BLAW MindTap Ch. 13, 14, 15, 16

A _______ is an essential element for a promise or agreement to be binding. An agreement without this is unenforceable and contrary to public policy.

legal objective

________ is when money is loaned at a higher rate of interest than the law allows

usury

a _______ is a measure designed to raise money by requiring the purchase of a license

revenue license

a noncompete agreement may be held invalid, the courts insist that the employer demonstrate that the restriction is _______ to protect the employer’s legitimate interest without overly restricting the employee’s ability to find another job

reasonable and necessary

________ means contrary to the dictates of the conscience: unscrupulous or unprincipled; exceeding that which is reasonable or customary; inordinate, unjustifiable

unconscionable

Is a statute requiring that doctors b licensed after finishing medical school considered to be a regulatory licensing law

yes

a buyer of a business may negotiate a ________ contract clause to keep the seller from running a competing business

covenant not to compete

the sole hospital in a city offers a standard patient care agreement. The contract is prepared on a standard form and offers terms on a take-it-or-leave-it basis. Such a contract is called:

an adhesion contract

________ is a set of oppressive or grossly unfair contract terms or exclusions

substantive unconscionability

in a _________, the parties stipulate that one shall win and the other lose depending on the outcome of an event in which their only interest is the possibility of such gain or loss

wager

a given agreement many not violate any statute but may still be so offensive to society that courts feel that enforcing the contract would be:

contrary to public policy

While still a minor, can they disaffirm the contract and return the property

yes

at any time before he turns 21, can they disaffirm the contract and return the property

no

within 72 hours of the contract a minor can disaffirm the contract

no

what is the capacity of a person adjudicated incompetent by a court order

1. merchant might be able to recover the fair value of any necessaries

2. the person’s own contracts are void

3. the guardian may be able to ratify contracts made by the ward

What is the effect of slight intoxication on the capacity of a person to enter into a contract

slight intoxication will not destroy one’s contractual capacity

a minor may avoid or ________ a contract by an expression of an intention to repudiate the contract

disaffirm

which of the following is most likely to be classified as a necessary for which a minor will be held liable on a contract

food

every adult is presumed to have capacity unless

it is proven that capacity is lacking or there is status incapacity

courts allow a minor a certain amount of time to disaffirm a contract when he turns 18 years of age. That time period is:

a reasonable period of time after reaching the age of majority

a minor can avoid a contract to purchase a car if:

1. car had been destroyed

2. car was damaged

3. he grows tired of it

once ________ a minor cannot avoid a contract

ratified

when a minor’s guardian furnishes her with an adequate wardrobe would anew hoodie be a necessary

no, necessaries are items not provided by the guardian

the type of substance ingestion that could lead a court to find one lacking in capacity is

because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences

for the issue of capacity, a court will examine whether a party to the contract lacked contractual capacity when:

the time the contract was made

which of the following promises does have to be evidenced by a writing in order to be enforceable

jack’s agreement with steve to sell his his condominium for $150,000

which of the following is not collateral promise

a father tells Best Computer to deliver a laptop to his son and says, “Send me the bill. I’ll pay for it”

when the ________ of the promisor’s promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable

main purpose

when the parties express their contract in a writing that is intended to be the complete and final expression of their rights and duties, the _______ excluded prior oral or written negotiations or agreements of the parties

parol evidence rule

the customs and _________ or commercial activity to which the contract relates may be used to interpret the terms of a contract

usage of trade

general contract provisions of a writing must

1. specify the parties of a contract

2. specify the subject matter and essential terms

3. be signed by the party to be charged or his agent

in determining the meaning of an ambiguous contract the court will

interpret the contract strictly against the person who drafted it

parol evidence is admissible to show

1. fraud

2. duress

3. mistake

contracts for the sale of goods priced a(starting) at _______ or more must ordinarily be in writing under the UCC

$500

Example of an enforceable oral contract

an oral agreement to substitute the place of closing a land contract

which of the following would meet the signature requirement for a writing to satisfy the statute of frauds

1. initials of both parties

2. an electronic signature

3. a printed name

which of the following is true regarding noncompliance with the statute of frauds

the basic legal effect under the statute of frauds and the UCC is the same

the transfer of a contract right to a third party is known as

assignment

a ______ is a substitution for an old contract with a new one that either replaces an existing obligation with a new obligation with a new obligation or replaces an original party with a new party

novation

when a contract is intended to benefit a third person, such a person is a

intended beneficiary

a _______ is an intended beneficiary of a contract who receives the benefits of the contract as a gift

donee beneficiary

which of the following is true about the vesting of an incidental beneficiary’s rights

an incidental beneficiary was not meant to benefit from the contract, thus he acquired no rights

a _______ stands exactly in the position of the _______

assignee; assignor

not all classes of beneficiaries receive rights in the underlying contract. Which one does not

incidental beneficiaries

a clear and specific contractual prohibition against the assignment of rights _____ enforceable at common law

is

a party owing a debt under a contract is the

obligor

which fot he following is/are true concerning the requirements for the form of an assignment

1, an assignment may be in any form

2. statutes may require certain requirements be in writing or executed in a particular form

3. any words that show an intention to transfer or assign will be respected

sometimes the promisee’s primary intent is to discharge a duty to a third party. Which of the following describes that type of contract

a contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy