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MGMT 209|TAMU|Ch. 4 - Test 2 || Already Passed.

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Acceptance correct answers The offerees choice to accept the terms and conditions of a contract. Must be unconditional, unequivocal, and legally communicated. [In Texas, silence is normally not acceptance (Thurmond v. Wieser)] Agency correct answers A relationship in which one party (the princip...

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Publié le 17 août 2024
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MGMT 209|TAMU|Ch. 4 - Test 2 || Already Passed.
Acceptance correct answers The offerees choice to accept the terms and conditions of a contract.
Must be unconditional, unequivocal, and legally communicated. [In Texas, silence is normally
not acceptance (Thurmond v. Wieser)]

Agency correct answers A relationship in which one party (the principal) authorizes another
party (the agent) to act as the principal's representative in dealing with third parties.

Agent correct answers A representative of the principal and can bind the principal to third party
agreements in contracts and tort law

Apparent Authority correct answers Apparent authority depends on what is reasonably in the
mind of a third party, based on the statements or conduct of the principal.

Bilateral Contract correct answers A contract in which a return promise is required meaning that
both parties are promisors. e.g. A house painter promises to paint a home for $1000 and the
owner promises to pay $1000 thus creating an exchange of promises. "Promise for a promise"

Condition Concurrent correct answers A contract clause where each party's absolute duty to
perform is conditioned on the other party's absolute duty to perform. Only occurs when the
parties are to perform their respective duties simultaneously. e.g. During a house closing, seller
does not have to sign papers selling house to buyer until buyer signs papers buying house from
seller.

Condition Precedent correct answers A contract clause that identifies some condition that must
be met prior to the creation of an obligation under contract. e.g. A travel agent is not required to
pay for rooms at a ski resort unless the snow pack reaches 80 inches

Condition Subsequent correct answers A contract clause that follows, or is subsequent to, the
duty to perform. e.g. Company A and company B do business unless one is taken over by a giant
corporation. If either is taken over, the contract is terminated.

Consideration correct answers Something of value that is given up in return for the promise of
the other party to the contract.

Contractual Capacity correct answers Refers to the ability of a contracting party to understand
that a contract is being made and to understand its general nature. Normally assumed by the
court if you are intoxicated, insane, or a minor. (Buddy L Inc. v. General Trailer Co.)

Counteroffer correct answers A form of rejection in which the offeror becomes the offeree with a
counter proposal with slightly different conditions than the first offer that was made

Disaffirmance correct answers The legal avoidance, or setting aside, of a contractual obligation.

, Duress correct answers When someone forces another person to enter into a contract against his
or her will. e.g. A loan company threatens to break your legs if you do not deed over your house
to them and are forced to do so

Elements of a Contract correct answers 1) Mutual agreement between parties
2) Consideration
3) Contractual capacity of the parties
4) Legal subject matter
5) Genuine & real assent
6) Some contracts must be written

Executed Contract correct answers A contract that has been fully performed by all parties and
nothing remains to be done by either party. (B.L. Nelson & Associates v. City of Argyle)

Executory Contract correct answers A contract that has not been fully performed by either party
set in place to "fix" future obligations, thus eliminating uncertainty and allocating the risk of
future contingencies.

Express Contract correct answers A contract in which the terms of the agreement are fully and
explicitly stated in words, written or oral. e.g. signed lease for an apartment. (Harrison v.
Williams Dental Group)

Fruad correct answers Refers to misrepresentations of fact that are consciously intended to
mislead another. e.g. A con man that lies to you about a business transaction; you rely on his
facts and are "damaged" by them

Illusory Contract correct answers An expression cloaked in promissory terms that does not
actually involve a commitment by the promisor. (Spacek v. Maritime Association)

Implied by Fact Contract correct answers implied from the conduct of the parties; differs from
express in that the conduct of the parties, rather than their words, creates and defies the terms of
the contract; ex: sit in barber's chaira contract that is implied from the conduct of the parties. for
example, when one takes a seat in the barber chair it is ____ that he or she is bargaining for a
haircut...

Implied by Law Contract correct answers Also called a Quasi-contract. Little success rate in
court.

Implied Contract correct answers A contract whose terms are defined by conduct of the parties
rather than their words. e.g. When one takes a seat in a barber shop chair, it is implied that he or
she is bargaining for a haircut for a reasonable price, A non explicit agreement that affects some
aspect of the employment relationship

Mailbox Rule correct answers Used to determine the time of acceptance of an offer. If an
acceptance is placed in the mail with the correct mailing address, the offer is accepted at that
point instead of when it is actually received.

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