Quiz 8 Review

Question 1

acceptance

Answer 1

a manifestation of assent to the terms made by the offeror in a manner invited or required by the offeror

Question 2

assignee

Answer 2

one to whom a legal right is transferred

Question 3

bilateral contract

Answer 3

a contract between parties based on exchange of promises

Question 4

capacity to contract

Answer 4

legal ability to enter into a binding agreement

Question 5

compensatory damages

Answer 5

amount awarded a plaintiff to compensate for injury for losses suffered

Question 6

consideration

Answer 6

a benefit or detriment bargained for by parties who form a contract

Question 7

corporation

Answer 7

an entity with legal powers chartered under law and designed to exist indefinitely where ownership is vested in stockholders

Question 8

express contract

Answer 8

a contract where the terms have been expressed orally or in writing by the parties

Question 9

implied contract

Answer 9

an agreement or acquiescence manifested by a person’s actions or inaction

Question 10

limited liability company

Answer 10

a business structure combining aspects of both corporations and partnerships, in which the members are insulated from actions of others in the company

Question 11

mutual assent

Answer 11

an understanding between parties manifested by an offer and an acceptance

Question 12

offer

Answer 12

a manifestation of a willingness to enter into an agreement which justifies another person in understanding that his assent can conclude the agreement

Question 13

parol evidence rule

Answer 13

A rule of law providing that when a contract is complete, oral agreements made prior to or at the time of execution of the contract cannot be admitted in evidence to vary or contradict the terms of the contract absent fraud, mistake or illegality

Question 14

partnership

Answer 14

an association of two or more people who carry on business for profit as co-owners and share in the profits and losses

Question 15

pre-existing duty

Answer 15

a duty, the performance of which does not constitute a valid consideration for a contract

Question 16

promissory estoppel

Answer 16

a doctrine of contract law under which a promise, even though made without consideration, may be legally enforceable if the promise induces action on the part of the promissee

Question 17

sole proprietorship

Answer 17

a business owned a operated by one individual

Question 18

statute of frauds

Answer 18

a statutory law patterned after an English statute that requires certain contracts to be in writing

Question 19

suretyship

Answer 19

a written contract whereby one party agrees to become liable for the debt or default of another party

Question 20

Uniform Commercial Code

Answer 20

Model code adopted by most states to help facilitate interstate commerce

Question 21

unilateral contract

Answer 21

a contract formed by a promise being made in exchange for performance of an act

Question 22

void contract

Answer 22

an agreement that cannot be enforced by law

Question 23

voidable contract

Answer 23

an agreement that a party can choose to set aside