BLAW Unit 4 MindTap Quizzes

A _________ is a contract by which an obligee promises to accept a stated performance in satisfaction of the obligor’s existing contractual duty

accord

Which type of condition is more common

conditions precedent are common in contracts

a ________ is a substituted contract that involves an agreement among three parties to substitute a new promise for the existing promise or to replace the existing promisor with a new one

novation

even though all creditors have not been paid in full, a discharge under the ____ eliminates ordinary contract claims against the debtor

bankruptcy law

_______ is a performance, though incomplete, does not defeat the purpose of the contract

substantial performance

A _______ is an event that terminates an existing duty

condition subsequent

In most contracts, discharge takes place by

performance

_______ is an offer by one party-who is ready, willing, and able to perform- to the other party to perform his obligation according to the terms of the contract

tender

the fact that no time is specified in the contract means that

a reasonable time for performance will be implied

which of the following will be seen as commercial impracticability

performance is rendered unjust by a supervening event not caused by her own fault

Where, after a contract is made. a party’s principal purpose is substantially frustrated without his fault by the occurrence of an event whose nonoccurrence was a basis assumption on which the contract was made, his remaining duties can be discharged by

frustration of purpose

by operation of law one might be able to discharge their contractual obligations by

bankruptcy

courts of equity will not grant specific performance of contracts

for a personal services contract

compensatory damages are designed to place the injured party in a position as good as the one he would have been in had the other party performed, and are known as

consequential damages

a court of equity, at its discretion, may grant a _______ to command the other party to refrain from doing a specific act

injunction

a small sum of damages fixed without regard to the amount loss in known as

nominal damages

at time, a written contract does not correctly state the agreement already made by the parties. When this occurs, either party may seek to have the court correct the writing to state the agreement actually made. The rewriting is known as

reformation

The breaching party in not liable for loss that was not ______at the time of entering into the contract

foreseeable

the parties may stipulate in their contract that a certain amount of ______ should be paid in case of a breach

liquidated damages

________ damages are ordered in excess of actual loss and are imposed for the purpose of punishing the defendant

punitive

an injured party who rescinds a contract after having performed services may recover the reasonable value of the performance rendered as

restitution

when the damages sustained by the plaintiff can be measured in monetary terms, specific performance will be

refused

when a judge enters a very small order for damages, when the plaintiff has not sustained or cannot prove any injury or loss for a breach of contract action, she entered an order for

nominal damages

the amount that could reasonably have been avoided is deducted from the amount that would otherwise be recoverable as damages. This is known as the doctrine of

mitigation of damages

A “sale” of goods happens when

title to the goods is passed

which of the following transactions is governed by Article 2 of the UCC

the sale of oranges to be picked from a 10-acre grove

the CISG applies to

the international sale of goods

the code defines ________ as “honesty in fact in the conduct or transaction concerned”

good faith

a merchant is defined as a person who

a dealer of goods, expert, or employs an agent or broker who has knowledge/expert

the definition of usage of trade

a practice regularly observed and followed in a place, vocation, or trade

which of the following is true regarding unconscionability under the code

the code denies or limits enforcement of an unconscionable contract for the sale of goods

an “option” is defined as a contract by which

the offeror is bound to hold open an offer for a specified amount of time

which of the following is true about auctions

1. the sale is with reserve (unless otherwise stated)

2. a bidder may retract his bid at any time prior to acceptance by the auctioneer

3. bidder of goods could avoid sale if they did not get notice the auctioneer received a bid on behalf of the seller.

a contract that does not satisfy the writing requirement of the Article 2 statute of frauds, but which is otherwise valid, is enforceable in which of the following situations

1. goods have been delivered and accepted

2. payment has been accepted

3. goods have been specially manufactured and are not suitable for resale