Contract Law Quiz & Flashcards

A unilateral contract involves one party promising something in return for an act, such as offering a reward.

Prenuptial agreements must be in writing to be enforceable under the statute of frauds.

Contracts signed under duress are voidable at the option of the coerced party.

Capacity refers to the legal ability of a person to enter into a binding contract.

A condition precedent is an event that must occur before a party is obligated to perform under a contract.

The parol evidence rule limits the use of oral agreements that contradict the terms of a written contract.

Consideration is something of value exchanged between parties to form a binding contract.

Anticipatory repudiation occurs when one party indicates they will not fulfill their contractual duties before the performance is due.

Rescission is the cancellation of a contract, returning parties to their pre-contract positions.

A voidable contract can be annulled by one party, usually due to factors like duress or fraud.

Specific performance is a court order requiring a party to fulfill their contractual obligations.

Liquidated damages are a predetermined amount agreed upon to be paid in case of a breach.

Witnesses are not a requirement for a contract; offer, acceptance, and consideration are essential.

Novation requires the consent of all parties and replaces an old obligation with a new one.

An implied contract is formed by the conduct of the parties rather than written or spoken words.

Unconscionable contracts are often declared void because they are unfair to one party.

Undue influence involves unfair persuasion by someone in a position of power over the other party.

The mailbox rule states that an acceptance is effective once it is sent, not when it is received by the offeror.

A material breach significantly affects the contract's core, allowing the other party to terminate the agreement.

A gift is not consideration because it is not something of value exchanged in a contract.

Commercial impracticability can be a defense if unforeseen events make contract performance excessively burdensome.

Frustration of purpose discharges the parties from their obligations if the contract's main purpose is undermined.

Contracts entered into by minors are typically voidable at the minor's discretion.

Good faith ensures that parties act fairly and honestly in fulfilling their contractual obligations.

A letter of intent is a non-binding preliminary agreement outlining the understanding between parties.

Promissory estoppel prevents a party from going back on a promise that the other party has relied upon to their detriment.

Assignment involves transferring contractual rights from one party to another.

An executory contract is one that has yet to be fully performed by one or more parties.

A quasi-contract is a legal construct to prevent one party from being unjustly enriched at the expense of another.

A void contract is one that is illegal and has no legal effect from the beginning.

A mutual mistake regarding a fundamental fact can make a contract voidable by the adversely affected party.

Restitution involves returning any benefits conferred to the party who has suffered a loss due to the contract.

The sale of land must be in writing to be enforceable under the statute of frauds.

Equitable estoppel prevents a party from denying previous assertions that another party has relied upon.

An offer can be accepted to form a contract, while an invitation to treat is merely an invitation to negotiate.

Contracts with minors are typically voidable at the minor's discretion.

When a contract is breached, the non-breaching party is entitled to legal remedies such as damages.

Duress makes a contract voidable at the option of the party who was coerced.

A contract of adhesion is a standard-form contract offered by one party with stronger bargaining power and little room for negotiation.

Compensatory damages aim to compensate the plaintiff for losses incurred due to the breach.

A service agreement is a bilateral contract where each party makes promises to the other.

Capacity refers to the legal ability of a person to enter into a binding contract.

Impossibility of performance refers to situations where unforeseen events make fulfilling the contract impossible.

A unilateral mistake may make a contract voidable if it is significant enough to affect the agreement.

Conformity breach is not a recognized form of breach of contract.

An illegal contract is void and unenforceable because it goes against the law.

If a party breaches a contract, the non-breaching party may seek damages or other legal remedies.

Rescission cancels a contract and returns the parties to their pre-contractual positions.