Terms 1
Any source of law that a court must follow when deciding a case.
Binding authority
An agreement that can be enforced in court; formed by two or more parties, each of whom agrees to perform or to refrain from performing some act now or in the future.
Contract
A court adjudicates Heath mentally incompetent and appoints Ike to be his guardian. Later, without Ike's knowledge, Heath signs a contract to sell his farm to Jarvis for its real market value. The contract is
a. enforceable if Heath comprehended the consequences.
b. enforceable if Heath knew the market value of the farm.
c. enforceable if Heath was the record owner of the farm.
d. void.
d. void.
Jed enters into a contract with Jan's Garden to provide water for Jan's irrigation needs. Jed fails to deliver. Jan initiates a suit against Jed, asking the court to order Jed to perform. Jan is
a. the plaintiff.
b. the defendant.
c. the binding authority.
d. the persuasive authority.
a. the plaintiff.
Legal encyclopedias, Treatises, Law review articles, and Restatements are examples of primary or secondary sources of law?
An agreement that arises when a buyer, engaging in a transaction on a computer, indicates his or her assent to be bound by the terms of an offer by clicking on a button.
Click-on agreement
A state statute under which certain types of contracts must be in writing to be enforceable.
Statute of frauds
Larry offers to service Mae's water system for one year for $500. Under the mirror image rule, Mae's response will be considered an acceptance if the terms of the acceptance
a. change the items offered, but do not change the price.
b. change the price, but do not change the items offered.
c. exactly mirror those of the offer.
d. change both the price and the items offered.
c. exactly mirror those of the offer.
Rachel, who is Sam’s guardian, convinces him to buy 50,000 basketball cards from her friend Jake at a rate far above their value. Rachel may be liable for
a. duress.
b. fraud.
c. mistake.
d. undue influence.
d. undue influence.
What are the 4 required elements of a valid contract?
Agreement (Offer and acceptance).
Consideration (Legally sufficient and bargained-for).
Contractual Capacity (All parties must be competent).
Legal (Purpose of contract must be legal at time of execution).
In regard to minors, the act of being freed from parental control.
Emancipation
A fictional contract imposed on parties by a court in the interests of fairness and justice.
Quasi contract
Derick threatens the beat up Eli in order to force Eli to sell his company, March Madness Hoops. This is
a. duress.
b. fraud.
c. mistake.
d. undue influence.
a. duress.
Raven Co., offers to sell a house to Atchison, Inc. Atchison, Inc. says that it will pay Raven Co. $1,000 to hold the offer open for three business days. This
a. creates an illegal contract by adding a clause to Raven, Co.'s offer.
b. makes the offer irrevocable for three days if Raven, Co. accepts.
c. negates Raven, Co.’s offer by changing the price term.
d. voids Raven, Co.'s offer by extending the time term.
b. makes the offer irrevocable for three days if Raven, Co. accepts.
What is the difference between a forum selection clause and a choice-of-law clause?
Forum-Selection Clause: Location or jurisdiction where disputes will be resolved.
Choice-of-Law Clause: Disputes will be settled in accordance with law of particular jurisdiction.
An assertion or action by a party indicating that he or she will not perform an obligation that he or she is contractually obligated to perform at a future time.
Anticipatory repudiation
The person to whom contract rights are assigned.
Assignee
Eric believes that a higher, or universal, law exists that applies to all human beings. Eric asserts that each written law should reflect the principles inherent in this higher law. Eric
a. is a legal positivist.
b. adheres to the historical school of legal thought.
c. is a legal realist.
d. adheres to the natural law tradition.
d. adheres to the natural law tradition.
Oliver signs a covenant not to compete with his employer, Bene, LLC. The covenant will be enforced if it
a. does not require either party to obtain a business license.
b. is reasonable with respect to geographic area and duration.
c. relieves the employer from liability for any injury to Orin.
d. none of the choices.
b. is reasonable with respect to geographic area and duration.
1. Natural Law School (Assumes a higher, or universal, law exists that applies to all human beings and that written laws should reflect the principles inherent in natural law. Ex. human rights)
2. Positivist School (States that there is no law higher than the laws created by a national government. Laws must be obeyed to prevent anarchy even if they are unjust.)
3. Historical School (Emphasizes the evolutionary process of law. Concentrates on the history and origins of the legal system.)
4. Legal Realism (Based on the idea that law is shaped by social forces and needs.)
“as much as he deserves,” that describes the extent of compensation owed under a quasi contract.
Quantum meruit
A “standard-form” contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms.
Adhesion contract
Issac owes James $5,000. James assigns the right to this payment to Kip. Notice by James to Issac of the assignment
a. must be given immediately.
b. must be given within thirty days.
c. must be given within a reasonable time.
d. is not required.
d. is not required.
Chaz, a minor, signs a contract with Dana, an adult. The contract is voidable at the option of
a. neither party.
b. Chaz only.
c. either party.
d. Dana only.
b. Chaz only.
Void: If a court has previously determined a person to be mentally incompetent, any contract made by that person is void. The court will appoint a guardian who will represent the mentally incompetent individual and enter into binding legal obligations on his or her behalf.
Voidable: A party who is not determined to be mentally incompetent by a court of law may avoid a contract if at the time of contracting, that person (1) did not know he was entering into a contract or (2) lacked the mental capacity to understand its nature, purpose, and consequences.
Valid: A contract entered into by a person who is mentally ill—but not previously declared incompetent—may be valid if the person had capacity at the time the contract was formed, such as during a lucid interval (when a person’s intelligence, judgment, and will are temporarily restored).