LEGL 2700 FINAL EXAM QUESTIONS
AND ANSWERS | LATEST VERSION |
2024/2025 | GRADED A+
What is the parol evidence rule in contract law?
✔✔ The parol evidence rule prohibits the introduction of oral or written statements made before
or during the formation of a written contract that contradict or alter the written terms.
What does performance standard mean in contract performance?
✔✔ The performance standard sets the level of quality or manner in which contractual
obligations must be fulfilled to meet the terms of the contract.
What is waiver of rights in legal terms?
✔✔ A waiver of rights involves voluntarily giving up a legal right or claim, often in a
contractual context.
What is promissory estoppel?
✔✔ Promissory estoppel prevents a party from denying a promise if another party has
reasonably relied on that promise to their detriment.
1
,What does rescission mean in contract law?
✔✔ Rescission is the cancellation of a contract, with the goal of returning all parties to their pre-
contractual positions.
What is liquidated damages?
✔✔ Liquidated damages are predetermined amounts of money specified in a contract to be paid
in the event of a breach.
What is unilateral mistake in contract formation?
✔✔ A unilateral mistake occurs when only one party is mistaken about a material fact in a
contract, which may or may not affect the contract's enforceability.
What does consideration in a contract mean?
✔✔ Consideration in a contract refers to something of value that is exchanged between parties as
part of the agreement, making the contract binding.
What is the doctrine of unconscionability?
2
,✔✔ The doctrine of unconscionability allows a court to refuse to enforce a contract that is
deemed excessively unfair or unjust to one party.
What is constructive discharge?
✔✔ Constructive discharge occurs when an employee resigns due to intolerable working
conditions created by the employer, which is treated as a termination.
What is breach of fiduciary duty?
✔✔ Breach of fiduciary duty happens when someone in a position of trust fails to act in the best
interests of the party they owe a duty to.
What is quantum meruit?
✔✔ Quantum meruit is a legal principle allowing a party to recover the value of services
rendered when no formal contract exists or when a contract is unenforceable.
What is economic duress?
✔✔ Economic duress involves forcing someone into a contract by threatening financial harm or
economic loss.
3
, What is disgorgement of profits?
✔✔ Disgorgement of profits is a legal remedy requiring a party to return profits obtained
through wrongful or illegal conduct.
What is actual authority in agency law?
✔✔ Actual authority is the power an agent has to act on behalf of a principal, as explicitly
granted by the principal through verbal or written agreement.
What is estoppel by deed?
✔✔ Estoppel by deed prevents a party from denying the truth of statements made in a deed
regarding the status of property or title.
What is illusory promise in contract law?
✔✔ An illusory promise is a statement that appears to be a commitment but lacks the substance
to create a binding contract because it does not impose any actual obligation.
What does nominal damages refer to?
✔✔ Nominal damages are a small amount of money awarded to a plaintiff when a legal wrong
has occurred, but no significant harm or loss was suffered.
4
AND ANSWERS | LATEST VERSION |
2024/2025 | GRADED A+
What is the parol evidence rule in contract law?
✔✔ The parol evidence rule prohibits the introduction of oral or written statements made before
or during the formation of a written contract that contradict or alter the written terms.
What does performance standard mean in contract performance?
✔✔ The performance standard sets the level of quality or manner in which contractual
obligations must be fulfilled to meet the terms of the contract.
What is waiver of rights in legal terms?
✔✔ A waiver of rights involves voluntarily giving up a legal right or claim, often in a
contractual context.
What is promissory estoppel?
✔✔ Promissory estoppel prevents a party from denying a promise if another party has
reasonably relied on that promise to their detriment.
1
,What does rescission mean in contract law?
✔✔ Rescission is the cancellation of a contract, with the goal of returning all parties to their pre-
contractual positions.
What is liquidated damages?
✔✔ Liquidated damages are predetermined amounts of money specified in a contract to be paid
in the event of a breach.
What is unilateral mistake in contract formation?
✔✔ A unilateral mistake occurs when only one party is mistaken about a material fact in a
contract, which may or may not affect the contract's enforceability.
What does consideration in a contract mean?
✔✔ Consideration in a contract refers to something of value that is exchanged between parties as
part of the agreement, making the contract binding.
What is the doctrine of unconscionability?
2
,✔✔ The doctrine of unconscionability allows a court to refuse to enforce a contract that is
deemed excessively unfair or unjust to one party.
What is constructive discharge?
✔✔ Constructive discharge occurs when an employee resigns due to intolerable working
conditions created by the employer, which is treated as a termination.
What is breach of fiduciary duty?
✔✔ Breach of fiduciary duty happens when someone in a position of trust fails to act in the best
interests of the party they owe a duty to.
What is quantum meruit?
✔✔ Quantum meruit is a legal principle allowing a party to recover the value of services
rendered when no formal contract exists or when a contract is unenforceable.
What is economic duress?
✔✔ Economic duress involves forcing someone into a contract by threatening financial harm or
economic loss.
3
, What is disgorgement of profits?
✔✔ Disgorgement of profits is a legal remedy requiring a party to return profits obtained
through wrongful or illegal conduct.
What is actual authority in agency law?
✔✔ Actual authority is the power an agent has to act on behalf of a principal, as explicitly
granted by the principal through verbal or written agreement.
What is estoppel by deed?
✔✔ Estoppel by deed prevents a party from denying the truth of statements made in a deed
regarding the status of property or title.
What is illusory promise in contract law?
✔✔ An illusory promise is a statement that appears to be a commitment but lacks the substance
to create a binding contract because it does not impose any actual obligation.
What does nominal damages refer to?
✔✔ Nominal damages are a small amount of money awarded to a plaintiff when a legal wrong
has occurred, but no significant harm or loss was suffered.
4
