Contracts Review Chapters 7-12
#1T or F All serious agreements are contracts False Prom could be serious to you!!!
# 2 What is a gift? The transfer of ownership without receiving anything in return Think presents!
# 3 List the three groups who can lack contractual capacity Minors, the intoxicated and the mentally impaired.
#4 Charging more than the maximum allowed interest on a loan is called Usury
#5 Describe the difference between a necessaries and non-necessaries One is something necessary for survival or work the other is just nice to have.
#6 If an offer is altered by the offeree, what has occurred? A Counter offer
#7 What is the key element in unfair persuasion? The relationship
#8 T or F For misrepresentation to occur the statement must be one of fact. True
#9 What can you do to keep an offer open to you and only you? Create an option contract where you give something of value to keep the offer open.
#10 Advertisements in the newspaper, on the radio or television are considered to be . . . Invitations NOT offers
#11 Define Revocation: The right to withdraw the offer before it is accepted.
#12 What is the difference between a unilateral and a bilateral contract? Unilateral offeree must perform the act to show acceptance Bilateral offeree accepts by communicating promise
#13 What is the Mirror Image rule? The terms of the acceptance must exactly match the terms in the offer
#14 List all of the reasons why genuine agreement may be lacking: Fraud, misrepresentation, undue influence, duress, or mistake
#15 In order for a statement to be material it must. . . An important FACT that influences a parties decision about a contract.
#16 What can serve as consideration? An act, a promise or a forbearance
#17 What are the elements of misrepresentation? 1. Untrue statement is one of fact. 2. The statement is Material 3. the victim reasonably relied on the statement
#18 What are the three remedies for Fraud? Rescission Damages Punitive Damages
#19 Define Legal Value Must be worth something in the eyes of the law Not Love or Friendship!
#20 If a contract contains a clause that allows one party to get out of it at any time for any reason it said to be? illusory
#21 An output contract is . . . When the buyer agrees to purchase all of a particular producer’s production
#22 What are the three requirements of Consideration? Each party must give an act, forbearance or promise Must actually trade Must have legal value
#23 When consideration is NOT necessary for there to be a valid contract it is said to be Promissory Estoppel
#24 List all of the types of agreements that restrain free trade that we discussed in class. Price fixing Allocation of Markets Covenants not to compete
#25 Acting as if you intend to be bound by a contract is . . . Ratification
#26 Severing the child parent bond is . . . Emancipating
#27 What is one legalized form of gambling? NYS lottery Pari-mutuel betting
#28 Please give three examples of people who need a competency license. Teachers, doctors, accountants
#29 The sale of goods is controlled by . . . The UCC
#30 A contract is said to be within the statute of frauds if what? It must be in writing
#31 What contracts fall with in the statute or frauds? (5) Buy and sell goods of more than $500 Real property Promise to pay the debt of another Take more than a year to complete Give something for a promise of marriage
#32 What is generally considered to be all essential terms in a written contract? Names of Parties Subject matter description Price Quantity Other essential terms Signature
#33 A valid offer is created by doing these three things: Must intend to create a legal offer Terms must be definite and complete Must be communicated to offeree
#34 The absence of genuine agreement makes the contract: Voidable
#35 What are the three main categories of things that cannot serve as consideration? Existing Duties Mutual gifts Past performance
#36 Capacity in organizations is defined by: The employee's scope of authority
#37 What grade will you get on this test? It all depends on how much work you put in!