Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Business law > Test 2 > Flashcards

Test 2 Flashcards

(82 cards)

Start Studying
1
Q

Of old how were agreements made

A

Medieval merchant guild
Courts of Chancery (equity)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Today contracts are…

A

Common law (judge made precedent)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What 3 things are not covered by the UCC

A

Intangible good
Real estate
Services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Uniform commercial code

A

Laws and judicial gloss governing tangible goods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Offeror/promisor

A

Person making the offer (promisor used in financial contracts)
Giver

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Offeree / promisee

A

Persons the offer was directed to.
Ower

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Void

A

Never was a co tract to begin with

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Voidable

A

Can be voided with correct legal steps
Involved a minor
Fraud
Duress

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Executory

A

Not yet filled by both parties
To be filled at a later date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Executed

A

Fully filled by both parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Quasi contract
Contract implied in law

A

Legal fiction to promote socially desired results

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Contract implied in fact

A

Details of contract created by interactions of the parties involved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Unjust enrichment

A

Financial gain by mistake of another. You can be billed for services if a company put a roof on your house by mistake.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Bilateral

A

Promise for promise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Unilateral

A

Promise for an action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Forebare

A

Withhold an action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Unenforceable

A

Courts won’t enforce because some legal reason (not void or voidable)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Are oral contracts enforceable

A

Usually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Goals of the UCC

A

Uniformity
Conform to how people had done business
Create hard line rules for complex
situations with common law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Common law is …

A

Simple
Understandable
Draconian (no intent is considered)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Lex Mercatoria

A

Law of merchants
Absorbed into common law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

4 fundamental questions of contract

A

-Was a contract made?
-Is contract enforceable?
- Was contract executed(discharged), breached; or performance was legally excused
-If breached , how shall it be enforced or what remedy shall be granted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

4 basic elements of a contract: what 4 things must a contract have to be valid.

A

Mutual assent
Consideration
2 or more parties with legal capacity
Contract must not be illegal or contrary to public policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

For an offer to be valid it must be

A

Clear
Complete
Unambiguous

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Mutual assent
2 parties freely and voluntarily enter into the contract.
26
UCC gap fillers
Price -reasonable for market/service Quality Place or delivery-buyer pick up at seller place of business Time of delivery- normal business hours Time of payment - upon receipt Method of payment -cash or cash equivalent
27
What are the UCC gap fillers
Price -reasonable for market/service Quality Place or delivery-buyer pick up at seller place of business Time of delivery- normal business hours Time of payment - upon receipt Method of payment -cash or cash equivalent
28
What 4 things are not valid offers
Predictions Opinions Statements of future intent Negotiations
29
Ads are considered what
Solicitation to a buyer not an offer
30
What is needed for contract to be valid under UCC
Did the parties intend to contract with each other.
31
How does the UCC attempt to save a contract
Gap fillers Course of performance Course of dealing Usage of trade
32
What is course of performance
Details can not be changed within the course of the same contract
33
What is course of dealing
How the parties of a contract have dealt with each other under previous contracts creates precedent
34
What is usage of trade
Every trade has its on jargon and can establish contract terms within that jargon “Truckload” is an exact quantity
35
Termination and duration of offers
Acceptance - now it is a contract Rejection or counteroffer Lapse of time Revocation of offer Death or insanity Destruction of subject matter Supervening illegality
36
What is an offer with reserve
Usually at auction Minimum amount accepted Auctioneer is the offeree soliciting offers does not have to accept the offer.
37
What is an offer without reserve
Auctioneer is offer or and obligated to take the highest bid Usually seen only at estate sales.
38
What is a lapse of time within the common law
Face to face offer ends when one person leaves Telephone- when hung up
39
What is lapse of time according to the UCC
Set by the terms Reasonable not more than 90 days Different products have different times such as the price changes quickly reasonable under the circumstances
40
What is an option
Agreement to keep the offer open but is not binding unless money has been exchanged
41
What constitutes a firm offer
In writing with a signature to hold offer without payment for a given time. It is binding.
42
When is a unilateral offer binding
When the work begins (supplies are bought) becomes irrevocable
43
Types of consideration
Money Action -service Forbearance Promise -to pay act or forbare
44
What is the mirror image rule
For an acceptance to be valid it must match the offer exactly
45
Explain “master of his offer”
The offerer may condition an offer’s acceptance on anything but silence.
46
What is the objective theory of contracts
Would a reasonable person in this position believe the offeree intended to accept the offer
47
What is the purpose of consideration
To encourage economic exchange of legal value No moral stake
48
What is the courts stance on consideration?
The do not evaluate adequacy of consideration unless there is fraud, duress or undue influence
49
What things look like consideration but are not
Past consideration Moral obligation Pre-existing duty Illusionary promises
50
What is past consideration
You can not be rewarded for something that has already occurred.
51
What is pre existing duty?
Person has a preexisting duty to not do that already. Ie drugs
52
What is illusionary promise
Promise based on opinion “I’ll pay $2000 if I like it”
53
Liquidated debt vs unliquidated debt
Liquidated is not in question vs unliquidated is in dispute
54
When is consideration unnecessary
Promissory estopple Charitable pledges Written promise to pay debt after bankruptcy Written promise to pay debt after statute of limitations
55
What is promissory estoppel
Legal principle that a promise is enforceable by law even without formal consideration
56
What are the 5 steps to argue promissory estoppel
-Def makes a promise to plaintiff -Def knew pl would rely on the promise -Pl does rely on the promise - Pl relying on said promise was reasonable -Pl suffered damages as a result of promise
57
Who does not have legal capacity
Minors Mentally incompetent
58
Why can minors not sign contracts
Lack of maturity, education and experience
59
Contracts between adults and minors are …
Voidable not void
60
What is disaffirmance
And words or actions manifesting an intent not to be bound by the contract
61
When can a minor or mentally incompetent person disaffirm a contract
Anytime while still a minor or incompetent or within a reasonable time after
62
Who can disaffirm a contract
Only the minor/incompetent or their legal guardian
63
If a contract is disaffirmed what happens to the items
Minor must return in current condition if lost stolen used there is no remedy, if sold return money gained if they still have it. Adult must return money and items to minor
64
What contracts with minors can not be disaffirmed.
Necessities
65
What is ratification
Opposite of disaffirm a indication that the minor/incompetent wants to be in contract
66
How can a contract be ratified
Express words Actions indicating intent Failing to disaffirm within a reasonable time
67
What can cause mental incompetence
Mental illness alcohol drugs Stress Physical illness It’s is the claimer’s job to prove
68
What contracts are illegal
To commit a crime Violate a statute Do a legal thing by an illegal manor By a person lacking a license
69
What contracts are contrary to public policy
No void but unenforceable if challenged in court Ie non compete Exculpatory clauses Surrogacy contracts Decided by the court
70
What is exculpatory clause
Contract clause that shifts liability to another person
71
3 criteria of a non-compete
Has a purpose other then stifling competition Reasonable geographic area Reasonable time
72
Blue pencil remedy
A remedy that makes a contract agreeable to the court Rarely used
73
What limits exist for an exculpatory clause
You can not insulate yourself from negligence
74
What will negate freedom of contract
Fraud Misrepresentation Duress Undue influence Bilateral mistake of fact Unconscionability
75
6 elements of fraud
Misrepresentation of fact Misrepresented fact was material Misrepresentation was intentional Pl relied on the misrepresentation Pl reliance was reasonable Pl suffered damage
76
What three things are not considered to be fraud
Opinions Puffing Silence
77
Remedies for fraud
Rescission or compensatory and punitive damages.
78
What is misrepresentation
Negligent tort Same a fraud but the misrepresentation was negligent not intentional No punitive damages can be awarded
79
Elements of duress
Def make a threat of harm Reasonable for pl to believe threat Threat results in contract not otherwise signed Pl suffered damages May include non-criminal if motivated by malice
80
Undue influence
Someone enters a contract with another and uses their power or position over them unfairly
81
How much evidence is required to prove a mistake in terms
Clear and convincing
82
Prima facia
On its face

Business law (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions