Exam 10: Contracts

Fernando owes Lucia $8,000. They both realize he is unlikely to be able to repay that much, so Lucia says: "Pay me $5,000 and we'll call it good." Fernando pays the $5,000. This settlement is called:

You are hired to mow a lawn on Saturday. Being busy, you hire your brother to do the job for you and get paid for it. This is:

Nominal damages can be important because:

Bart was supposed to deliver 100,000 firecrackers to Lisa by June 1, but his factory explodes in April so he suspends operations. The contract:

A doctrine to avoid injustice that is used by the courts to bind a promisor to promises that a reasonable person would rely upon without consideration, is called:

____ means that the contract basically has been fulfilled and payments must be made.

Contract law is primarily state common law.

Punitive damages in breach of contract cases are based on a tort, not the breach itself.

Contracts created by those with partial capacity are:

You leave your poodle at a new grooming shop and tell them to wash the dog⎯a $30 service. They do that and also paint the poodle's nails and tie ribbons in his hair⎯these services are an extra $10. You pay them for the wash. What about the extra $10 in services?

Punitive damages are also known as expectancy damages.

A(n) ____ is a binding promise to keep an offer open for a specified period of time.

An authoritative document that provides an orderly summary and presentation of the common law of contract is:

Without ____ a contract may be void.

An intoxicated person often has partial capacity to contract.

A acceptance is properly communicated at the point:

A ____ is an order by the court that requires a party to perform or to refrain from performing certain acts.

If no time is specified in an offer, the law presumes the offer exists for one year before it is terminated by lapse of time.

The remedy of ____ may be used to prevent unjust enrichment.

The freedom of contract is: