History Final Exam Part 2

30 terms by ljwitten 

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Valid Contract

is a promise, or set of promises, the breach of which the
law provides a remedy

Revocation

An offer is revoked when the offeror "takes it back" before the offeree accepts. In general, the offeror may revoke the offer any time before it has been accepted. Imagine that I call you and say, "I'm going out of town this weekend. I'll sell you my ticket to this weekend's football game for $75." You tell me that you'll think it over and call me back. An hour later, my plans change. I call you a second time and say, "Sorry, but the deal's off—I'm going to the game after all." I have revoked my offer, and you can no longer accept it.

voidable contract

because of the manner in which the contract was formed, the law permits one or more of the parties to void it

fiduciary

person who owes a duty of trust, confidence, and loyalty to another

arms' length contract

the description of an agreement made by two parties freely and independently of each other, and without some special relationship, such as being a relative, having another deal on the side or one party having complete control of the other. It becomes important to determine if an agreement was freely entered into to show that the price, requirements, and other conditions were fair and real. Example: if a man sells property to his son the value set may not be the true value since it may not have been an "arm's length" transaction.

mutual mistake

When both parties, and not just one of them, misunderstand the facts relating to a basic assumption on which a contract is made

Theft is to the criminal law as _____________ is to the civil law

Conversion- a civil wrong (tort) in which one converts another's property to his/her own use, which is a fancy way of saying "steals."

valid defenses to a defamation claim

-The statement was true
-The statement was an opinion.
-The person making the statement made it only to the plaintiff and not to any
third parties

If the law denies all liability for harm done by tortious or criminal activity, no one, including the victim, will have to pay for the harm. TRUE OR FALSE

False

A customer in a restaurant would be considered ___________ to
whom the restaurant owner owes a duty _____________________.

an invitee; of reasonable care

Laura, a brain surgeon, committed a negligent act when she ran a red light and injured Randy, a pedestrian crossing the street. Randy was a mentally impaired adult

Both Laura's and Randy's conduct will be based on the
"reasonable person" standard

promissory estoppel

Is used by the courts when they believe there is NOT
an enforceable contract present

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would. At this point, the contract is an

executory, bilateral, express contract.

Noncompetition agreements

- A contract limiting a party from competing with a business after termination of employment or completion of a business sale
-are designed to protect a business owner's investment by restricting potential competition.
-more common today than they were in the past, although policy issues they raised in the 1700s have never gone away

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be

enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated

Illusory Promise

A statement that appears to assure a performance and form a contract but, when scrutinized, leaves to the speaker the choice of performance or non-performance, which means that the speaker does not legally bind himself or herself to act.
example- "I'll sell you my car if I decide to sell it"

If Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees, a court will probably

not set aside the agreement based on the adequacy of the
consideration

An agreement

may violate public policy even if the agreement does not require a party to
commit a crime, tort, or violate a statute

If a contract is made with a person required by law to hold a license, and the purpose of the license is protection of the public, the contract made by an unlicensed person will generally be invalid and courts won't enforce it. TRUE OR FALSE

True

exculpatory clause

is one that attempts to release you from liability in the event of injury to another party. Exculpatory clauses are common. exculpatory clause is generally unenforceable when it attempts to exclude an intentional tort or gross negligence.
example- Seller is not responsible for property damage regardless of the cause
of the injury

The legal right to sue for a breach of contract is subject to a statute of limitations. TRUE OR FALSE

True

The "reasonable person" standard that has been used throughout this course for torts and contracts is a

Objective Standard

performance

The most frequent method of discharging a contractual duty

Not an essential element of an offer

Consideration

Nominal Damager

are a token sum, such as one dollar, given to a plaintiff who demonstrates that the defendant breached the contract but cannot prove serious injury

Bilateral Contract

a promise is exchanged for a return promise

Statute of Frauds

...A type of state law, modeled after an old English Law, that requires certain types of contracts to be in writing

The agreements that must be in writing are those:

- For any interest in land
- That cannot be performed within one year
- To pay the debt of another
- Made by an executor of an estate
- Made in consideration of marriage; and
- For the sale of goods worth $500 or more

novation

is a three-way agreement in which the obligor transfers all rights and duties to a third party. The obligee agrees to look only to that third party for performance.

repudiated

has formally notified the other side that he will not perform his side of the contract.

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