Business Law FINAL EXAM Study Guide 2024/2025 | Fall & Spring Semesters

Business Law FINAL EXAM Study Guide 2024/2025 | Fall & Spring Semesters What are the essential elements of a valid contract? Offer, acceptance, consideration, legality, and capacity. stare decisis Doctrine that requires lower courts to adhere to existing case law in making decisions When does the "mirror image rule" apply in contract law? It applies when the terms of the acceptance must exactly match the terms of the offer for a valid contract to be formed. What is the legal significance of consideration in a contract? It refers to something of value exchanged between parties to form a binding agreement. Under the doctrine of promissory estoppel, when can a promise be enforced without consideration? When the promisor makes a promise that the promisee relies on to their detriment. What is an "invitation to treat"? 2 It is an indication that a party is willing to negotiate terms, but it is not an offer capable of acceptance. What is the difference between a condition and a warranty in contract law? A condition is a major term of the contract, while a warranty is a minor term. When does a contract become voidable? When one party has the option to rescind the contract due to fraud, misrepresentation, duress, or undue influence. What is the legal principle of "quantum meruit"? It allows a party to recover the value of work done or services rendered in the absence of a formal contract. How can a contractual offer be terminated? By revocation, rejection, lapse of time, or failure of a condition. What is the difference between express and implied terms in a contract? Express terms are explicitly stated, while implied terms are not stated but are assumed to exist based on the nature of the agreement. What does the "parol evidence rule" dictate? 3 It prevents the use of extrinsic evidence to vary or contradict the terms of a written contract. How does promissory estoppel differ from estoppel by representation? Promissory estoppel relates to reliance on a promise, while estoppel by representation involves reliance on a factual representation. What is the purpose of an exclusion clause in a contract? To limit or exclude liability for certain types of loss or damage. When can a contract be unenforceable due to illegality? When the subject matter of the contract involves unlawful activities. What is anticipatory breach in contract law? When one party indicates in advance that they will not perform their contractual obligations. What is the function of a force majeure clause? It excuses a party from performing obligations due to extraordinary events beyond their control. When does undue influence make a contract voidable? When one party exerts unfair pressure on the other to enter into the contract. 4 What is a liquidated damages clause? It specifies a predetermined amount of compensation in case of a breach. When is a contract considered frustrated? When unforeseen events make the performance of the contract impossible or radically different. What does the doctrine of estoppel prevent? It prevents a party from going back on a promise that another party has relied upon to their detriment. What is the significance of the "postal rule" in contract law? It states that acceptance of an offer is effective once the letter of acceptance is posted, not when it is received. What is the difference between a unilateral and bilateral contract? In a unilateral contract, one party makes a promise in exchange for an act, while in a bilateral contract, both parties exchange promises. When is a "non-compete clause" enforceable in a contract? When it is reasonable in terms of duration, geography, and the interests it seeks to protect. What is an "entire agreement clause