Quiz 2

Recignizance

Refers to the obligation that people enter into before a court to do an act required by law

Forbearance

When one refrains or promises to refrain from doing something

Fraud in the Inducement

occurs when a party intends to make a contract based on false statement of terms.

Informal contracts are also known as _____ .

simple contracts

The term disaffirmation refers to:

the election to avoid a contract or set it aside.

Quasi-contract

-prevents the unjust enrichment of a party. -imposed by law in order to prevent one party from benefiting unfairly at another's expense.

As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule and can be enforced without the support of consideration?

An obligation of record such as a judgement.

A firm offer can be best defined as:

An offer that cannot be revoked for a reasonable time if no time is stated.

Offers and Invitations

Circulars are invitations to the recipient to make an offer.

Consideration

Indicates what the promisor demands and receives as the price for a promise.

Binding Contract

Is created with the offeree clearly shows an intention to accept the offer.

Doctrine of Promissory Estoppel?

It requires the promisor to reasonably expect the promise to induce action by the promise.

An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true in this case?

The contract is enforceable against the adult and not the minor.

Unenforceable Contracts

They can be made enforceable by making a few changes to them

An executory contract is defined as:

a contract in which the terms have not been fully carried out by all parties.

Economic duress occurs when:

a person threatens to harm another person financially in order to get an agreement.

The failure of a party to perform the obligations assumed under a contract is known as a(n):

breach of contract