Ch 8/9 - Contracts II Flashcards Preview

MOS 2275: Biz Law > Ch 8/9 - Contracts II > Flashcards

Flashcards in Ch 8/9 - Contracts II Deck (31)
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1
Q

voidable contract

A

a contract that, in certain circumstances, an aggrieved party can choose to keep in force or bring to an end

2
Q

void contract

A

a contract involving a defect so substantial that it is of no force or effect

3
Q

legal capacity

A

ability to make binding contracts

4
Q

age of majority

A

the age of which a person becomes an adult for legal purposes

5
Q

undue influence

A

unfair manipulation that compromises someone’s free will

6
Q

unconscionable contract

A

an unfair contract formed when one party takes advantage of the weakness of another

7
Q

misrepresentation

A

false statement of fact that causes someone to enter a contract

8
Q

rescission

A

remedy that results in the parties being returned to their pre-contractual positions

9
Q

mistake

A

an error made by one or both parties that seriously undermines a contract

10
Q

common mistake

A

both parties tot he agreement share the same fundamental mistake

11
Q

illegal contract

A

contract that cannot be enforced because it is contrary to legislation or public policy

12
Q

public policy

A

community’s common sense and common conscience

13
Q

non-solicitation clause

A

a clause forbidding contract with the business’ customers

14
Q

non-competition clause

A

a clause forbidding competition for a certain period of time

15
Q

guarantee

A

promise to pay the debt of someone else, should that person default on the obligation

16
Q

vicarious performance

A

performance of contractual obligations through others

17
Q

novation

A

the substitution of parties in a contract or the replacement of one contract with another

18
Q

assignment

A

the transfer of a right by an assignor to an assignee

19
Q

frustration

A

termination of a contract by an unexpected event or change that makes performance functionally impossible or illegal

20
Q

balance of probabilities

A

proof that there is a better than 50% chance that the circumstances of the contract are as the plaintiff contends

21
Q

condition

A

an important term that, if breached, gives the innocent party the right to terminate the contract and claim damages

22
Q

warranty

A

a minor term that, if breached, gives the innocent party the right to claim damages only

23
Q

innominate term

A

term that cannot easily be classified as either a condition or a warranty

24
Q

fundamental breach

A

breach of contract that affects the foundation of the contract

25
Q

anticipatory breach

A

a breach that occurs before the date for performance

26
Q

damages

A

monetary compensation for breach of contract or other actionable wrong

27
Q

expectation damages

A

damages which provide the plaintiff with the monetary equivalent of contractual performance

28
Q

punitive damages

A

an award tot he plaintiff to punish the defendant for malicious, oppressive, and high-handed conduct

29
Q

duty to mitigate

A

the obligation to take reasonable steps to minimize the losses resulting from a breach of contract or other wrongs

30
Q

unjust enrichment

A

occurs when one party has undeservedly or unjustly secured a benefit at the other party’s expense

31
Q

restitutionary quantum meruit

A

an amount that is reasonable given the benefit the plaintiff has conferred