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Business Law 1 > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

ability to understand that a contract is being made and to understand its general meaning

A

contractual capacity

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2
Q

original positions of the parties

A

statue quo ante

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3
Q

things indispensable or absolutely necessary for the sustenance of human life

A

necessaries

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4
Q

remedy by which a written instrument is corrected when it fails to express the actual intent of both parties because of fraud, accident, or mistake

A

reformation

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5
Q

making a false statement of a part or existing fact, with knowledge of its falsity or with reckless indifference as to its truth, with the intent to cause another to rely thereon, and such person does rely thereon and is harmed thereby

A

fraud

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6
Q

relationship in which, because of the legal status of the parties or their respective physical or mental conditions or knowledge, one party places full confidence and trust in the other

A

confidential relationship

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7
Q

influence that is asserted upon another person by one who dominates that person

A

undue influence

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8
Q

threat of physical harm to person or property

A

physical duress

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9
Q

threat of financial loss

A

economic duress

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10
Q

conduct that deprives the victim of free will and that generally gives the victim the right to set aside any transaction entered into under such circumstances

A

duress

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11
Q

promise or performance that the promisor demands as the price of the promise

A

consideration

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12
Q

refraining from doing an act

A

forbearance

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13
Q

promise that in fact does not impose any obligation on the promisor

A

illusory promise

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14
Q

cross out of part of an instrument or a destruction of the instrument, whether by act of party, upon breach by the other party, or pursuant to agreement or decree of court

A

cancellation provision

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15
Q

agreement among creditors that each shall accept a part payment as full payment in consideration of the other creditors doing the same

A

composition of creditors

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16
Q

something that has been performed in the past and which therefore, cannot be consideration for a promise made in the present

A

past consideration

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17
Q

doctrine that a promise will be enforced although it is not supported by consideration when the promisor should have reasonably expected that the promisor would induce action or forbearance of a definite and substantial character on the part of the promised and injustice can be avoided only by enforcement of the promise

A

promissory estoppels

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18
Q

equally guilty, used in refernce to a transaction as to which relief will not be granted to either party because both are equally guilty or wrongdoing

A

in pari delicto

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19
Q

absence of knowledge of any defects or problems

A

good faith

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20
Q

contract offered by a dominant party to a party with inferior bargaining power on a take it or leave it basis

A

contract of adhesion

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21
Q

certain objectives relating to health, morals, and integrity of govt that the law seeks to advance by declaring invalid any contract that conflicts with those objectives even though there is no statute expressly declaring such a contract illegal

A

public policy

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22
Q

any plan by which a consideration is given for a chance to win a prize, it consists of three elements, there must be a payment of money or something of value for an opportunity to win, a prize must be available, and the prize must be offered by lot or chance

A

lottery

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23
Q

lending money at an interest rate that is higher than the maximum rate allowed by law

A

usury

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24
Q

statute that, in order to prevent fraud through the use of perjured testimony, requires that certain kinds of transactions be evidenced in writing in order to be binding or enforceable

A

statute of frauds

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25
Q

undertaking to pay the debt or be liable for the defualt of another

A

suretyship

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26
Q

admin or executor who represents decedents under UPC

A

personal representative

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27
Q

person named in a will to admin the estate of the decedent

A

executor, executrix

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28
Q

person appointed to wind up and settle the estate of a person who has died without a will

A

administrator, administratrix

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29
Q

person whose estate is being administered

A

decendent

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30
Q

rule that prohibits the intro into evidence of oral or written statements made prior to or contemporaneously with the execution of a complete written contract, deed or instrument in the absence of clear proof of fraud, accident or mistake causing the omission of the statement in question

A

parol evidence rule

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31
Q

having more that one reasonable interpretation

A

ambiguous

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32
Q

contract consisting of both the original or skeleton document and the detailed statement that is incorporated in it

A

incorporation by reference

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33
Q

language and customs of an industry

A

usage of trade

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34
Q

absence of knowledge of any defects or problems

A

good faith

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35
Q

third person whom the parties to a contract intend to benefit by the making of the contract and to confer upon such person the right to sue for breach of contract

A

third party beneficiary

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36
Q

legal capacity to require another person to perform or refrain from an action

A

right

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37
Q

obligation of law imposed on a person to perform or refrain from performing a certain action

A

duty

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38
Q

transfer of a right, generally used in connection with person property rights, as rights under a contract, commercial paper, an insurance policy, a mortgage. or a lease

A

assignment

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39
Q

promiser

A

obligor

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40
Q

buyer on credit

A

debtor

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41
Q

promisee who can claim the benefit of the obligation

A

obligee

42
Q

party who assings rights to a third party

A

assignor

43
Q

third party to whom contract benefits are transferred

A

assignee

44
Q

right to payment

A

claim

45
Q

right to damages or other judicial relief when a legally protected right of the plaintiff is violated by an unlawful act of the defendant

A

cause of action

46
Q

substitution for an old contract with a new one that either replaces an existing obligation with a new obligation or replaces an original party with a new party

A

novation

47
Q

warranty that was not made but is implied by law

A

implied by warranty

48
Q

transfer of duties by a contracting party to another person who is to perform them

A

delegation of duties

49
Q

transfer to another of the right and power to do an act

A

delegation

50
Q

stipulation or prerequisite in a contract, will, or other instrument

A

condition

51
Q

event that if unsatisfied would mean that no rights would arise under a contract

A

condition precedent

52
Q

event whose occurance or lack thereof terminates a contract

A

condition subsequent

53
Q

goods have arrived, are available for pickup, and the buyer is notified

A

tender

54
Q

equitable rule that if a good faith attempt to perform does not precisely meet the terms of the agreement, the agreement will still be considered complete if the essential purpose of the contract is accomplished

A

substantial performance

55
Q

action of one party to a contract to set the contract aside when the other party is guilty of a breach of the contract

A

rescission

56
Q

substitution of a new contract between the same parties

A

substitution

57
Q

agreement to substitute for an existing debt some alternative form of discharging that debt, coupled with the actual discharge of the debt by the substituted performance

A

accord and satisfaction

58
Q

an instrument by which the signing party relinquishes claims or potential claims against one or more person who might otherwise by subject to liability to the releasor

A

release

59
Q

release or relinquishment of a known right or objection

A

waiver

60
Q

attaching of certain consequences to certain facts because of legal principles that operate automatically as contrasted with consequences that arise because of the voluntary action of the party designed to create those consequences

A

operation of law

61
Q

procedure by which one unable to pay debts may surrender all assets in excess of any exemption claim to the court for admin and distribution to creditors, and the debtors is given a discharge that releases him from the unpaid balance due on most debts

A

bankrupsy

62
Q

statute that restricts the period of time within which an action may be brought

A

statute of limitations

63
Q

failure to act or perform in the manner called for in a contract

A

breach

64
Q

promisors repudiation of the contract prior to the time that performance is required when such repudiation is accepted by the promisee as a breach of the contract

A

anticipatory breach

65
Q

repudiation made in advance of the time for performance of the contract obligations

A

anticipatory repudiation

66
Q

release or relinquishment of a known right or objection

A

waiver

67
Q

assertion by a party to a contract that even though a tendered performance ( a defective product) is accepted, the right to damages for nonconformity to the contract is reserved

A

reservation of rights

68
Q

action pr procedure that is followed in order to enforce a right or to obtain damages for injury to a right

A

remedy

69
Q

action brought to compel the adverse party to perform a contract on the theory that merely suing for damages for its breach will not be an adequate remedy

A

specific performance

70
Q

sum of money that will compensate an injured plaintiff for actual loss

A

compensatory damages

71
Q

nominal sum awarded the plaintiff in order to establish that legal rights have been violated although the plaintiff in fact has not sustained any actual loss or damages

A

nominal damages

72
Q

losses that are caused by breach of a contract

A

direct damages

73
Q

damages the buyer experiences as a result of the sellers breach with respect to a third party, also called special damages

A

consequential damages

74
Q

order of a court of equity to refrain from doing ( negative injunction) or to do (affirmative or mandatory injuction) a specified act

A

injunction

75
Q

provision stipulating the amount of damages to be paid in the event of default or breach of contract

A

liquidated damages

76
Q

specification of exact compensation in case of a breach of contract

A

liquidated damages clause

77
Q

provision in a contract that one of the parties shall not be liable for damages in case of breach, also called a limitation of liability clause

A

exculpatory clause

78
Q

provision in a contract stating that one of the parties is not liable for damages in case of breach, also called exculpatory clause

A

limitation of liability clause

79
Q

land and all rights in land

A

real property

80
Q

property that is movable or intangible, or rights in such things

A

personal property

81
Q

intangible personal property in the nature of claims against another, such as a claim for accounts receivable or wages

A

chose in action

82
Q

title to an owners personal property voluntarily transferred by a party not receiving anything in exchanges

A

gift

83
Q

person making a gift

A

donor

84
Q

recipient of a gift

A

donee

85
Q

any transaction that takes place between living persons and creates rights prior to the death of any of them

A

inter vivos gift

86
Q

delivery of goods by delivery of the means of control, such as a key or a relevant document of title, such as a negotiable bill of lading, also called constructive delivery

A

symbolic delivery

87
Q

gift, made by the donor in the belief that death was immediate and impending, that is revoked or is revocable under certain circumstances

A

gift causa mortis

88
Q

transfer to the state of the title to a decendents property when the owner of the property dies intersate and is not survived by anyone capable of taking the property as heir

A

escheat

89
Q

ownership of property by one person

A

severalty

90
Q

when two or more person hold concurrent rights and interests in the same property

A

cotenancy

91
Q

relationship that exists when two or more persons own undivided interest in property

A

tenancy in common

92
Q

estate held jointly by two or more with the right of survivorship as between them unless modified by statute

A

joint tenancy

93
Q

transfer or property to both husband and wife

A

tenancy by entirety or tenancy by the entireties

94
Q

cotenancy held by husband and wife in property acquired during their marriage under the law of some of the states, principally in the southwestern US

A

community property

95
Q

evidence that, if believed, is sufficient by itself to lead to a particular conclusion

A

prima facie

96
Q

relationship that exists when personal property is delivered into the possession of another under an agreement, express or implied that the identical property will be returned or will be delivered in accordance with the agreement

A

bailment

97
Q

person who turns over the possession of a property

A

bailor

98
Q

person who accepts possession of a property

A

bailee

99
Q

bailment in which the bailor and bailee derive a benefit from the bailment

A

bailment for mutual benefit

100
Q

bailment in which the bailee does not receive any compensation or advantage

A

gratuitous bailment

101
Q

bailment imposed by law as opposed to one created by contract, whereby the bailee must preserve the property and redeliver it to the owner

A

constructive bailment

102
Q

specific, possessory lien of the bailee upon the goods for work done to them, commonly extended by statute to any bailees claim for compensation, eliminating the necessity of retention of possession

A

bailees lien

Business Law 1 (3 decks)

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