Business Law Final,

Intentional misrepresentation is commonly referred to as ___

fraud

___ is a state statute that requires certain types of contracts to be in writing

statute of frauds

Who should provide a notice of assignment to the obligor

assignee

An oblige who transfers the right to recieve performance is called a(n)___

assignor

The ___ rule provides that the first assignee to give notice to the obligor

English

___ says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable

Equal dignity rule

___ is a fraud that occurs when the part known what he or she is signing but has been fraudulently induced to enter the contract

Fraud in the inducement

___ damages are awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach

Nominal

Which of the following is an illustration of the possession of tangible token rule?

The right of collecting $10,000 is recording in the assignee's savings account passbook

Which of the following statements is true of signature on a written contract?

The signature of the personal who is enforcing the contract is not necessary

____ Occurs when one part threatens to do some wrongful act unless the other party enters into a contract

duress

To recover damages, the innocent party must prove that the fraud caused him or her _ injury

economic

The ___ says that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

equal dignity rule

Which of the following is used in case of a breach of contract that cannot be adequately compensated through a legal remedy?

equitable remedies

____ easements must be in writing to be enforceable, while implied easements need not be written

express

___ is a clause in a contract in which the parties specify certain events that will excuse nonperformance

force majeure

Which of the following occurs when one party intentionally hides a material fact from another party?

fraud in concealment

Fraud in the inception is also known as _

fraud in the factum

A court may permit the rescission of a contract based on the equitable doctrine of

undue influence

___ occurs when one person (the dominant party) takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person (the servient party) to enter into a contract

undue influence

A(n) ___ occurs when only one part is mistaken about a material fact

unilateral mistake

Heather chooses to buy a scarf at Macy's and reads the price on the tag as $50. She uses her credit card to par for the scarf, but post-purchase, she notices that the price tag actually says $500. This is an issue of ____

unilateral mistake

Contracts involving fraud in inducement are ___

voidable

A ___ is an order of the court tat enables a government officer to seize property of the breaching party held by third persons be paid to the nonbreaching party to satisfy a judgement

writ of attachment

A ___ is an order of the court that orders that wages, bank accounts, or other property of the breaching party held by third persons be paid to the nonbreaching party to satisfy a judgement

writ of garneshment

___ is an action to undo a contract

Rescission

Which of the following is true of undue influence in entering contracts?

A fiduciary or confidential relationship must have existed between the parties for undue influence to be proven

The ___, also known as New York Rule, provides that the first assignment in time prevails, regardless of notice

American Rule

Which of the following is true of incidental beneficiaries?

An incidental beneficiary cannot sue under other people's contracts

___ is a clause that prohibits the assignment of rights under the contract

Anti-assignment clause

___ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due

Anticipatory repudation

___ place the nonbreaching party in the same position as if the contract had been fully performed

Compensatory damages

___ refers to a condition whose occurrence or nonoccurrence of a specific even automatically excuses the performance of an existing contractual duty to perform

Condition subsequent

A situation where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract, the delegation is called a (n) ___

Declaration of duties

An obligor who transfers his or her duty is called a(n) ___

Delegator

Which of the following statements is true of mitigation of damages?

If an employer breaches a contract, the employee is only required to accept comparable employment

Which of the following is true of duress?

It is a threat issued to make another person sign a contract

A ____ is the transfer of the right to use real property for a persons lifetime, upon that persons death the interest will be transferred to another party

Life estate

Which of the following interests in real property transfers to another person after the present holder's death?

Life estate

___ clause, also known as integration clauseis a clause in a contract that stipulates that it is a complete integration and the exclusive expression of the partie's agreement

Merger

___, also known as the deed of trust, is an interest in real property given to a lender as security for the repayment of a loan

Mortgage

___ is any oral or written words outside the four corners of a written contract

Parol evidence

___ is an equitable doctrine that allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice

Past performance

____, also known as equitable estoppel is an equitable doctrine that permits enforcement of oral contracts that should have been in writing. It is applied to avoid injustice

Promissory estoppel

____ is an objective test that applies to commercial contracts and contracts involving mechanical fitness

Reasonable person test

____ refers to an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions

Reformation

____ is an action to undue a contract

Rescission

___ is a term that denotes the return of goods or property recieved from the other party to undo a contract

Restitution

Which of the following statements is true of interpreting contract words and terms?

Specific terms are presumed to qualify general terms

The ___ requires certain contracts to be in writing

Statute of Frauds

Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply of 500 truckloads of sand within next week. Delta Resources delivers the sand in two days after the contract was made. Poole Contractors pays the $50,000 promised in the contract. This is an example of ____

Strict performance

___ is a situation in which a party to a contract renders performance exactly as required by the contract

Strict performance

Which of the following statements is true of a breach of contract?

Strict performance by a party discharges that party's duties under a contract

Which of the following statements is true of discharge of contracts?

Tender of performance discharges a party's contractual obligations

Which of the following is true in the event that an assignee does not provide a notice of assignment to the obligor?

The assignee cannot sure the obligor to recover payment

When does a minor breach occur?

When a party renders substantial performance of his or her contractual duties

Under which of the following conditions does a promissory estoppel provide for the enforceability of an oral contract?

When the promise induces action or forbearance of action by another

Which of the following is considered "real property"

a fixture permanently affixed to a building

Which of the following phrases describes the term covenant?

an unconditional promise to perform

A(n) ___ is used if the obligor does not want to deal with or render performance to an unknown third party.

anti-assignment clause

A legal right that arises out of a breach of contract is ____

assignable

A(n) ___ occurs when there is a transfer of both rights and duties under a contract

assignment and delegation

An obligee who transfers the right to receive performance is called the ____

assignor

In which of the following conditions is a party's absolute duty to perform conditioned on the other party's absolute duty to perform

concurrent condition

____ refers to a condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract

condition precedant

Which of the following is an exception to the statute of Frauds?

contracts under promissory estoppel

A (n) ___ is an unconditional promise to perform

covenant

A(n) ____ is an original creditor who becomes a beneficiary under the debor's new contract with another party

creditor beneficiary

In a guarantee situation, the original contract is between the ___

debtor and creditor

In a guarantee situation, the original contract, or primary contact, is between the ___ and the ___

debtor, creditor

Mortgage is also known as ____

deed of trust

A contract entered into with the intent to confer a benefit or gift on an intended third party is called a(n) ___

donee beneficiary contract

A ___ occurs when one person agrees to answer for the debts or duties of another person

guarantee contract

A(n)___ occurs when one person agrees to answer for the debts or duties of another person

guarantee contract

____ is a person who agrees to pay a debt if the primary debtor does not

guarantor

Scienter is also known as _

guilty mind

A party who is unintentionally benefited by other people's contracts if called an ___

incidental beneficiary

Which of the following constitutes material breach?

inferior performance

A court order that prohibits a person from doing a certain act is termed as a(n) ___

injunction

A(n) occurs when a person makes a statement of fact that he or she honestly and reasonably believes to be true even though it is not

innocent misrepresentation

A third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor is called the ___

intended third party beneficiary

Which of the following torts arises when a third party induces a contracting party to breach the contract with another party?

intentional interference with contractual relations

When a party commits an anticipatory breach the nonbreaching party ___

is immediately discharged from his or her own duties

What is scienter?

knowledge that a representation is false

The ____ states that if the main purpose of a transaction and an oral collateral contract is to provide pecuniary benefit to the guarantor, the collateral contract does not have to be in writing to be enforced

leading object exception

A ___ is the transfer of the right to use real property for a specified period of time

lease

Ida moves to New York from Poland and wants to live in an apartyment. However, she does not have sufficient money to buy one. Her colleague Henry allows Ida to live in his old apartment for a year, if she pays him $25000, this contract is a ___

lease

Parties to a contract agree in advance to pay ___ damages if the contract is breached

liquidated

A(n) breach of a contract occurs when a party renders inferior performance of his or her contractual obligations

material

____ fact is a fact that is important to the subject matter of a contract

material

The ___ will be allowed as grounds for rescission of the contract if one part to the contract is a professional who should know what the law is and intentionally misrepresents the law to a less sophisticated contracting party

misrepresentation of law

Which of the following is not actionable as fraud?

misrepresentation of law

A ___ occurs where one or both of the parties to a contract have an erroneous belief about the subject matter, value, or some other aspect of the contract

mistake

Which of the following terms refers to a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract

mitigation of damages

Which of the following is an interest in real property given to a lender as security for the repayment of a loan?

mortgage

___ is a mistake made by both parties concerning an object that is important to the subject matter of a contract

mutual mistake of material fact

In which of the following cases of assent is the rescission of a contract unenforceable?

mutual mistake of value

A contract in which both parties are mistaken about the value of the object of the contract is considered ___

non-rescinadable

A(n) agreement substitutes a third party for one of the original contracting parties

novation

A party who owes a duty of performance under a contract is called the ___

obligator

Approval clauses require that the ___ approve any assignment of a contract

obligor

The ___ states that an executory contract which cannot be performed by its own terms within one year of its formation must be in writing

one year rule

If someone threatens to physically harm another person unless that person signs a contract, this is ___

physical duress

The state of two specified parties being in a contract is called ___

privity of contract

___ includes the land itself, buildings, trees, soil, minerals, timber, plants, crops, fixtures, and things permanently affixed to the land or buildings

real property

Kimberly INC, a jewelry store, and JKCent, a retailer, draft a contract that permits JKCent to retail Kimberly's jewelry in its stores. However, the parties discover a minor clerical error six months into the contract and the court rewrites their contract. This is an instance of ___

reformation

___ is an action to undue a contract

rescission

Section 2-201(1) of the UNiform Commercial Code is the basic Statute of Frauds provision for ___

sales contracts

Knowledge that a representation is false or that it was made without sufficient knowledge of truth is called _

scienter

An award of ___ orders the breaching party to perform the acts promised in a contract

specific performance

The injured part loses the right to sue if the lawsuit is brought after the ___ expires

statute of limitations

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

tender of performance

The measure of damages, recovered from a misreprentation, is ___

the difference between the value of the property as represented and the actual value of the property

To prove fraud, which of the following elements must be shown?

the wrongdoer intended to decieve the innocent party

Which of the following constitutes duress?

threat to commit extortion unless someone enters into a contract