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Which of the following is a threat that can create duress?
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Which type of mistake gives both parties the right to rescind?
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Business Law Test #3
| Question | Answer |
|---|---|
| Which of the following is a threat that can create duress? | all answers listed create duress |
| Which type of mistake gives both parties the right to rescind? | bilateral |
| Which of the following is not a requirement for promissory estoppel? | donative intent |
| Which types of business contracts are generally enforceable even though there is some uncertainty as to amount of performance is legally required? | output & requirement contracts ( |
| Promissory estoppel applies to which of the following transactions? | all of the answers listed apply |
| Which are elements of undue influence? | both relationship of trust & persuasion |
| Which of the following does not describe an event that will terminate an offer? | offeror is admitted to the hospital for tests |
| When economic threats occur, courts look at | both the threat and the victim's practical alternatives |
| To prevent a claim of undue influence, the stronger party in a relationship of trust should_________? | all answers listed are correct |
| Which is NOT one of the three requirements of an offer? | offer is only social. ( |
| legal value | Change in the legal position of a party as a result of the contract. |
| offer | Proposal that expresses willingness of the offeror to enter into a legally binding agreement. |
| past consideration | Act that has already been performed and thus cannot be consideration for a promise in the present. |
| offeree | Party to whom an offer is made |
| counteroffer | Response by offeree, with new terms, which ends the original offer. |
| promisee | Person to whom a promise is made. |
| gift | Voluntary transfer of ownership of property without consideration. |
| genuine assent | Consent or agreement not clouded by fraud, duress, undue influence or mistake. |
| fraudulent misrepresentation | Deliberate false representation or concealment of a material fact, which is meant to and which does induce another to make an unfavorable contract. |
| contract | Agreement that is legally effective and enforceable in court. |
| acceptance | Affirmative response necessary to trransorm an offer into a contract. |
| consideration | Promise or action of one person in exchange for the promise or the action of another person. |
| option | Contract to leave an offer open for a period of time in exchange for other consideration. |
| composition of creditors | Agreement by all creditors to accept something less than the total amount of their claims in full satisfaction of a debtor's obligations. |
| ratification | Approval of a voidable contract. |
| termination | Conclusion of the legal existence of the partnership/contract |
| mirror image rule | Requirement that the terms in an acceptance exactly match the terms in the offer. |
| voidable | Contract in which the injured party can withdraw from the transaction. |
| rescission | To offer to give back what you received via a contract while demanding return of what you gave. |
| revocation | Offeror's act that invalidates an offer |
| unilateral mistake | Statement of a material fact which is false but which the speaker thought was true. |
| promissory estoppel | Enforcement of a promise to avoid injustice, even though no consideration is given for it. |
| forbearance | Refraining from doing what one has a right to do. |
| nominal consideration | Token consideration, which bears no relation to the real value of the contract. |
| duress | Use of an improper act or threat to obtain an expression of agreement. |
| undue influence | Overpowering of another's free will by taking unfair advantage to induce the person to make an unfavorable contract. |
| bilateral contract | Binding agreement created by an offer that is accepted by a promise of performance |
| mutual mistake | Mistake about an important fact believed by both parties to a contract. |
| firm offer | Signed writing by a merchant promising to leave an offer open |
| promisor | Person who makes a promise. |
| Which of the following is NOT one of the six major requirements that must be satisfied before courts will treat transaction as contracts? | intent |
| Rescission will be granted for unilateral mistake if | the mistake is induced |
| Which statement below is NOT an element that must be proven for misrepresentation? | individual (s) unaware the statement was untrue |
| If a contract required the payment of $10 for a property worth $100,000, the $10 would be | nominal consideration |
| Courts will grant those injured by innocent misrepresentation | rescission |
| Which of the following is NOT a step used in interpreting a contract using Specific Rules of Construction? | Analyze signatures on the contracts to determine authenticity. |
| Which transaction is NOT within the Statute of Frauds? | contract to pay $299 for purchase of a car within 20 days |
| Which of the following is a legal agreement? | Agreement made with a licensed professional |
| assignor | One who transfers contractual rights. |
| unconscionable contract | Grossly unfair contract for the sale of goods. |
| assignment | Transaction by which a party transfers contractual rights to another. |
| substantive unconscionability | Element of unconscionability shown in the terms of the contract. |
| obligor | Person who owes a duty under a contract. |
| executed contract | contract that has been fully performed |
| quasi-contract | Obligation that is enforced as if it were a contract in order to prevent unjust enrichment of one party. |
| compounding a crime | Accepting something of value for a promise not to inform on or prosecute a suspected criminal |
| breach of contract | Failure to perform a legal duty or agreement |
| collateral promise | Promise to pay a debt but only if someone else fails to pay. |
| usury | Charging interest on a loan beyond the legally permitted maximum rate. |
| discharge of contract | Termination of contractual obligations |
| executory contract | Contract that has not been fully peformed. |
| contract of adhesion | Contract in which the more powerful party dictates all the important terms. |
| procedural unconscionability | Gross unfairness in how a contract is created. |
| Which item is a legal example of a transfer of contractual obligation by a company/individual? | Mortgage company selling your mortgage contract to another bank/mortgage company. |
| Which item below is a true statement regarding delegating contractual duties? | all answers are correct |
| Many contracts contain legal and illegal portions and many times courts may enforce the legal portion. What type of contract is this? | Divisible contract ( |
| All of the following are essential terms required to create a valid offer except | the name of the person preparing the contract |
| The difference between an executed contract and an executory contract is? | An executory contract is in process of being performed and an executed contract is completed. |
| Which item is NOT an obstruction of legal procedures? | paying an expert witness to testify |
| Which of the following is an exception to the Parol Evidence Rule? | all answers listed are correct |
| A contract in which no separation is made for the legal and illegal parts of the contract | indivisible |
| Which of the following is NOT one of the 3 elements in the agreement to gamble? | must purchase |
| Which of the following is NOT an exception to common law when enforcing illegal agreements? | one party breaches the illegal agreement |
| The state of not knowing a contract is illegal | excusable ignorance |
| Specific performance will be granted if | The subject matter of the contract is unique |
| Charging interest at a rate higher than allowed by law is called | usury |
| How can contracts be discharged? | all answers are correct |
| Which is an example of discharge of a contract based upon impossibility of performance? | death or disability |
Created by:
stephparnell