Contract Formation
These are the three essential elements of most contracts
What are offer, acceptance, and consideration?
This is the amount of money that the court may order the defendant to pay to the plaintiff
What are damages
This kind of authority exists when the principal creates the reasonable impression that the agent is authorized to act on the principal's behalf
What is apparent authority
This business organization provides limited liability and operates as a separate legal entity
What is a corporation
All corporations in the world are separated into these two different types
What are public and private corporations
This term refers to the
the relationship that exists between the
individuals who create a contract
What is the privity of contract
This statute requires a party who has suffered a Breach of Contract to sue within a certain period
What is the statute of limitations
Agents owe this kind of duty to the principals, which is essentially a promise to act in good faith
What is fiduciary duty
These are the terms that define the fundamental characteristics of the corporation
What are the articles of incorporation
This liability is a type of offense in which a person acting on behalf of the corporation commits a prohibited act
What is absolute liability
It is the type of contract in which the
offeree provides something of value in
exchange for the offeror’s promise to
hold an offer open for a specific period
What is an option contract?
This type of loss would be unfair to hold the defendant legally responsible for in the court of law
What is a remote loss
This is a type of contractual relationship under which one party gives the other the right to operate its business system for a set of fees
What is a franchise
This is a payment of cash or property by the corporation to the shareholders authorized by the directors
What is a dividend
Shareholders can appoint these representatives to defend their interest at shareholders' meetings
Who are proxies (proxy holders)
This is the doctrine that prevents a party from retracting a promise that the other party has relied upon
What is the promissory estoppel
This is the process in which one contract is replaced with another
What is a novation
This is a situation where the agent makes a
careless error about whether there was authority
What is breach of warranty of authority
This is the legal term for the termination of a partnership relationship
What is dissolution
This is an extensive disclosure
document that management of a
corporation must prepare and make
public before the corporation issues
securities to the public that describes
the characteristics of the securities
and the corporation’s business
What is a prospectus
This rule states that an
acceptance that is communicated in
a non-instantaneous way is effective
where and when it is sent
What is the postal rule
If damages are not enough or appropriate, a judge can order the defendant to fulfill this equitable measure that would fulfill the contractual obligation
What is specific performance
This term applies to a situation when someone
accepts a contract that was negotiated
on their behalf but without their
authority
What is ratification
This is the principle that assumes the corporation will keep on operating in the foreseeable future
What is going concern
This offence occurs when an act prohibited by law is committed by a person who had the degree of knowledge or intention required for the offence
What is a mens rea