LEGAL EXAM 2 PRACTICE TEST

7 enforceable terms

1. offer, 2. acceptance, 3. consideration, 4. legality, 5. capacity, 6. consent, 7. writing

noncompete agreement

Terms of an employment contract that prohibit an employee from working for any competitors for a specified period of time, often one to two years.

NEED 3 REASONABLE THINGS (Scope, Geography, Duration)

Bilateral Contract

A promise made in exchange for another promise

Unilateral Contract

promise in exchange for an act

Valid Contract

Satisfies all of the law's requirements

Unenforceable Agreement

A contract where the parties intend to form a valid bargain but a court declares that some rule of law prevents enforcing it

Voidable Contract

An agreement that may be terminated by one of the parties

Void Agreement

A contract that neither party can enforce, because the bargain is illegal or one of the parties had no legal authority to make it

Express Contract

A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.

Implied Contract

the words and conduct of the parties indicate that they intended an agreement

Executory Contract

A contract that has not yet been fully performed.

Executed Contract

a contract that has been fully performed by both parties

Promissory Estoppel

A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies; such a promise is binding if justice will be better served by the enforcement of the promise.

Quasi Contract

court-imposed obligation to prevent unjust enrichment in the absence of a contract

2 sources of contract law

1. Common Law (SERVICES)

2. Uniform Commercial Code (SALE OF GOODS)

UCC

The Uniform Commercial Code; the laws governing business and financial transactions

Negligence

unintentional tort because it concerns harm that arises by accident

4 elements of negligence

1. duty of care

2. breach of duty

3. causation (factual and proximate)

4. damages

Negligence Per Se

when a legislative sets a minimum standard of care for a particular activity to protect a certain group of people, and a violation of the statute injures a member of that group

Res Ipsa Loquitur

A doctrine under which negligence may be inferred simply because an event occurred, if it is the type of event that would not occur in the absence of negligence. Literally, the term means "the facts speak for themselves."

3 defenses to negligence

1. Contributory Negligence

2. Comparative Negligence

3. Assumption of risk

Contributory Negligence

a rule barring plaintiff from recovering for negligence if they contributed to causing the harm (CAN'T RECOVER)

Comparative Negligence

a rule allowing plaintiffs to recover even if they too were negligent in causing the harm (CAN RECOVER)

Assumption of Risk

people who voluntarily enter a situation that has an obvious danger cannot complain if they are injured

Strict Liability

imposes a much higher level of liability when harm results from ultrahazardous acts

3 ultrahazardous activities that are part of strict liabilty

Chemicals, explosives, wild animals

Intentional torts

Harm caused by a deliberate action

Types of intentional torts

assault, battery, false imprisonment, defamation, fraud, IIED, Libel & Written defamation, tresspass, 2 types of conversion

law of defamation

False statements that harm someone's reputation.

Libel

written defamation

Slander

spoken defamation

False Imprisonment

the intentional confinement or restraint of another person's activities without justification

Intentional Infliction of Emotional Distress (IIED)

results from extreme and outrageous conduct that causes serious emotional harm

Battery

intentional touching of another person in any way that is harmful or offensive

assault

An act that makes a person reasonably fear an imminent battery

trespass

intentionally entering land that belongs to someone else or remaining on the land after being asked to leave

Conversion

Taking or using someone's personal property without consent

fraud

injuring another person by deliberate deception

Compensatory Damages

Damages awarded in a civil lawsuit that are intended to restore the plaintiff to the same condition that he or she was in prior to the incident.

Punitive Damages

intended to punish the defendant for conduct that is extreme and outrageous

Tortious interference with a contract

an intentional tort in which the defendant improperly induced a third party to breach a contract with the plaintiff

Tortious Interference with Business Relations

allows plaintiffs to recover against a defendant who intentionally interferes with their business or contractual relationships

Tortious interference with a prospective advantage

malicious interference with a developing economic relationship

offer

a statement that proposed definite terms which the other side can review and agree or not agree too

Acceptance

the action of consenting to receive or undertake something offered

NOT OFFERS

Invitations to bargain, price quotes, letters of intent, advertisements, auctions

Gap-filler provisions

UCC rules for supplying missing terms

Output Contract

obligates the seller to sell ALL of his output to the buyer, who agrees to accept it

requirements contract

obligates a buyer to obtain all of his NEEDED goods from the seller

Termination by Revocation

An offer is revoked when the offeror "takes it back" before the offeree accepts

Termination by Rejection

If an offeree rejects an offer, the rejection immediately terminates the offer

Termination by Expiration

When an offer specifies a time limit for acceptance, that period is binding. If the offer specifies no time limit, the offeree has a reasonable period in which to accept.

Termination by Operation of Law

If an offeror dies or becomes mentally incapacitated, the offer terminates automatically and immediately. Destruction of the subject matter terminates the offer.

Counteroffer

An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.

Mirror Image Rule

a common law that requires that the terms in the acceptance must exactly match the terms contained in the offer

UCC 2-207

an offeree who accepts may include in the acceptance terms that are additional to or different from those in the offer

Clickwrap Agreement

a contract in which an offeree enters into a contract by clicking on a dialog box on an Internet web site

Browsewrap Agreement

websites seek to bind users to their terms just by posting them somewhere on their sites or making them accessible through a hyperlink

Hybridwrap

Combination of clickwrap and browsewrap.

Manner of Acceptance

If an offer demands acceptance in a particular method or manner, the offeree must follow those requirements. If the offer does not specify a type of acceptance, the offeree may accept in any reasonable manner and medium.

Mailbox Rule

Acceptance is generally effective upon DISPATCH. Terminations are effective when received.