ACCT 215 Exam #3

abolishes the concept of the mirror image rule

UCC 2-207 is different from the common law because UCC 2-207

any method that is reasonable

UCC Section 2-206 states acceptance may be made by what method

additional terms may become party of a contract

US 2-207 states

solicitation of bids

a common example of a statement of future intention

firm offer

an offer can become a ... if (1) the offer was made by the merchant, (2) there is a signed writing and (3) the writing clearly states the offer is to remain open

undue influence

assume danny enters into a contract with his long-term mentor patricia. patricia knows danny trusts her and she takes advantage of his trust to secure an unfair economic position under their contract. based upon these facts alone, danny might benefit from the defense of

threat of physical harm

economic duress as a defense against contract enforcement does not require

revocation

eliminates the ability of an offeree to accept

are sometimes enforceable

exculpatory clauses

course of dealing

how the parties have acted in previous dealings with one another

course of performance

how the parties have interpreted terms in a contract as evinced by performance under the contract

implied contract

if Jim has Greg mow his lawn every week for $15, at first jim called Greg each week, but now Greg just comes to mow without Jim calling him. What type of contract do they have

unilateral contract

if an offer to contract is accepted by complete performance only, the contract is considered a

delegatee

is the party to whom a delegation of duty has been made

jill's letter of acceptance is effective once placed in the mailbox

jack offers to sell jill his automobile for $10,000. Jill says she must think about it but she is not rejecting his offer. Jill goes home that evening and comes to the realization that $10,000 is a great deal. She sends Jack a letter of acceptance by mail at 4pm by placing it in the drop box at the post office. jill did not know that jack had sent her a revocation letter at 3:30 from a different post office. the letter of revocation is schedueld for delivery the next day at 10 am. what result

offeror

makes the offer

good faith

means honesty in fact and the observance of reasonable commercial standards of fair dealing

compensatory damages

meant to compensate or reimburse the plaintiff for what they have lost

inquiry

not a counteroffer

assignment

occurs when a party transfers its right under a contract to a third party

counteroffer

rejects the original offer and makes a new offer

exculpatory clause

relieves a party from liability in the event an injury results from performance of the contract

john enters into a implied-in-fact contract

silence would most likely constitute acceptance of an offer to contract in which of the following scenarios

subsequent written modifications

the parol evidence rule would most likely allow which of the following types of evidence

voidable

under contract law, if a minor enters into a contract with an adult, the contract is considered

an incidental beneficiary

which of the following beneficiaries lacks standing to sue under a contract

any mistake of fact is a valid defense against contract enforcement

which of the following statements is not true

jan offers to sell her computer to Jim for $500

which of the following would most likely be considered a legally biding offer

the mailbox rule states a revocation is effective once dispatched

Assume Tandra offers Don $6000 for his automobile. Don says he will have to think about the offer to contract. Later that day, Don sends an acceptance letter to Tandra by mail. however, tandra had already purchased a new car from another party. Tandra had sent a letter of revocation to Don earlier in the day by mail. Which of the following statements is true

no, he is missing the sufficient consideration element

Johnny promises to give Tommy $20 if he doesn't drive a car before he is 15 years old. Johnny and Tommy live in Missouri where you must be 16 to drive a car. is this a contract? if not, what element is missing

caveat emptor

"buyer beware".

bilaterla mistake assuming the other party believed it was a 48 inch tv

Carla purchased a 48 inch Plasma Flat screen television off of craiglist. when the television was delivered to her the following week, she realized that it was only 36 inches instead of 48 inches like it had mentioned in the advertisement. which of the following would be a defense against contract enforcement that carla can use in the situation

express and precedent

Horace promises to hire Samuel after Samuel becomes a licensed real estate agent. this condition can be characterized as

perform all duties required of her to the exact letter of the contract

If Jessica wishes to extinguish her liability under a contract by performance, she should

notify the seller of the potential defect

In the event of a shipment of non-conforming goods by a seller before the due date for performance has expired, the UCC requires the buyer to

thomas is an intended donee beneficiary

Assume Bethany contracts with Tyler to fix a car owned by Bethany's son Thomas. Under the contract, Tyler is to fix the car and Bethany is to pay Tyler for his work and any parts he has to buy to fix the car. Thomas has no duties under the contract. Bethany does not owe Thomas any money for any existing debts. Bethany tells Tyler to buy any parts he needs at PartsZone. Based upon these facts alone, which of the following statements is true?

destruction of subject matter

Assume Randal Construction contracts with Krane Company for the rental of a large crane at the rate of 50,000 dollars per day. Assume the day before Krane Company was to make delivery of the crane, the crane was rendered inoperable by an engine fire. Based on these facts alone, Krane should argue which of the following legal concepts excuses its performance?

both general and special compensatory damages

Assume Retail Company contracts with Washer Manco for the purchase of 100 washing machines. Washer Manco is to provide delivery of the washing machines by November 1 of the current year. Retail Company gives notice to Washer Manco that it has already entered into a contract to resell the washing machines at a profit of $30,000. Washer Manco breaches the contract by never delivering the washing machines. Retail Company loses its $30,000 in profits and incurs expenses related to the breach of $10,000. Based upon these facts alone, Retail Company should be entitled to

mitigaion

Assume Sahles Company enters into a contract with DevCo. DevCo breaches the contract and Sahles Company incurs damages because of the breach. Which of the following vocabulary terms could be used by a court to reduce the damages awarded to Sahles Company because it did not attempt to reduce its damages because of the breach?

terrace and wilma do not appear to have serious objective intent to form an agreement to contract

Assume Terrance would like to buy Wilma's car. Terrance asks Wilma if she would sell her car. she says she might for the right place. Terrance says he will pay her $20,000. Wilma says "that seems about right but I need it to drive to work." Which of the following statements is true

a condition precedent

Jennifer contracts with Andrew for software programming services. Under the contract, Jennifer will pay Andrew $50 per hour of programming services rendered. According to the contract, Jennifer is not obligated to perform under the contract with Andrew until she receives a certain contract from Data Corp. Therefore, unless Jennifer can obtain the contract from Data Corp, she is not obligated to pay Andrew for providing services. The fact Jennifer must receive the Data Corp contract before being obligated to perform under her contract with Andrew is referred to as

a promise that acts as an illusory promise

Jim tells Yoshi that Jim will fix Yoshi's computer for $100. Yoshi says I accept but I dont think I will pay you $100. In fact, I might now pay you at all. Yoshi has provided Jim

informal, unilateral, and executory

Rick has a contract with Cydine. Under the contract Rick promises to pay Cydine for decorating services. Cyndie states she will perform but only if she has time. she does not promise her performance. The two parties reduce their contract to writing even though state law has no writing requirement. cyndie performs on January 1 but Rick has not paid her yet. which labels are appropriate for this contractual relationship

statute of frauds

a concept requiring certain contracts to be in writing before the contract would be enforceable in a court of law

implied condition

a condition that is neither written nor oral but nonetheless exists as a party of the contract and can be inferred from the facts surrounding the contract

condition precedent

a condition that must be satisfied before performance is required by another party under a contract

condition subsequent

a condition that requires performance until a condition is no longer satisfied

void, voidable, or fully enforceable depending upon the circumstances

a contract entered into by a person who is mentally incompetent may be

adhesion contract

a contract in which one party has a superior amount of bargaining power that eliminates the other party from bargaining for better terms in a contract

requirements contract

a contract in which the seller agrees to sell the buyer all the product a buyer would need

breach

a contract means to fail to perform one's duty under a contract

option contract

a contract under which the offeror promises to keep her offer open to the offeree until a specified date

implied-in-fact contract

a contract which it is inferred from the actions of the parties and is not evinced by an oral or written agreement

usage of trade

a court will look to see how those engaged in the type of business involved in the contract dispute define similar terms

alimony

a court-ordered requirement of payment to be made by a divorced spouse to their former spouse

punitive

a damage that is not meant to compensate a party for a loss suffered from the breach of contract but is instead designed to punish the breaching party from improper behavior

preexisting duty

a duty that one already legallyl owes. cannot consittute legally binding consideration

conditional gift

a gift that can be accepted or demanded only after a certain condition has been met

objective impossibility

a legal doctrine that discharges a party from their contractual duties if it is impossible to perform such duties and the difficulty was not foreseeable at the time of contracting

frustration of purpose

a legal doctrine that discharges the duty of parties to perform where the original purpose of their contract can no longer be achieved

commercial impracticability

a legal doctrine where a court discharges a party from their contractual duty because it is commercially impractical but not objectively impossible

a definite period of time

a merchant's firm offer under the UCC does not require

undue influence

a party to a contract is unfairly influenced (persuaded) and agrees to contractual terms that the party would not normally consent to absent the undue amount of influence

obligor

a party who owes a performance under a contract

incidental beneficiary

a party whom the original parties did not intend to benefit with their contract

intended beneficiary

a party whom the original parties to a contract intended to benefit

illusory promise

a promise that appears to be consideration but is not, as the promise itself does not legally obligate herself to a specific detriment

covenant

a promise to do or refrain from an action

legal subject matter

a requirement that a contract not accomplish an illegal goal or act

scrivener's error

a typographical error

subsequent modification

a written agreement is a modification that occurs after the written agreement is signed

express condition

a written or verbal condition to a contract

the mailbox rule

acceptance of an offer is deemed effective upon dispatch

a unilaterla mistake in judgment is not a defense against contract enforcement

according to the aydin corp vs. US case

consideration given by both parties

according to the textbook, before applying the concept of promissory estoppel, a court looks for all of the following facts except

options contract

according to the textbook, which of the following creates a legally binding offer

defendant caused plaintiff's economic hardship

according to the textbook, which of the following is a requirement for proving economic duress as a defense against contract enforcement

assignor

according to the textbook, which of the following is defined as a party to a contract who transfers a right

swearing of a solemn oath

according to the textbook, which of the following is not listed as a commonly recognized exception to the requirements of the statute of frauds

length, geographical area, and scope of prohibited services

adam was recently fired from his job. His employer reminded him as he left after being fired about an agreement that Adam had signed. the agreement stated that adam could never solicit business from his employer's customers once he left the company. wether or not this agreement ill be enforceable depends upon its

prenuptial agreement

agreements that are made in contemplation of marriage. used to determine what will happen top each party's assets in the event of a divorce or death after the two parties are married

someone who has been adjudicated mentally incompetent

all of the following may have the capacity to enter into a contract, except

freedom from contract

allowing a party to disaffirm a contract because they were intoxicated at the time of contract formation is an example of

doctrine of unforseen circumstances

allows a contract to be modified from its original terms without requiring additional consideration, as long as the unforeseen circumstance was not foreseeable.

accord and satisfaction

also known as an accord, where the parties agree to satisfy a preexisting duty by imposing a new contractual duty.

necessary

an item necessary to sustain a minor's existence

serious objective intent

an offeror must have ... to be bound by an offer

promissory estoppel

another example of an agreement that is enforceable even though it lacks consideration. requires 4 elements (1) a person to make a promise, (2) the person receiving the promise justifiably relies on the promise, (3) the person relying on the promise suffers a detriment, and (4) justice is served by the enforcement of the promise that was not supported by consideration

a writing and the signature of the party against who the contact is being enforced

as a general rule, the statute of frauds requires

unilateral mistake

as a general rule, which of the following is generally the least effective defense a defendant can raise against contract enforcement

a minor must simply return what he still has when disaffirming a contract

as reported in the textbook and according to the Halbman case, under Wisconsin law

the promise to back a cake is not a legally enforceable contract because consideration is lacking

assume Jennifer contracts with molly to plan Molly's wedding. Jennifer agrees to provide certain services in exchange for $5,000. Two days before the wedding, the person responsible for baking the wedding cake becomes ill. jennifer tells molly she will bake the cake. Molly says I will pay you $500 for the service of baking the cake. Jennifer says "that is not necessary. I will do it for free." which of the following statements is true regarding the promise to bake the cake

special damages

assume Mondo's italian restaurant contracts with Prime Beef producers for the purchase of 20 pounds of Grade A beef. Prime Beef Producers breaches the contract. the textbook states notice is required before a court will award

reformation

assume a court changes the terms of a contract to correct an immaterial illegality that arose. this equitable remedy would be referred to as

accord and satisfaction

assume alex and jim have a dispute as to how much alex owes Jim for a service Jim completed as party of a contract with alex. assuming the amount is truly in dispute and the exact amount cannot be liquidated, alex might use which of the following legal concepts to settle her disputer with jim

the offer to purchase Ted's business will terminate after a reasonable amount of time

assume alyssa offers to purchase Ted's accounting practice for two million dollars. ted says he needs a few days to think about it. alyssa says ted better decide soon but she does not say when her offer will terminate. neither ted nor alyssa document any of their conversation in writing. no consideration is exchanged. based upon these facts alone, which of the following statements is true

the feelings of the parties towards one another because of the non-compete clause

assume amy and barbara start a flower shop. as part of a legally binding contract, neither amy nor barbara can leave the flower shop partnership to start a competing business. if a dispute arises regarding this non-compete clause of their contract, a court would consider all of the following elements to determine its legal consequences, except

duress

assume frank decides to attend school in North Bend, Indiana. Frank visited North Bend during his spring break. he signs a lease with a landlord who had their property manager show Frank an empty apartment at the apartment building. the property manager had brandished a firearm to Frank. He told Frank he had better sign the lease or else he might have to visit the hospital before he left town. Frank immediately signed the lease. Frank would now like to get out of his lease. Based upon these facts alone, Frank's best defense against contract enforcement would be based upon

partial performance

assume heather gives nelson a check for $20,000 as a down payment on one acre of undeveloped real estate. the two parties agreed orally to a total purchase price of $50,000. the two parties, however, never reduced their agreement to writing. based upon these facts alone, the $20,000 down payment might invoke which of the following exceptions to the statute of frauds

henry and scott do not have a contract

assume henry makes a promise to give scott his antique car upon death. scott accepts but promises nothing in return. under the common law of contracts.

voidable

assume horace is mentally incompetent at the time of contract formation. horace has never been adjudicated mentally incompetent by a court of law. under the common law of contracts, the contract entered into by horace while he is mentally incompetent is best referred to as

a covenant-not-to- compete

assume jennifer is considering hiring Randy to work for her as a salesman. randy will have access to all of jennifer's best customers. jennifer is worried about randy starting a competing business. Jennifer might consider the use of which of the following contractual concepts to prevent Randy form starting a competing business

revocation

assume kerry calls katie and makes an offer to sell katie her bedroom furniture set. katie says she needs one week to think about it. two days later, kerry calls katie and says, "i have decided to keep bedroom furniture set." assuming neither katie nor kerry are merchants, under the common law of contracts, kerry's statement that she wants to keep the furniture would be viewed as a

becca creates an immaterial breach of contract

assume mark and becca enter into a contract. which of the following would not excuse performance on the part of mark

express contract

assume natalie and chad enter into a legally binding contract for a service to be completed within 3 months. natalie suggest they reduce their contract to writing. assuming state law would not require this contract to be in writing, and neither party has performed yet, this contract meets the textbook definition of a

substantial performance

assume natalie provides service to Angela under a services contract. natalie does not complete her duties but performs in good faith. She leaves only an immaterial task uncompleted. natalie has at best provided

$560,000 plus interest

assume read manufacturing hires quickbuild incorporated to build read a new office complex. the total contract price is to be $560,000. the total cost to quickbuild for building the office complex is $420,000 leaving profit of $140,000. assume read manufactuirng breaches its contract with quickbuild once the building is complete. read has made no payments to quickbuild. what amount of damages is quickbuild entitled to receive

fully enforceable

assume sally suffers from mental illness. she visits a doctor who diagnoses her with early onset dementia. three months later she enters into a contract for the purchase of bedroom furniture. it is a proven fact she understood the consequences of her actions when contracting for the furniture. based upon these facts alone, her contract for the purchase of bedroom furniture is

proposal

assume veronica approaches rick and makes rick an offer for the purchase of his used bicycle for $350.00. Neither veronica or Rick are merchants. Rick accepts veronica's offer but says veronica must allow him to remove the mirror he installed on the bike. under UCC section 2-207 by accepting and adding an additional term to the agreement, rick may have created a

parol evidence rule

assume xin enters into a contract with tomr for the purchase of a ski boat. the two parties creates a document that they intend to be the final written agreement for the sale of the boat. Both parties sign the contract. which of the following legal rules would prevent tom from attempting to enter prior oral negotiations into evidence to contradict the terms of the signed written agreement

subjective condition

by its definition, which of the following conditions is satisfied only upon the satisfaction of the opinion of one of the parties to the contract

adhesion contract

cher's sister, dion, is stuck in a hole covered with a large rock. joey is the only one in the world with the adequate equipment to move the rock successfully. joey agrees to move the rock and save dion if cher agrees to pay for any and all of the food he eats for the rest of his life. cher agrees. what kind of contract is this

reliance damages

compensate the plaintiff for expenses they have incurred by relying on the contract that was breached by the defendant

unenforceable contracts

contail all the elements of a valid contract but are unenforceable by a court

objective condition

contains a reasonableness standard in regard to determining or judging when the condition has been met

unilateral contract

contains an offer that can be accepted by providing complete performance only

void, voidable, or full enforceable

contracts entered into by those who suffer from a mental illness could be

voidable

contracts for which one party has the option of nullifying the contract or enforcing it

unconscionable contracts

contracts that "shock" the conscience of the court in such a manner that the court refuses to enforce either the entire contract or the provision of the contract the court finds to be unconscionable

express contracts

contracts that are either verbal or written in form

informal contracts

contracts that are not subject to formal requirements under the law such as being evinced in writing or being notarized by a public official

formal contract

contracts that, to be enforceable, are required to conform to additional requirements imposed by the law such as the need for writing signed by the defendant

executed contracts

contracts under which both parties have performed and no performance is still due

force majeure clause

contractual clause that excuses a party's performance in the event a certain agreed-upon event occurs that is out of the control of the parties

Freedom from contract

counterbalancing the freedom to contract

incidental damages

damages arising because of the breach of the seller and include costs such as shipping goods back to the seller or having the goods inspected by a third party

liquidated damages

damages provided in a contract that are meant to compensate the non-breaching party in the event of a breach of contract

restitution damages

damages that are equal to the amount of value the defendant has received

consequential damages

damages that compensate the injured party for costs or lost profits caused because of the breach or damages and that the seller knew would result or had reason to know would result

special or consequential damages

damages that require notice to be received by the defendant

bilateral mistake of law

dan agrees to build a house for newlywed couple. the couple buys a plot of land, but then finds out that they cannot build the house in accordance with local zoning law. both dan and the couple were mistaken as to this fact. this is an example of a

subjective condition

determined to be satisfied by the subjective opinion of a party to a contract

parol evidence rule

disallows evidence of negotiations that occurred prior to the integration of the party's final contractual agreement into a signed written contract if the purpose of the evidence of the prior negotiations is to contradict the terms of the signed written contract

shrink-wrap agreement

exists when the terms and conditions of the contract are contained in a product's sealed packaging but the terms cannot be accessed until the plastic wrap is removed from the box. Once the plastic wrap is removed, the purchaser cannot return the product

general damages

foreseeable damages that result from a party's breach of contracts are called

intentional misrepresentation

fran and gretchen enter into a contract for the sale of a washing machine. fran is the seller and gretchen is the buyer. fran tells gretchen the washing machine is in good working order. however, he knows this is not true. he tells gretchen the untruth hoping she will believe it and buy the washing machine. Gretchen purchases the washing machine and then has problems with its operation. based upon these facts alone, the fact that fran lied to gretchen might allow her to be able to utilize the contract law defense of

agreement

generally evinced by an offer and an acceptance

equitable remedies

generally nonmonetary in nature

advertisement

generally not a legally binding offer unless it contains words of limitation such as limiting the quantity of the item being sold or the number of people who can accept

expression of opinion

generally not an offer

conforming goods

goods that meet the specifications of the contract

uniform commercial code

governs sales contracts for goods as well as leases. designed to provide uniformity to businesses that were transacting across state lines

all of the choices listed would prevent an additional term from becoming part of a contract under the UCC

if both parties are merchants, then additional terms automatically become part of the contract under the UCC unless what

conditions concurrent

if both parties are subject to conditions, the existence of mutual conditions that must be performed simultaneously

required to provide restitution

in a few states, a minor who contracts for the purchase of a good might be

performance

in a unilateral contract, the offeree provides consideration in the form on

difference in value between a good hand and the hand received

in the Hawkins case, as reported by our textbook, the court decided to base the plaintiff's damages on

the sale of land

in the Lucy case, the plaintiffs wanted specific performance under a contract for

house

in the case of Kase v. French and French, as reported by our textbook, the property at the heart of the dispute was a

unilateral mistake

in the case of aydin corp v. US, the legal issue for the court to decide involved the contract law issue of

a minor contracted for the purchase of a car

in the case of halbman v. lemke

a legally enforceable contract existed

in the case of hamer v. sidway, the court found

consideration

in the case of hamer vs sidway, the key contract element in dispute was

expectation damages

in the case of hawkins vs. mcGee, the court awarded

a contract of sale existed

in the case of leftowtiz v. great minneapolis surplus store, the court found

smoking marijuana

in the case of shelton vs. oscar meyer food corp, of what was the plaintiff accused by his employer

shannon and bruce contract when bruce had been previously adjudicated mentally incompetent for purposes of contract formation

in which of the following situations is a court most likely to find a contract is void

gen corp promises to pay a supplier if the supplier does not sue Gen Corp for breach of contract

in which of the following situations is a court most likely to find a legally enforceable contract

a minor purchases food necessary for their existence and the minor consumes it

in which of the following situations is a minor most likely to have to pay what he or she has used under a contract regardless of the state in which they live in? assume the minor still has an obligation to pay for what they had purchased

injunction

is a court order that demands a defendant stop performing an action

jack may have revoked his offer during the phone call which makes the mailbox rule inapplicable

jackk offers to sell his automobile for $10,000. Jill says she must think about that she is not rejecting his offer. Jill goes home that day and comes to the realization that $10,000 is maybe too much for the car. she realizes this after looking online and finding out that comparable cars sell for only $8000. She calls Jack and tells him that other comparable cars sell for only 8000. Jack replies that Jill should buy one of those cars becasue he is not interested in selling the car at such a low price. In fact he says, I should not have offered this car to you for only 10,000. The two then complete their phone call. Jill really wants the car so she sends Jack a letter of acceptance by mail at 4pm by placing it in the drop box at the post office. what result?

voidable

james is 16 years old and wants to purchase a cell phone plan without his parents knowledge. he signs the contract, and then realizes he can't afford it. this contract is

reformation

jamil and nathan have a contract under which nathan is tobuild Jamil a house. after discovering an underground spring, the two parties decide to forgo building the basement of the house. jamil and natahn cannot agree on how the changes should be made to the contract nathan petitions a court. nathan should seek which of the following remedies

kerry might not have to make restitution as it depends on the law of her state since the car was not a necessity

kerry is a minor. she purchases a car. the car is a luxury since her parents have provided her with a car already. Kerry just wanted a fancy car. Kerry lies about her age when buying the car. which of the following statements is true

grace is an indended donee beneficiary

kevin enters into a contract with samantha. under the contract samantha is supposed to teach kevin's daughter Grace to play the piano. which of the following statements is true

he is an intended beneficiary and has the right to sue moving company under contract law

maggie hires a moving company to move her son jack to college. maggie signs a written contract for service with the moving company. maggie pays the moving company for their service. which of the following statements are true about jack

mandy must pay for the second month's rent if she lived there during the second month because it was a necessity

mandy is a minor for purposes of contract law. she rents an apartment and pays the first month's rent. she does not pay for month number 2 and then moves in with her best friend, melody. assuming the apartment that mandy rented was a necessity, which of the following statements is true

mariah and edward most likely do not have a contract as she was merely soliciting bids

mariah wants to build a swimming pool in her backyard. Edward comes to mariah's house and says he can build the swimming pool for a price of $50,000 or maybe at most $60,000. Mariah says that sounds like a good deal. i would be willing to pay up to $70,000 for a new pool. Based on these facts alone, which of the following is true

anticipatory repudation

mark hires anthony to give him a guided tour of italy during the month of june. during the month of april, anthony informs mark he will not be able to accompany him on the trip. anthony's notice to mark is referred to as

substantial performance

means a party has not provided complete performance but has not committed a material breach

complete performance

means a party performed the duties under the terms of the contract exactly as specified

without reserve

neither the auctioneer nor the seller can withdraw an item for sale once bidding has started

statement of future intention

not considered a legally binding offer. EX: I will sell my business in ten years for $500,000.

a promise to pay for a debt

not legally required to be paid; often enforceable in courts even if no consideration is present

donee beneficiaries

not owed a performance because of an existing duty but because a party to the contract has decided to provide them a benefit

procedural unconscionability

occurs when a contract is created as part of a process that a court finds to be unconscionable

novation

occurs when a party agrees to discharge their duties under a previous contract by subsituting a new contract that creates new obligations on the behalf of the parties

negligent misrepresetnation

occurs when a party breaches their duty of care toward another by stating something that is untrue

material breach

occurs when a party does not perform a significant duty under their contract

innocent misrepresentation

occurs when a party makes a material representation that turns out to be false but does not do so intentionally

anticipatory repudiation

occurs when a party to a contract informs the other party to a contract that it will be unable to perform under the terms of the contract

fraudulent misrepresentation

occurs when a party to a contract makes an intentional misstatement of a fact with an intent to deceive, upon which the other party justifiably relies and suffers damages because of their reliance

mutual rescission

occurs when both parties agree to return to their pre contracting position and suspend performance under their previous contract through a new contract

unilateral mistake

occurs when only one party to a contract is mistaken

contract modification

occurs when parties to a contract agree to change the obligations required under their contract

offeree

person to whom the offer was made

bilateral contract

promise for a promise

conforming goods

radiator company sends 100 radiators to kar manufacturing company as part of a sale contract. the goods meet the requirements and specifications of the contract. under the UCC, the radiators would be referred to as

mitigate

reduce damages by taking action to reduce the loss suffered from a breach of contract

does not require consideration be given in exchange for a contract modification

regarding consideration, the UCC is different from the common law of contracts because it

minors might be able to lie about their age and still have the legal right to disaffirm a contract in some states

regarding minors, which of the following statements is true

release

requires (1) a writing to evince the new agreement, (2) new considerations, (3) the parties to negotiate in good faith

restitution

restoring the other party to their original position

substantive unconscionability

results when a court finds the terms of a contract, or the entire contract, to be extremely unfair

the term regarding insurance will become part of the contract as long as it is immaterial and rexcon does not object to it

rexcon industries, a merchant of machine parts, sends a purchase order for 2000 machine parts to Macheene Manufacturing, a merchant of machine parts. macheene accepts the offer and sends an acknowledgment letter and invoice to rexcon. in the acknowledgment and invoice it states that rexcon must insure the parts while in transit. this was not in the original offer made by rexcon. which of the following statements is true under UCC 2-207

scott contracts to work with russ for 9 months

scott agrees to contract with Russ. which of the following contracts would not be subject to the statute of frauds

sale of goods

scott enters into a contract with hannah. for article 2 of the UCC to apply and a court to find a legally enforceable contract, the contract would have to be for

exculpatory clause

shelly is running the color run in New Mexico on the hottest day of the year. in exchange for admittance, she signs a contract. while running she duffers from a heat stroke due to the conditions. as provision in the contract states the race sponsors are not liable for her heat stoke would be referred as

nominal damages

small amount of damages awarded in a contract breach case that are intended to establish liability on the party of the breaching party but not necessarily compensate the party for damages realized

merchant

someone who deals in the kind of goods contracted for or who otherwise holds himself or herself out as having special knowledge or skill related to the goods involved

minor

someone who has not reached the age of majority, which is 18 in most states for contract law purposes

four main forms of equitable relief

specific performance, injunction, rescission, and reformation

choice of forum clause

specifies the court forum that will hear a breach of contract disputer in the event one occurs

ted may disaffirm the contract but must do so immediatey

ted is intoxicated. he enters to a contract with sophia for the purchase of a computer. sophia knew ted was intoxicated so she had him sign a written contract. which of the following statements is true

a contact for the sale of a parcel of real estate

that statute of frauds would apply to which of the following contracts

additional terms being added to an acceptance of an offer under the UCC

the Roto-Lith case involved which of the following contract law issues under the UCC?

sales contract

the UCC primarily governs what type of contracts

a contract for tree removal services

the UCC would least likely apply to which of the following contracts

rescission

the act by which a court cancels or undoes a contract

contractual capacity

the capacity required by law to enter into contracts

the statute of frauds

the case of Newberry v. George included the legal concept of

compensatory damages

the case of siegel vs. western union telegraph company involved a legal issue regarding

a mathematical or bookkeeping error

the defense raised in the case of aydin corp was

expectation damages

the difference between the position where the plaintiff expected to be and where the plaintiff was left after the breach

emancipation

the legal process by which a minor becomes independent of their parents under the law, thereby losing their status as a minor

consideration

the legal value provided in a bargained for exchange for a promise

ratification

the minor chooses not to disaffirm the contract but instead give it legal force

rejection

the offeree's statement or other conduct that states the offeree's desire to reject an offer and refuse acceptance

an employment contract

the oscar meyer case centered around a legal issue regarding

contradict the terms of the contract

the parol evidence rule prevents evidence of prior negotiations if the evidence is presented to

prior negotiations

the parol evidence rule was designed to prevent courts from hearing testimony in contract law cases regarding

mutual assent

the parties to a contract mutually agreed to the terms and conditions of the agreement in a way that resulted in a meeting of the minds

economic duress

the party claiming economic duress must prove the other party to the contract engaged in (1) wrongful behavior (2) that caused financial hardship and (3) the damaged party had no other alternatives

delegator

the party who delegates a duty

assignor

the party who transfers a right

obligee

the person to whom a duty is owed

puffing

the process by which a seller overstates or exaggerates the value of performance of a good

palimony

the promise to pay alimony to a person is who was not legally one's spouse but had lived together with the individual in a close relationship similar to that of spouse

with reserve

the seller or auctioneer may withdraw the item for sale at any time beforet he auctioneer accepts the highest bid and declares the item to be sold

click-on agreements

the transactions because the user must click on the box to certify their assent when accepting an offer routine

disaffirm

to cancel a contractual agreement

breach of contract

to fail to perform one's duties under a contract

cure

to fix the defective goods or provide conforming goods in place of the nonconforming goods

lucid

to understand the consequences of one's actions

material

under UCC Section 2-601 the courts have relaxed the rule of perfect tender to mean that goods must be free of defects that are considered

substantial performance

under the common law of contracts, good faith is required for the contract law concept of

acceptance

under the common law, the mailbox rule applied to an

an acceptance of an offer

under the common law, the mailbox rule applies to

two parties of a contract governed by the UCC may modify the terms of the contract without providing new considerations

what agreements are enforceable without additional considerations

guilty knowledge

what does scienter mean

all of these answers are correct

what duties cannot be delegated

contract stated in verbal words or written words

what is an express contract

bilateral

when two parties verball exchange promise to perform in the future, and state law provides no special legal requirements for such contract can be labeled as

auction

where the auctioneer places an item for sale and solicits bids from those in attendance

reformation

which equitable remedy is used when the parties imperfectly expressed their agreement in writing (example small drafting mistake was made)?

an advertisement offering 10 shirts for free to the first 10 customers on the following monday

which of the following advertisements would most likely constitute an offer under the common law

an agreement which a court finds to be unconscionable because of its terms

which of the following agreements will always fail to give rise to a contract enforceable in a court of law

the right to receive a personal service

which of the following assignments would state law, or the common law, most likely prohibit

involves an event that makes it impossible or at least difficult to achieve the purpose of the contract

which of the following best describes frustration of purpose

intentional or fraudulent misrepresentation

which of the following contract defenses requires the plaintiff prove intent on the party of the defendant

a contract for employment lasting 18 months

which of the following contracts would be subject to the statute of frauds

the sale of a home

which of the following contracts would be subject to the statute of frauds

a lifetime contract for personal training services

which of the following contracts would not be subject to the statute of frauds

an executor's promise to pay for the debt of the deceased

which of the following contracts, agreements, or promises would be subject to the statute of frauds

mistake of law about a material fact

which of the following defenses against contract enforcement would be the least effective

innocent misrepresentation

which of the following does not requires a breach of care, intent to influence, or intent to decieve

a release

which of the following generally requires a writing

condition precedent

which of the following is defined as a condition which must be met before a party is required to perform under the contract

void

which of the following is defined by the textbook as "no contracts at all"

plaintiff made a verbal offer

which of the following is not a requirement of an implied-in fact contract

past consideration

which of the following is not a requirement that courts require for a contract

exchange of promises

which of the following is not an element necessary for the formation of a unilateral contract

intention to later reduce to writing

which of the following is not commonly recognized as an exception to the statute of frauds

frustration of purpose

which of the following is not considered an objective impossibility by the textbook

past performance of a lawful act

which of the following is not considered consideration for purposes of contract law

writing

which of the following is not listed by a textbook as a necessary element of a contract

it requires the signature of the party against whom the contract is being enforced

which of the following is true regarding the Statute of Frauds

the UCC treats a merchant of goods slightly different than a non-merchant in some situations

which of the following is true regarding the UCC as applied to a contract

tom fails to perform a major obligation required under his contract with nancy

which of the following scenarios would most likely constitute a material breach

courts are not interested in them

which of the following statements applies to unilateral mistakes

the parol evidence rule prohibits evidence of prior negotiations if the evidence is used to contradict the terms of a fully integrated contract

which of the following statements is accurate regarding the parol evidence rule

contracts entered into by minors for necessities may be disaffirmed but require the minor to pay for what they have used

which of the following statements is true

exculpatory clauses attempt to relieve a party from liasion

which of the following statements is true

course of dealing

which of the following terms means the court looks to see how parties have interpreted an ambiguous term under prior contracts

shrink-wrap agreement

which of the following types of agreements requires the buyer to agree to terms that are contained in a sealed box before the buyer can purchase the good

nominal damages

which of the following types of damages is generally very small in nature is not meant to necessarily compensate the plaintiff in a contract law case

counter-offer

which of the following vocab terms creates a rejection of an offer to contract

disaffirm

which of the following vocabulary terms means to cancel a contractual agreement

an inquiry by the offeree

which of the following will not terminate an offer under contract law

promise to pay money

which of the following would be considered consideration for purposes of forming a contract

Samantha says she may or may not pay her friend for her services

which of the following would least likely constitute consideration for purposes of contract law

an illusory promise

which of the following would not constitute consideration under the common law of contracts

implied-in-fact contract

which of the following, by its definition, generally does not have an express agreement

the offeree

who can accept and offer

merchant

according to the textbook, which of the following is non a minmum requirement for a legally binding contract under the common law

a release

according to the textbook, which of the following requires both consideration and written evidence

Acceptance

an ... is valid as soon as it is put in the mail

reformation

an equitable remedy that a court uses to change or modify the terms to a contract

complete performance

assume Lee is a party to a contract under which he is to provide services in exchange for payment. if provided by Lee, which of the following levels of performance will relieve Lee of contractual liability

exculpatory clauses

clauses that attempt to limit the liability of a contractual party

past consideration

consideration that would be legally sufficient to form a contract but the consideration was given before the offer was made

executory contracts

contracts for which one party still owes performance

contract

legally enforceable promise. need an agreement, consideration, capacity and legal subject matter

void contract

no contract at all and cannot be enforced by a court

bilateral mistake

occurs when both parties to a contract are mistaken

outputs contract

one in which the buyer agrees to purchase all of the output a seller produces

creditor beneficiaries

owed performance by one of the parties because of a preexisting obligation owed to the intended beneficiary

disaffirmance of a contract by a minor

the case of halbman v. lemke involved the legal issue of

assignee

the party receiving the right

specific performance

to do specifically as promised

a contract for the sale of a good costing less than $400

under the statute of frauds, which of the following agreements, promises or contracts would not require written evidence

disaffirm

until reaching the age of majority for contract law purposes, a minor has the right to cancel a contract. which of the following terms is the vocabulary term used to describe this act of cancellation

they must occur before performance is required

when must conditions precedent take place

anticipatory repudiation

which of the following contract law concepts does not excuse a party from performance under contract law

money damages

which of the following is not listed by the textbook as an equitable remedy available to a plaintiff

if the offeror of a services contract dies, the offer terminates upon death

which of the following is true

the UCC applies to a contract for the sale of goods

which of the following is true regarding the UCC as applied to a contract

jennifer is mistaken as to the identity of the products she is contracting to purchase and so is erick, the other party to the contract

which of the following mistakes is most likely to qualify as a defense under contract law

value given in bargain for a promise

which of the following statements most adequately describes the contract law concept of consideration