LEGL 2700 Practice Questions & Cases
Updated Question and Answers [100%
Correct] 2024/2025 Latest Version!
What constitutes a valid contract, and what essential elements must be present for its enforceability?
A valid contract requires an offer, acceptance, consideration, mutual assent, and lawful purpose.
Describe the concept of "consideration" in contract law and provide an example to illustrate its
importance. Consideration refers to something of value exchanged between parties in a contract,
such as money or services, which is essential for the agreement's validity.
Explain the legal principle of "capacity" in the context of forming contracts and the implications of
lacking capacity. Capacity refers to the legal ability of parties to enter into a contract, and
individuals lacking capacity, such as minors or mentally incapacitated persons, may void the agreement.
What is the doctrine of "promissory estoppel," and under what circumstances might it be invoked?
Promissory estoppel prevents a party from withdrawing a promise when the other party has
reasonably relied on that promise to their detriment.
Identify and discuss the differences between "fraud" and "misrepresentation" in contract law.
Fraud involves intentional deception to secure unfair gain, while misrepresentation is an unintentional
false statement that induces another party to enter into a contract.
What is the statute of frauds, and which types of contracts does it typically cover? The statute of
frauds requires certain contracts, such as those involving real estate or that cannot be performed within
one year, to be in writing to be enforceable.
Discuss the concept of "breach of contract" and the possible legal remedies available to the injured
party. A breach of contract occurs when one party fails to perform as agreed, and remedies may
include damages, specific performance, or rescission of the contract.
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,How does the concept of "unconscionability" apply to contracts, and what are its legal implications?
Unconscionability refers to a contract that is so one-sided or oppressive that it shocks the
conscience, making it unenforceable in court.
Define "agency" in legal terms and explain the principal-agent relationship. Agency is a fiduciary
relationship where one party (the agent) acts on behalf of another (the principal), creating legal
obligations between the parties.
What are the essential duties of an agent toward their principal? An agent has the duty of loyalty,
duty to act with care, duty to account, and duty to disclose relevant information to the principal.
Explain the difference between "express" and "implied" agency. Express agency is established
through clear communication, often in writing, while implied agency arises from the actions or conduct
of the parties.
What is "negligence," and what four elements must be established to prove a negligence claim?
Negligence is the failure to exercise reasonable care, requiring the establishment of duty, breach,
causation, and damages.
Describe the "reasonable person standard" in tort law. The reasonable person standard measures
behavior against that of an average person in similar circumstances to determine negligence.
What defenses might be available to a defendant in a negligence claim? Defenses include
contributory negligence, comparative negligence, and assumption of risk, which may reduce or eliminate
liability.
Discuss the concept of "strict liability" in tort law and provide an example of its application. Strict
liability holds a party responsible for damages without proof of negligence, often applied in cases
involving abnormally dangerous activities or defective products.
What are the key differences between intentional torts and unintentional torts? Intentional torts
involve deliberate actions causing harm, while unintentional torts arise from negligence without intent
to cause injury.
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, Explain the significance of "damages" in tort law and the types of damages that may be awarded.
Damages compensate a victim for losses, including compensatory damages for actual loss and punitive
damages to punish wrongdoing.
What is the role of a "partnership" in business law, and what are the essential characteristics that define
it? A partnership is a business structure where two or more individuals share ownership and
management responsibilities, characterized by shared profits, liabilities, and decision-making.
Identify the main types of business organizations and discuss their respective advantages and
disadvantages. Types include sole proprietorships, partnerships, corporations, and limited liability
companies (LLCs), each with unique benefits such as tax treatment, liability protection, and ease of
formation.
What is a "limited liability company" (LLC), and how does it differ from a corporation? An LLC
combines the benefits of partnership taxation with the liability protection of a corporation, allowing
flexibility in management without double taxation.
Explain the concept of "corporate veil" and under what circumstances it may be pierced. The
corporate veil protects owners from personal liability; it may be pierced if there is fraud, commingling of
assets, or undercapitalization.
Discuss the fiduciary duties of corporate directors and officers. Directors and officers must act in
the best interest of the corporation, exercising care, loyalty, and good faith in their decision-making.
What is insider trading, and why is it considered illegal? Insider trading involves trading stock
based on non-public information, undermining market integrity and investor trust, thus violating
securities laws.
Define "intellectual property" and list the main types, including their significance in business.
Intellectual property includes creations of the mind, such as inventions, trademarks, and copyrights,
providing legal protection and commercial advantage in competitive markets.
What role does the Federal Trade Commission (FTC) play in regulating business practices? The
FTC enforces laws against unfair or deceptive business practices and promotes competition, protecting
consumers from fraud and ensuring a fair marketplace.
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