Business Law Exam 2

Assent of buyer to become owner of goods; assent to an offer resulting in a contract; drawee's signed agreement to pay draft.

Person making an assignment

Person to whom contract right is assigned

Failure or refusal to perform contractual obligations

Amount equal to the loss sustained

Sum fixed by contract for breach where actual damages are difficult to measure

Amount paid to one party to punish the other

Small amount awarded when there is technical breach but no injury

When all of multiple creditors settle in full for a fraction of the amount

What promisor requires as the price for a promise

Legally enforceable agreement

If the person is so intoxicated that they cannot understand the meaning of their acts are voidable. The rule regarding the capacity of an intocicated person also applies to people using drugs.

Offeree's response that rejects offer by varying its items

Person to whom promisee owes obligation, which is discharged if promisor performs

Third-Party beneficiary for whom performance is a gift

Person who unintentionally benefits from the performance of a contract

Sum of money a wrongdoer must pay to an injured party

Obligation to pay money

Breach of contractual obligation

Transfer of duties

Repudiation of a voidable contract

Person who recieves a gift

Person who receives guaranty

Obtaining consent by means of threat

Fully performed contract

Contract not fully carried out

Contract the terms of which are specified in words

Refraining from doing something

Inducing another to contract as a result of an intentionally or recklessly false statement of a material fact

Agreement obligating or entitling two or more people together to performance

Agreement by which two or more people are bound jointly and individually

Two or more people individually agree to perform obligation

Interest rate applied when no rate specified

Highest legal rate of interest

False statement of a material fact

Mistake made by both parties to a contract

Items required for living at a reasonable standard

Termination of a contract and substitution of a new one with same terms but new party

A proposal to make a contract

Person who makes an offer

Person to whom offer is made

Oral testimony

• Substitute for consideration when another acts in reliance on promisor's promise
• The elements of promissory estoppel include:
• 1. A promise is made
• 2. The promisor reasonably expectsthe promise to induce action by the promisee
• 3. The promisee does act
• 4. Justice requires enforcement of the promise

Imposition of rights and obligations by law without a contract

Approval of unauthorized act; adult indicating contract made while a minor is binding

Obligation entered into before a court to do an act required by law

Judicial correction of a contract

• 1. The offer must be definite
• 2. It must appear to be seriously intended
• 3. Itr must be communicated to the offeree

Set aside or cancel

Carrying out the terms of contract

Law requiring certain contracts to be in writing

Time within which right to sue must be exercised or lost

Offer to perform in satisfaction of terms of contract

Person in special relationship causing another's action contrary to free will

Mistake by one party to a contract

One benefiting unfairly at another's expense

Charging higher rate of interest than law allows

Enforceable agreement that may be set aside by one party

The promise of each person is generally held to be enforceable