WGU C713 BUSINESS LAW EXAM EXAM 2 VERSIONS
(VERSION A AND B) COMPLETE 400 QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
Voluntary Consent - ANSWER: The knowing and voluntary agreement to the terms of
a contract. If lacking, the contract will be voidable.
Adhesion Contracts - ANSWER: A "standard-form" contract, such as that between a
large retailer and a consumer, in which the stronger party dictates the terms.
Bilateral Mistake - ANSWER: A mistake that occurs when both parties to a contract
are mistaken about the same material fact.
Innocent Misrepresentation - ANSWER: A false statement of fact or an act made in
good faith that deceives and causes harm or injury to another.
Latent Defects - ANSWER: A defect that is not obvious or cannot readily be
ascertained.
Negligent Misrepresentation - ANSWER: Any manifestation through words or
conduct that amounts to an untrue statement of fact made in circumstances in
which a reasonable and prudent person would not have done (or failed to do) that
which led to the misrepresentation.
A representation made with an honest belief in its truth may still be negligent due
to: - ANSWER: (1) a lack of reasonable care in ascertaining the facts,
(2) the manner of expression, or
(3) the absence of the skill or competence required by a particular business or
profession.
Scienter - ANSWER: Knowledge by the misrepresenting party that material facts have
been falsely represented or omitted with an intent to deceive.
Undue Influence - ANSWER: Persuasion that is less than actual force but more than
advice and that induces a person to act according to the will or purposes of the
dominating party.
Unilateral Mistake - ANSWER: A mistake that occurs when one party to a contract is
mistaken as to a material fact.
Duress - ANSWER: The use of threats to force a party to enter into a contract.
Collateral Promise - ANSWER: A secondary promise that is ancillary (subsidiary) to a
principal transaction or primary contractual relationship, such as a promise made by
one person to pay the debts of another if the latter fails to perform. Normally must
be in writing to be enforceable.
, Integrated Contract - ANSWER: A written contract that constitutes the final
expression of the parties' agreement. If a contract is this, evidence extraneous to the
contract that contradicts or alters the meaning of the contract in any way is
inadmissible.
Parol Evidence Rule - ANSWER: A substantive rule of contracts under which a court
will not receive into evidence the parties' prior negotiations, prior agreements, or
contemporaneous oral agreements if that evidence contradicts or varies the terms of
the parties' written contract.
Prenuptial Agreements - ANSWER: An agreement made before marriage that defines
each partner's ownership rights in the other partner's property. Must be in writing to
be enforceable.
Statute of Frauds - ANSWER: A state statute under which certain types of contracts
must be in writing to be enforceable.
-Aimed at preventing harm to innocent parties by requiring written evidence of key
transactions.
Alienation - ANSWER: In real property law, the voluntary transfer of property from
one person to another (as opposed to a transfer by operation of law).
Assignee - ANSWER: The person to whom contract rights are assigned.
Assignment - ANSWER: The act of transferring to another all or part of one's rights
arising under a contract.
Assignor - ANSWER: One to whom contract duties are delegated by another, called
the delegator.
Delegatee - ANSWER: One to whom contract duties are delegated by another, called
the delegator.
Delegation - ANSWER: The transfer of a contractual duty to a third party. The party
delegating the duty (the delegator) to the third party (the delegatee) is still obliged
to perform on the contract should the delegatee fail to perform.
Delegator - ANSWER: One who delegates his or her duties under a contract to
another, called the delegatee.
Incidental Beneficiary - ANSWER: A third party who incidentally benefits from a
contract but whose benefit was not the reason the contract was formed. This has no
rights in a contract and cannot sue to have the contract enforced.
Intended Beneficiary - ANSWER: A third party for whose benefit a contract is formed.
Can sue the promisor if such a contract is breached.
(VERSION A AND B) COMPLETE 400 QUESTIONS WITH
DETAILED VERIFIED ANSWERS /ALREADY GRADED A+
Voluntary Consent - ANSWER: The knowing and voluntary agreement to the terms of
a contract. If lacking, the contract will be voidable.
Adhesion Contracts - ANSWER: A "standard-form" contract, such as that between a
large retailer and a consumer, in which the stronger party dictates the terms.
Bilateral Mistake - ANSWER: A mistake that occurs when both parties to a contract
are mistaken about the same material fact.
Innocent Misrepresentation - ANSWER: A false statement of fact or an act made in
good faith that deceives and causes harm or injury to another.
Latent Defects - ANSWER: A defect that is not obvious or cannot readily be
ascertained.
Negligent Misrepresentation - ANSWER: Any manifestation through words or
conduct that amounts to an untrue statement of fact made in circumstances in
which a reasonable and prudent person would not have done (or failed to do) that
which led to the misrepresentation.
A representation made with an honest belief in its truth may still be negligent due
to: - ANSWER: (1) a lack of reasonable care in ascertaining the facts,
(2) the manner of expression, or
(3) the absence of the skill or competence required by a particular business or
profession.
Scienter - ANSWER: Knowledge by the misrepresenting party that material facts have
been falsely represented or omitted with an intent to deceive.
Undue Influence - ANSWER: Persuasion that is less than actual force but more than
advice and that induces a person to act according to the will or purposes of the
dominating party.
Unilateral Mistake - ANSWER: A mistake that occurs when one party to a contract is
mistaken as to a material fact.
Duress - ANSWER: The use of threats to force a party to enter into a contract.
Collateral Promise - ANSWER: A secondary promise that is ancillary (subsidiary) to a
principal transaction or primary contractual relationship, such as a promise made by
one person to pay the debts of another if the latter fails to perform. Normally must
be in writing to be enforceable.
, Integrated Contract - ANSWER: A written contract that constitutes the final
expression of the parties' agreement. If a contract is this, evidence extraneous to the
contract that contradicts or alters the meaning of the contract in any way is
inadmissible.
Parol Evidence Rule - ANSWER: A substantive rule of contracts under which a court
will not receive into evidence the parties' prior negotiations, prior agreements, or
contemporaneous oral agreements if that evidence contradicts or varies the terms of
the parties' written contract.
Prenuptial Agreements - ANSWER: An agreement made before marriage that defines
each partner's ownership rights in the other partner's property. Must be in writing to
be enforceable.
Statute of Frauds - ANSWER: A state statute under which certain types of contracts
must be in writing to be enforceable.
-Aimed at preventing harm to innocent parties by requiring written evidence of key
transactions.
Alienation - ANSWER: In real property law, the voluntary transfer of property from
one person to another (as opposed to a transfer by operation of law).
Assignee - ANSWER: The person to whom contract rights are assigned.
Assignment - ANSWER: The act of transferring to another all or part of one's rights
arising under a contract.
Assignor - ANSWER: One to whom contract duties are delegated by another, called
the delegator.
Delegatee - ANSWER: One to whom contract duties are delegated by another, called
the delegator.
Delegation - ANSWER: The transfer of a contractual duty to a third party. The party
delegating the duty (the delegator) to the third party (the delegatee) is still obliged
to perform on the contract should the delegatee fail to perform.
Delegator - ANSWER: One who delegates his or her duties under a contract to
another, called the delegatee.
Incidental Beneficiary - ANSWER: A third party who incidentally benefits from a
contract but whose benefit was not the reason the contract was formed. This has no
rights in a contract and cannot sue to have the contract enforced.
Intended Beneficiary - ANSWER: A third party for whose benefit a contract is formed.
Can sue the promisor if such a contract is breached.
