GB317 Test #2

a court order to reduce the rent to be paid to compensate for breach of lease by landlord

repudiation of contract before performance is due

failure to properly perform the obligations agreed to in a contract

The legal standing to enter into a contract which is sometimes limited due to insanity, infancy, etc

The exchange of commitments between parties to a contract often stated as the price one is willing to pay for the promise of another

an initial payment under a contract that must be returned to the purchaser in the event of a breach

force or threat to enter into a contract

when a person leads another to believe a certain fact is true

a term of a contract where one party tries to limit or eliminate obligations that would otherwise be present

some outside, unforeseen event makes the performance of the contract impossible or fundamentally different

a breach that goes to the very foundation of the contract and that is not covered by an exemption clause

encouraging someone to break his or her contract with another

The parties should be serious and expect that legal consequences should flow from their agreement

invitations (often advertisement) to engage in the bargaining process leading to a contract

a misunderstanding about the nature or subject matter of an agreement that destroys consensus

when two parties to a contract have a different understanding as to the meaning of a specific provision

victims of a breach must make an effort to lessen the loss

Where a party is not bound by terms of a document because he didn't understand the nature of the document signed

when a new contract is creaated byy substituting a new party for one of the original parties to the original contract

a tentative promise to do something if another party fulfills what the first party requests

the party receiving an offer agrees to be bound by the terms set out in the offer

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

a subsidiary contract where some additional consideration is given to hold an offer open for later acceptance

some benefit conveyed before an agreement is made; it is not valid consideration

when each party has completed its obligations under the terms of a contract

the rule that an acceptance is effective when posted when that method of response is appropriate

contract terms apply only to tthe actual parties to the contract

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

reasonable price paid foor requested services where there is no actual contractual obligation; somestimees called a quasi-contract

where the damages could not have been reasonable foreseen by the breaching party when the agreement was made

one party indicates to the other that they will not perform their contractual obligations

withdrawal of an offer before acceptance (must be communicated to the offeree)

returning the parties to the position they were in before the contract

formal mark on a document (usually an impression or wafer), whhich eliminates the need for consideration

both parties make the same mistake, sometimes called common mistake

court orders a breaching party to live up to the terms of the agreement

the partiees have performed all but a minor aspect of the contract

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

a special relationship that induces a person to enter a contract to he disadvantage

where an offer is made in such a way thatt to accept, the offeree must actually perform the act required as consideration

not a legally binding agreement because an essential ingredient is missing; there is no contract

there is a contract but one of the parties has the option to end it

minor terms of a contract

major terms of a contract

The terms must be clear and booth parties should have a shared understanding of them

a voluntary exchange of promises or commitments that are enforceable in our courts

process of offer and acceptance

tentative promise that contains the terms of the anticipated contracct

Offer must contain: (3)

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

End of offer: (7)

no bargaining power;
ambiguities interpreted in favour of the party forced to accept the terms

commitment of offeree to be bound by terms of offer

A contract is effective...

Restrictive covenants permissible only if: (3)

______ requires certain transactions be written

Transactions that must be written (6)

Disputes may revolve around: (3)

false and misleading statements that induce a person to enter into a contract

misleading another without knowing

intentionally and knowingly misleading another to induce him/her to enter into contract

person making misrepresentation should have known what he/she was saying was false, he/she was careless

Remedy for misrepresentation

Remedy for fraudulent misrepresentation

Remedy for negligent representation

Remedy for misstatement that becomes a term of the contract

taking advantage of vulnerable person's situation

transferring a benefit under a contract to a third party

Statutory assignment allows assignee to sue directly if: (3)

Discharge of Contracts (4)

once parties have performed as required under the contract, it is discharged

contract begins only if conditions are met

terms in contract specify when continuing obligations will end

compensation to attempt to put victim in position he/she would have been in if contract properly performed

remedies for breach (3)

deposit forfeited or contract terms in contract to limit damages to be paid

Equitable remedies (4)

privity exceptions (3)

substitutes for money or instrruments of credi that bestow unique benefits; vehicles for conveniently transferring funds or advancing credit

Negotiable instruments (3)

order not to act inconsistent with contract terms

order to disclose and pay over profits to victim

Required for a contract to be legally binding (5)

Insanity or intoxication - to escape a contract for non-necessities (3)

remedy for shared mistake

remedy for misunderstanding

caveat emptor