract

Answer 19

Legal capacity

Question 20

An incomeptent person whose incompetency is caused by things like compulsive spending disorder

Answer 20

Diminished capacity–contracts are voidable

Question 21

contracts that may not be enforceable due to public policy concerns

Answer 21

illegal contracts

Question 22

Licensing statute that seeks to protect the public from incapable, unskilled, or dishonest persons

Answer 22

Regulatory licensing statute

Question 23

A licensing statute thats primary purpose is to raise revneue for the government

Answer 23

Revenue-seeking statute

Question 24

A contract for greater than the legal interst rate–illegal and not enforceable

Answer 24

Usury contracts

Question 25

Clauses found in contracts in which one party tries to avoid liability for own negligence–generally enforceable, unless tries to excuse potential reckless/intentional behavior

Answer 25

Exculpatory clauses

Question 26

to approve by expressing formal consent/approval

Answer 26

Ratification

Question 27

Statute of frauds only applies to these types of contracts because it is a rule of evidence

Answer 27

Executory contracts

Question 28

Federal law that makes electronic signatures valid like written ones and makes electronic documents as valid as paper ones

Answer 28

E-SIGN Act

Question 29

Computer licenses that the individual or company often buys without seeing or reviewing first–generally found to be enforceable

Answer 29

Shrink-wrap licenses

Question 30

The transfer of a right under a contract by one person to another

Answer 30

Assignment

Question 31

The transfer of duties under a contract

Answer 31

Delegation

Question 32

3rd party beneficiary in which the debtor conracts with a secnd party to pay the debt owed to the crediro–can maitain an action against eithe contracting party

Answer 32

creditor beneficiary

Question 33

A third party beneficiary in which the promisee’s intent is to confer a gift upon third party through promisor’s performance
-can only maintain an action against the primisor (party that will do something, not the one giving the gift)

Answer 33

Donee beneficiary

Question 34

A third party benefiiciary who receives an unintended benefit froma contract.
–s/he obtains NO rights under the contract

Answer 34

incidental beneficiary

Question 35

A condition that must occur before stated promise or duty in contract becomes due

Answer 35

Condition precedent

Question 36

A condition that when it occurs it modifies or takes away a duty specified in a contract
Ex. M agrees to rent N a certain home until M finds a buyer

Answer 36

Condition subsequent

Question 37

An agreement to substittue new performance for the original performance

Answer 37

An accord

Question 38

Performance of the accord

Answer 38

Satisfaction

Question 39

An agreement between 3 parties; the original 2 parties and a new party, where the new party takes the place of one of the original parties to the contract

Answer 39

novation

Question 40

cancellation of a contract whereby parties are placed in a position they wer in before the contract was formed

Answer 40

rescission

Question 41

damages that arise as a consequence of hte breach; only awarded if the damages are forseeable

Answer 41

consequential damages

Question 42

A provision agreed to in a contract to set the amount of damages in advance if a breach occurs

Answer 42

Liquidated damage clause

Question 43

A doctrine that allows a party to either sue at once or wait until after performacne is due when the other party indicates s/he will not perform

Answer 43

Anticipatory repudiation