More Business Entities
Why are limited partnerships, limited liability partnerships, Limited Liability Companies and corporations required to have a specific indication of their business structure (such as “LP,” “LLC,” and “Inc.”) as part of their official business names?
To notify third parties of the limited liability of some or all of the owners
What does the principle of Pacta sunt Servanda mean in contract law?
Agreements must be honored by the parties involved
The exchange of something of value between the parties is called
Consideration
In contract law, what is the purpose of awarding monetary damages as a remedy for breach?
To compensate the non-breaching party for their losses
When does title to goods typically transfer from the seller to the buyer under a shipment contract?
When the goods are placed in the possession of the carrier
What is a key difference between a limited liability company (LLC) and a corporation?
LLCs are subject to single taxation
In the event a party breaches its obligations under a contract, the non-breaching party can bring a legal action. This is
Civil action
In contract law, whether the purpose and subject matter of the contract are lawful, is called
legality
A court order compelling the breaching party to perform the contract as agreed is known as
specific performance
The guarantee that the goods will be of average quality and fit for their ordinary purpose
implied warranty of merchantability
Which type of business organization is required to have a written operating agreement among its members?
Limited liability company (LLC)
What is a limitation for minors entering into contracts?
Minors can enter into any contract, but most can be voided at their discretion
In the context of contract formation, what prevents a party from going back on a promise if the other party reasonably relied on it to their detriment
what is the doctrine of promissory estoppel?
What do we call the requirement that contracts be written so it can be understood by the average person reading it
"plain English"
Which type of contract allows a seller to make multiple deliveries of goods over a specified period of time?
Installment Contract
In a limited partnership, who is typically responsible for the day-to-day management of the business?
General partners
A text from a friend offering to sell their smartphone for $100 is considered to be an _________ to enter into a contract.
offer
The full performance of their contractual obligations by all parties to a contract is known as:
discharge and performance
Which body of law primarily governs contracts for the sale of goods in the United States?
UCC - Uniform Commercial code
What is the purpose of the "perfect tender" rule under the UCC?
To ensure that the buyer receives exactly what was ordered
Which business form provides limited liability for all owners (members)?
Limited liability company (LLC)
A contract that has no legal effect
void
A failure to perform a significant aspect of the contract would be considered to be a ___________ breach
material
Under the UCC, what constitutes a "good" in the context of a sales contract?
Tangible and movable personal property
In a contract for the sale of goods, what is the "battle of the forms"?
A conflict in which both parties have differing terms in their contract forms