Business Law Final

Illusionary promises are enforceable?

A) False
B) True

Industrial Engineering, Inc., promises to give stock options to Jasmine for processes she has already designed for the firm. This promise is enforceable

A) because it is a new contract.
B) because it is an illusory promise.
C) under no circumstances.
D) because it is supported by past consideration.

Can past consideration be considered sufficient consideration to support a contract.
True False

If a minor enters into a contract for a necessary, can they disaffirm the contract?

A unilateral mistake is a mistake by _____, making the contract ______.

A bilateral mistake is mistake by ________ and the contract _______.

Unlawful pressure brought to bear on a person, causing the person to perform an act that he or she would not otherwise perform.

Under what circumstances can a party be discharged from a contract?

If an employment contract is breached employee is granted _______.

Special damages that compensate for a loss that is not direct or immediate (ex loss profits). The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them.

A provision in a contract that stipulates an amount, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a breach. Meant to make innocent party whole.

A clause that specifies a certain amount to be paid in the event of a breach or default of contract, it is designed to penalize the breaching party, not to make the innocent party whole. Agreement to the amount may not be enforced by court.