Contract Law
Offer and Acceptance
Genuine Agreement
Mistakes in Contracts
Misc.
100
Any agreement enforceable by law
Contract
100
Advertisements in newspapers, magazines and catalogs are considered...
Invitations to negotiate
100
To cancel a contract is called
Rescind
100
Type of mistake that allows contracts to be avoided by either party.
Bilateral
100
Give an example of when a false statement that was known to be false by the offeror and made to induce someone to enter a contract would NOT be fraud.
When an element of fraud is not present
200
Explain the difference between Voidable and Unenforceable contracts
Void: Contract missing an required element, therefore not valid Unenforceable: Court cannot uphold even though all elements present, often due to expiration of time
200
An acceptance that changes the terms of the original offer is called...
Counteroffer
200
Important information that is relied upon to make a decision
Material Fact
200
Mary had a valid agreement to sell her antique diamond ring to Kate. The ring was in a bank safe deposit box. Unknown to both of them, the bank was robbed today and the ring was stolen. What type of bilateral mistake occured
Mistake to possibly of performance. Contract is voidable
200
A false statement made without the intent to deceive that induces someone to enter a contract.
Innocent misrepresentation
300
Explain the difference between a Bilateral and Unilateral contract
Bi: Two sides make promises Uni: One side makes a promise in exchange for action by another
300
What TWO requirements must be met for an acceptance to be valid?
1. Unconditional 2. Follow rules regarding method of acceptance
300
Name THREE ways that agreements can be made defective by falsehood
1. Fraud 2. Concealment 3. Misrepresentation
300
Mr. McCarthy wants to sell h his house at a price of $400,000. He makes an offer to Mr. B and by mistake he quotes a price of $200,000 and Mr. B gives his acceptance. What type of mistake occurred AND is it voidable?
It is Unilateral mistake and Contract cannot be avoided.
300
When a person uses unfair and improper persuasive pressure to force another person to enter into a contract...
Undue Influence
400
Name the SIX elements of a contract
1. Offer 2. Acceptance 3. Genuine Agreement 4. Consideration 5. Capacity 6. Legality
400
What are the THREE basic requirements of an offer?
1. Serious 2. Definite and certain 3. Communicated
400
Name and describe the THREE types of duress that can make an agreement defective
1. Physical: physical contact to force another to enter a contract 2. Emotional: Threat of physical harm 3. Economic: Threat to profit
400
Scott and his neighbor enter into a agreement for Scott to buy his neighbors Lexus They had verbally agreed for Scott to pay $11,000 but the contract is written to pay $110,000 accidentally and both sign it. What type of mistake occurred and is it voidable?
Bilateral mistake to the price of subject matter and yes it's voidable.
400
An individual that was a victim of fraud may be entitled to what 2 options if they win a lawsuit
Rescind contract and punitive damages
500
Why are ads treated as invitations to negotiate?
Sellers have limited merchandise available and couldn't reasonably sell ad advertised price to everyone
500
What are the FIVE ways an offer can be terminated?
1. Revocation 2. Rejection 3. Counteroffer 4. Expiration of time 5. Death or insanity
500
What are the FIVE elements of fraud?
1. False representation of fact 2. Knowledge of it being false 3. Intent to deceive 4. Reliance on information 5. Actual loss
500
Eric agrees to buy Ian's motorcycle. Eric believed he was buying Ian's 2013 Yamaha valued at $5,000. Ian, in fact, was planning to sell is 1994 Yamaha valued at $1,000. What type of mistake is present AND will either party be able to rescind the contract?
500
Damages in excess of the amount lossed that may be awarded to the plaintiff in a civil lawsuit for fraud
punitive damages
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