LSTD 2106 Exam 2 Question and answers verified to pass
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Course
LSTD 2106
Institution
LSTD 2106
LSTD 2106 Exam 2 Question and answers verified to pass
Define offer - correct answer -a promise or commitment to do or refrain from doing a specified activity
-the expression of a willingness to enter into a contract by the offeror's promising an offeree that she will perform certain obligati...
LSTD 2106 Exam 2 Question and
answers verified to pass
Define offer - correct answer ✔-a promise or commitment to do or refrain
from doing a specified activity
-the expression of a willingness to enter into a contract by the offeror's
promising an offeree that she will perform certain obligations in exchange for
the offeree's counterpromise to perform.
mailbox rule - correct answer ✔-provides that the acceptance of an offer is
generally effective upon dispatch of the acceptance when sent in a
commerciallyreasonable manner and not when the acceptance is received by
the offeror
-governs common law contracts
mutual mistake - correct answer ✔-both parties hold erroneous belief
-may be the basis for canceling a contract
-also called avoiding the contract
Consideration - correct answer ✔-the mutual exchange of benefits and
detriments
-each party receives something of value from the other and each party gives
up something of value, called legal detriment, to the other
-results in a bargained-for exchange
undue influence - correct answer ✔Allows the influenced party to avoid a
contract when the court determines that the terms of the contract are unfair
and the parties had some type of relationship that involved a fiduciary duty or
some duty to care for the influenced party.
,-Improper pressure of a trusted relationship
Statute of Frauds - correct answer ✔the law governing which contracts must
be in writing in order to be enforceable.
•The statute's purpose is to prevent fraud by requiring that certain contracts
have written evidence of their existence and terms in order to be enforceable.
condition subsequent - correct answer ✔an event that occurs after the
performance under the contract and discharges the parties' obligations
Parties agree on terms and the parties perform the contractual obligations in
good faith in order to complete the contract.
•This completion is known as discharge, because both parties have now
"discharged" their obligation to the other by performing the agreed-upon
duties.
rescission - correct answer ✔neither party has fully performed, the parties
may agree to cancel the contract
-each party gives up rights under the contract in exchange for the release by
the other party from performing their obligations
substitute agreement - correct answer ✔generally used to compromise when
two parties have a dispute as to performance of the contract and wish to
amend its terms.
-immediately discharges any obligations under the original contract.
novation - correct answer ✔a kind of substitute agreement that involves a
substitute third party rather than a substitute promise
-revokes and discharges all of the replaced party's obligations under the old
contract.
Impossibility
, •Impracticability
•Frustration of purpose
Impossibility - correct answer ✔After the parties have entered an agreement,
the contemplated performance of the obligations may become impossible and,
therefore, may be subject to discharge.
-must be objective
Frustration of Purpose - correct answer ✔may be used to discharge an
obligation if, after the parties enter into an agreement
-a party's principal purpose is substantially frustrated without her fault
-some event occurs, when the nonoccurrence of the event was a central
assumption of both parties when entering into the contract
-the parties have not otherwise agreed on who bears the risk of such an
occurrence.
Compensatory Damages - correct answer ✔Attempt to put the non-
breaching party in the same position she would have been in if the other party
had performed as agreed
-Out-of-pocket damages, Profits
Liquidated Damages - correct answer ✔Damages that the parties agree to
ahead of time.
-Damages cannot be excessive so as to penalize the breaching party.
Specific damages - correct answer ✔Remedy whereby a court orders the
breaching party to render the promised performance by ordering the party to
take a specific action.
-Available only when the subject matter of the contract is sufficiently unique so
that money damages are inadequate.
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