BLAW CH. 16, 18, 20 Questions

_______________________ occurs when a contracting party refuses to complete the contract before the actual time of performance.

Anticipatory repudiation

Generally parents _______________________ liable for contracts entered into by their minor children.

Are not

Which of the following represents discharge of the contract by operation of law?

Bankruptcy Tolling of the statute of limitations Impossibility of performance

___________________________ is a basis for discharge by operation of law when performance of a contract is still objectively possible but would be extraordinarily injurious or expensive to one party.

Commercial inpracticability

____________ damages are the most frequently awarded.

Compensatory

_____________ performance occurs when all aspects of the parties' duties under the contract are carried out perfectly.

Complete

_________________________ occurs when all aspects of the party's duties under the contract are carried out perfectly.

Complete performance

_____________ conditions occur when each party's performance is conditioned on the performance of others.

Concurrent

A __________ is a particular event that must occur in order for a party's duty to arise.

Condition precedent

A __________ is a future event that terminates the obligation of the parties when it occurs.

Condition subsequent

A _________________ is proposed by an offeree, proposing a substituted bargain, differing from that proposed by the original offeror.

Counter offer

A _______________________ restricts what an employee may do after they leave a company.

Covenant not to compete

A person suffering from mental illness may have full, ____________ or __________ legal capacity to enter into a binding contract depending on the nature and extent of their mental deficiency.

Limited; no

A condition ____________ is a particular event that must occur in order for a party's duty to arise.

Precedent

________________ obligations are debts incurred in an initial contract. Such obligations are not within the statute of frauds; therefore, they need not be in writing to be enforceable.

Primary

According to the Uniform Commercial Code (UCC), parole evidence is admissible for the sake of clarification if it addresses ________ dealings between the parties or ______________ of trade in the business they are operating

Prior; usages

___________________________ involves the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.

Promissory estopple

__________________ damages are designed to punish the defendant and deter him from engaging in similar behavior in the future.

Punitive

Under the UCC's requirement for a written agreement, the contract for the sale of goods must at least state the ___________ to be sold, in order to be valid.

Quantity

The return of any property given up under a contract is called _________________.

Restitution

Within the stature of frauds, "land" encompasses

The land and soil itself, as well as anything attached to the land

An _________________ term in a contract is one that is so unfair it is void of conscience.

Unconscionable

The term________ refers to the fact that the agreement in question is so unfair that it is void of conscience.

Unconscionable

If a contract becomes illegal under a new statute, the contract is then _________________

Discharged

A "severable" contract is also known as a _______ contract.

Divisible

Under the _________ rule states that oral evidence of an agreement made prior to or contemporaneously with the written agreement is inadmissible when the parties intend to have a written agreement be the complete and final version of the agreement.

Equal dignity

An __________ clause releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered.

Exculpatory

A contract is considered ____________ if some of the duties under the contract have not yet been performed.

Executory

_________ occurs when, after reaching the age of majority, the person states orally or in writing that he or she intends to be bound by the contract entered into as a minor.

Express ratification

____________ conditions are those that are not explicitly stated but are inferred from the nature and language of the contract.

Implied

_____________ conditions are not explicitly stated but are inferred from the nature and language of the contract.

Implied

________ occurs when a former minor takes some action after reaching the age of majority consistent with intent to ratify the contract.

Implied ratification

An ______________ is an order forcing a party to do something or ____________ a party from doing something.

Injunction; prohibiting

______________ contracts are written contracts intended to be the complete and final representation of the parties' agreement.

Integrated

For contractual capacity ______________ persons include those under the influence of both drugs and alcohol.

Intoxicated

Monetary damages are _________ damages

Legal

When the parties to a contract agree to replace one of the parties with a third party, this is called a _______________.

Libation.

If a court orders __________________________, the breaching party must fulfill their obligation under the contract.

specific performance

Under the UCC, contracts for the sale of goods totaling more than ___________ must be in writing.

$500

Which of the following contracts does not "fall within" the Statute of Frauds writing requirement?

A contract for the sale of goods totaling $50

Which of the following agreements is likely to be held in violation of public policy?

A contract in restraint of trade An unconscionable contract

Which of the following is not an exception to the parole evidence rule?

A contract involving real estate

An ________________ contract is one that is offered on a "take it or leave it" basis.

Adhesion.

A person who has legal __________ has the mental ability to understand his or her rights and obligations under a contract.

Capacity

A person has legal ____________ to a contract if they have the mental ability to understand his or her rights and ______________ under the contract.

Capacity; obligations.

A secondary obligation, which falls within the scope of the Statute of Frauds writing requirement, occurs when a party outside a primary agreement promises to fulfill one of the original party's (primary debtor's) obligations if the original party fails to fulfill it. A secondary obligation is also called a _____________ promise.

Collateral Suretyship Secondary obligation

Sometimes, when a contract is entered into, both parties recognize that the contract is to fulfill a particular purpose, and the happening of that purpose is said to be a basic assumption on which the contract is made. If, due to factors beyond the control of the parties, the event does not occur, and neither party had assumed the risk of the event's nonoccurrence, the contract may be discharged based on the ___________ doctrine.

Frustration of purpose

Which of the following statements is/are correct concerning contracts made by intoxicated persons?

Generally, contracts made by the intoxicated persons are voidable If the intoxication just causes the person to exercise poor judgment, the contract is not voidable unless the other party unfairly capitalized on the impaired judgment. When the intoxicated person becomes sober, the contract can be ratified or disaffirmed; however, the courts will fairly liberally interpret behavior that seems like ratifying the contract once the intoxicated person becomes sober.

The _____________ terms of a contract are those terms that help the court to determine damages in the event of a breech.

Material

A ______________ breach ____________ the non-breaching party from their obligations under the contract.

Material; breach

When parties agree that they simply wish to discharge each other from their mutual obligations and cancel the contract, it is called ______________________.

Mutual rescission

_________________ damages may be awarded when there are no actual damages that result from a breach of contract.

Nominal

In a(n) ____________ the original parties and a third party all agree that a third party will replace one of the original parties and that the original party will then be discharged.

Novation

An _______________ contract ensures that an offer will in fact be held open for a specified period of time.

Option

The statute of frauds seeks to prevent unreliable _____________ evidence from interfering with a contractual relationship.

Oral/ verbal

The ____________ rule states that oral evidence of an agreement made prior to or contemporaneously with the written agreement is inadmissible when the parties intend to have a written agreement be the complete and final version of the agreement.

Parole evidence

The ____________________ rule is used to prevent attempts to use only oral evidence to prove agreements.

Parole evidence

Under the statute of frauds, _____________________ involve promises to pay the debt of another if the initial party fails to pay.

Secondary obligation

_________________ contracts contain multiple parts which can be performed separately.

Severable

Concurrent conditions exist when the parties are to perform their obligations for each other _______________.

Simultaneously

A condition _______________ is a future event that terminates the obligations of the parties when it occurs.

Subsequent.

______________ performance occurs when nearly all of the terms of the agreement have been complicated, there has been a good faith on the part of the obligor to complete all of the terms of the agreement, and there has been no "willful departure" from the terms of the agreement.

Substantial

In a(n) ____________ the parties agree that one party will perform his or her duty differently from the performance specified in the original agreement; after the new duty is performed, the party's duty under the original contract becomes discharged.

Substantial contract

Which of the following is not a recognized purpose of the Statute of Frauds?

The statute attempts to ease contractual negotiations by requiring sufficiently reliable evidence to prove the existence and specific terms of a contract. The statute prevents unreliable oral evidence from interfering with a contractual relationship. The statute prevents parties from entering into contracts with which they do not agree.

An agreement to commit a crime or a tort is _______________.

Unenforceable

A _____________ contract may be accepted by performance only.

Unilateral

If a debt is in dispute, or the party's dispute the fact that the money is owed, the debt is ______________

Unliquidated

________________ occurs when a party gives a loan at an interest rate exceeding the legal maximum.

Usury

When an agreement is deemed illegal, courts will label the contract ___________.

Void

As a general rule, any contract entered into by a minor is _____________ by the minor until he or she __________.

Voidable; reaches the age of majority or a reasonable time thereafter