Definitions for FINAL (from John's summary)

Question 1

Vicarious liability

Answer 1

what the business is liable for when an employee makes a mistake

Question 2

Caveat emptor

Answer 2

buyer beware

Question 3

Privity

Answer 3

how do you become a party to a contract
you must be an offeror or offeree and you must give up consideration

Question 4

Estoppel

Answer 4

if you homd someone out to be a partner, or if they claim to be a partner and you don’t deny this
Precluded (impossible) from denying

Question 5

novation

Answer 5

method of discharge where there is a replacement of one contract with another, wherein the parties have changed
new partner takes on responsibility of the leaving individuals debt

Question 6

Fiduciary duty

Answer 6

requiring the utmost good faith - extreme loyalty
partners owe this in their partnership
severely punished by governing body if breached

Question 7

Insolvency

Answer 7

unable to pay debts when they are due

Question 8

Gate keeper liabilities

Answer 8

attempt to control wrong doings of companies by making the directors liable through duties
Liabilities consist of financial and penal nature for directors

Question 9

Derivative action

Answer 9

shareholder can sue the board of directors in name of the compnay

Question 10

revocation

Answer 10

an offeror may withdraw an offer at any time before acceptance - this prevents acceptance, even when a promise has been made to hold the offer for a specified time

Question 11

Gratuitous promise

Answer 11

A promise made without consideration - because no consideration the contract is void

Question 12

Duress

Answer 12

illegitimate pressure (physical or economical force on a party to enter into a contract)

Question 13

Dischaarge

Answer 13

cancel an obligation and make a contract null and inoperative

Question 14

Bailment

Answer 14

one party takes possession of personal property owned by another party