GB317 Test #2

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Author:
slittle4
ID:
113017
Filename:
GB317 Test #2
Updated:
2011-10-30 23:17:05
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business law
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Chapters 3 & 4
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  1. a court order to reduce the rent to be paid to compensate for breach of lease by landlord
    abatement
  2. repudiation of contract before performance is due
    anticipatory breach
  3. failure to properly perform the obligations agreed to in a contract
    breach of contract
  4. The legal standing to enter into a contract which is sometimes limited due to insanity, infancy, etc
    capacity
  5. The exchange of commitments between parties to a contract often stated as the price one is willing to pay for the promise of another
    consideration
  6. an initial payment under a contract that must be returned to the purchaser in the event of a breach
    down payment
  7. force or threat to enter into a contract
    duress
  8. when a person leads another to believe a certain fact is true
    estoppel
  9. a term of a contract where one party tries to limit or eliminate obligations that would otherwise be present
    exemption clause
  10. some outside, unforeseen event makes the performance of the contract impossible or fundamentally different
    frustration
  11. a breach that goes to the very foundation of the contract and that is not covered by an exemption clause
    fundamental breach
  12. encouraging someone to break his or her contract with another
    inducing breach of contract
  13. The parties should be serious and expect that legal consequences should flow from their agreement
    intention
  14. invitations (often advertisement) to engage in the bargaining process leading to a contract
    invitation to treat
  15. a misunderstanding about the nature or subject matter of an agreement that destroys consensus
    misunderstanding
  16. when two parties to a contract have a different understanding as to the meaning of a specific provision
    mistake
  17. victims of a breach must make an effort to lessen the loss
    mitigation
  18. Where a party is not bound by terms of a document because he didn't understand the nature of the document signed
    nom est factum - "It's not my act"
  19. when a new contract is creaated byy substituting a new party for one of the original parties to the original contract
    novation
  20. a tentative promise to do something if another party fulfills what the first party requests
    offer
  21. the party receiving an offer agrees to be bound by the terms set out in the offer
    offer and acceptance
  22. where only one of the parties makes a mistake with respect to the nature or effect of a contract; without misrepresentation, the contract will normally continuee to be binding
    one-sided mistake
  23. a subsidiary contract where some additional consideration is given to hold an offer open for later acceptance
    option agreement
  24. some benefit conveyed before an agreement is made; it is not valid consideration
    past consideration
  25. when each party has completed its obligations under the terms of a contract
    performance of the obligations
  26. the rule that an acceptance is effective when posted when that method of response is appropriate
    post-box-rule
  27. contract terms apply only to tthe actual parties to the contract
    privity of contract
  28. when a gratuitous promise to do something in the future causes a person to incur an expense, the promissor may be prevented from acting in a way inconsistent with that promise
    promissory estoppel
  29. reasonable price paid foor requested services where there is no actual contractual obligation; somestimees called a quasi-contract
    quantum meruit (as much as is deserved)
  30. where the damages could not have been reasonable foreseen by the breaching party when the agreement was made
    remote
  31. one party indicates to the other that they will not perform their contractual obligations
    repudiation
  32. withdrawal of an offer before acceptance (must be communicated to the offeree)
    revocation
  33. returning the parties to the position they were in before the contract
    rescission
  34. formal mark on a document (usually an impression or wafer), whhich eliminates the need for consideration
    seal
  35. both parties make the same mistake, sometimes called common mistake
    shared mistake
  36. court orders a breaching party to live up to the terms of the agreement
    specific performance
  37. the partiees have performed all but a minor aspect of the contract
    substantial performance
  38. one of the parties attempts to perform their contractual obligations, and where they are prevented by the other party, they are considered to have properly performed
    tender of performance
  39. a special relationship that induces a person to enter a contract to he disadvantage
    undue influence
  40. where an offer is made in such a way thatt to accept, the offeree must actually perform the act required as consideration
    unilateral contract
  41. not a legally binding agreement because an essential ingredient is missing; there is no contract
    void
  42. there is a contract but one of the parties has the option to end it
    voidable
  43. minor terms of a contract
    warranties
  44. major terms of a contract
    conditions
  45. The terms must be clear and booth parties should have a shared understanding of them
    consensus
  46. a voluntary exchange of promises or commitments that are enforceable in our courts
    contract
  47. process of offer and acceptance
    consensus
  48. tentative promise that contains the terms of the anticipated contracct
    offer
  49. Offer must contain: (3)
    • parties
    • property
    • price
  50. must be communicated at the time of entering the contract, not later
    may be on receipt, sign, or any way that is brought to the attention of the other party
    exemption clauses
  51. End of offer: (7)
    • end of specific time
    • end of reasonable time
    • death or insanity of offeror
    • revocation (if communicated)
    • rejection
    • counter-offer
    • option agreement
  52. no bargaining power;
    ambiguities interpreted in favour of the party forced to accept the terms
    standard form contracts
  53. commitment of offeree to be bound by terms of offer
    acceptance
  54. A contract is effective...
    when and where communicated
  55. Restrictive covenants permissible only if: (3)
    • reasonable limit in time
    • reasonable limit in area
    • public interest is not harmed
  56. ______ requires certain transactions be written
    Statute of Frauds
  57. Transactions that must be written (6)
    • purchase of land
    • long-term leases
    • assuming responsibility for debt
    • contracts over one year
    • marriage contracts
    • sales of goods of certain value
  58. Disputes may revolve around: (3)
    • the existence of the contract
    • the conduct of the parties at time of agreement
    • performance of obligations under contract
  59. false and misleading statements that induce a person to enter into a contract
    misrepresentation
  60. misleading another without knowing
    innocent misrepresentation
  61. intentionally and knowingly misleading another to induce him/her to enter into contract
    fraudulent misrepresentation
  62. person making misrepresentation should have known what he/she was saying was false, he/she was careless
    negligent misrepresentation
  63. Remedy for misrepresentation
    rescission
  64. Remedy for fraudulent misrepresentation
    rescission and/or damages
  65. Remedy for negligent representation
    rescission and/or damages
  66. Remedy for misstatement that becomes a term of the contract
    rescission, damages, and other breach of contract remedies
  67. taking advantage of vulnerable person's situation
    unconscionability
  68. transferring a benefit under a contract to a third party
    assignment
  69. Statutory assignment allows assignee to sue directly if: (3)
    • assignment is absolute (complete and unconditional)
    • assignment is in writing
    • proper notice was given to debtor
  70. Discharge of Contracts (4)
    • performance
    • breach
    • frustration
    • agreement
  71. once parties have performed as required under the contract, it is discharged
    performance
  72. contract begins only if conditions are met
    condition precedent
  73. terms in contract specify when continuing obligations will end
    condition subsequent
  74. compensation to attempt to put victim in position he/she would have been in if contract properly performed
    damages
  75. remedies for breach (3)
    • rescission
    • damages
    • equitable remedies
  76. deposit forfeited or contract terms in contract to limit damages to be paid
    liquidated damages
  77. Equitable remedies (4)
    • specific performance
    • injuction
    • accounting
    • quantum meruit
  78. privity exceptions (3)
    • interests in land
    • trusts
    • life insurance
  79. substitutes for money or instrruments of credi that bestow unique benefits; vehicles for conveniently transferring funds or advancing credit
    negotiable instruments
  80. Negotiable instruments (3)
    • promissory notes
    • cheques
    • bills of exchange or drafts
  81. order not to act inconsistent with contract terms
    injunction
  82. order to disclose and pay over profits to victim
    accounting
  83. Required for a contract to be legally binding (5)
    • consensus
    • consideration
    • capacity
    • legality
    • intention
  84. Insanity or intoxication - to escape a contract for non-necessities (3)
    • must show you were so insane/intoxicated that you did not understand transaction and
    • other party to contract knew or should have known of the insanity/intoxication and
    • you must repudiate contract as soon as possible when sanity/sobriety is regained
  85. remedy for shared mistake
    contract void for lack of consensus
  86. remedy for misunderstanding
    • courts will imply most reasonable interpretation and enforce
    • if both interpretations equally reasonable, contract void for lack of consensus
  87. caveat emptor
    let the buyer beware

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