contracts (exam 2)

Question 1

unilateral contract

Answer 1

contract where one person is making a promise that calls for action

Question 2

bilateral contract

Answer 2

contract based on both parties making promises to another

Question 3

express contract

Answer 3

contract is communicated in writing, orally, or both

Question 4

implied contract

Answer 4

court creates the contract, based on circumstances, to avoid unjust enrichment

Question 5

unjust enrichment

Answer 5

when one party receives a benefit at the expense of another

Question 6

valid contract

Answer 6

enforceable in court

Question 7

voidable contract

Answer 7

one party can get out the contract under certain circumstances

Question 8

void contract

Answer 8

unenforceable in court due to illegal purpose

Question 9

executory contract

Answer 9

contract isn’t fully performed yet

Question 10

written contract

Answer 10

contract is in writing (recommended)

Question 11

oral contract

Answer 11

contract made orally can be valid, but can have interpretation or enforcement problems

Question 12

electronic contract

Answer 12

contract made online

Question 13

offeror

Answer 13

party who makes offer

Question 14

offeree

Answer 14

party who are recipients of offer

Question 15

what’s another word for contract?

Answer 15

agreement

Question 16

elements required for a contract/agreement

Answer 16

offer, acceptance, consideration

Question 17

surrounding circumstances

Answer 17

previous relationships or dealings

Question 18

the parties subsequent conduct

Answer 18

a partys conduct after the contract was made consistent with what they’re claiming in the contract

Question 19

offer

Answer 19

a proposal/invitation by offeror to enter a contract

Question 20

acceptance

Answer 20

one of the offers terms

Question 21

counteroffer

Answer 21

an acceptance that changes an offers terms

Question 22

mutual assent

Answer 22

offeror’s offer+ offerees acceptance of that offer

Question 23

traditional inquiry

Answer 23

did the parties agree to the same thing

Question 24

fraud

Answer 24

misinterpretation or deceit

Question 25

duress

Answer 25

use or threat of harm to health, financial status, or reputation

Question 26

undue influence

Answer 26

abuse of authority, power, or position

Question 27

consideration

Answer 27

required each party to give-up something of legal value

Question 28

damages

Answer 28

money

Question 29

equitable

Answer 29

non-monetary judgement, but may have great economic value

Question 30

compensatory

Answer 30

math calculation based on value of contract; less value of defendants performance

Question 31

consequential

Answer 31

loss based on consequences of defendants performance

Question 32

liquidated

Answer 32

exact amount of damages stated in the contract

Question 33

specific performances

Answer 33

plaintiff wants judgement which orders defendant to perform the contract as agreed

Question 34

reformation

Answer 34

plaintiff seeks judgement which orders change to written contract to correct mistake

Question 35

rescission and restitution

Answer 35

plaintiff requests judgement which requires both parties return any benefit they may have received if voidable contract

Question 36

capacity (voidable contracts)

Answer 36

defendant lacks legal ability to enter into contract

Question 37

legality (void contract)

Answer 37

contract must have a legal purpose otherwise it is unenforceable

Question 38

unclean hands

Answer 38

no one can take advantage of his/her own wrong

Question 39

mitigation of damages

Answer 39

plaintiff has obligation to make reasonable efforts to reduce damages

Question 40

discharge

Answer 40

no further performance required by one or both parties to the contract