GBL 323- Exam 3 Test Questions and
Answers (Correct and Verified)
Update.
Unilateral Contract - Answer Giving something in promise of an action
Bilateral Contract - Answer Both parties exchange promises
Executed Contract - Answer Contract that has been completed
Executory Contract - Answer Contract that is yet to be performed
Void - Answer no enforceability and no legal binding effect
voidable - Answer One or both parties have the choice to cancel the contract
Enforceable - Answer Valid, good contract
Quasi Contract - Answer Someone performed something and you are responsible for the
payment
Elements to a contract - Answer Offer, Acceptance, Mutual Assent, Consideration, Capacity to
Contract, and Lawful Subject Matter
Mutual Assent - Answer meeting of minds, free from any duress
Consideration - Answer exchange of legal rights, both parties must give something up
Capacity - Answer Minors, Intoxication, Drugs.
Contract is voidable if you are insane. Court ordered Insanity contract is void
Statute of frauds - Answer the requirement that certain kinds of contracts be memorialized in
a writing, signed by the party to be charged, with sufficient content to evidence the contract.
Novation - Answer Replacing a previous agreement with a new one
, Condition Precedent - Answer an event or state of affairs that is required before something
else will occur
Kinds of Monetary Damages - Answer Nominal, Compensatory, Consequential, Liquidated
Nominal Damages - Answer damages in name only, a trifling sum awarded to recognize an
infringement of rights without resulting substantial loss or injury
Compensatory Damages - Answer intended to compensate a party for injury sustained or
make good or replace a loss caused by a wrong. Their purpose is to put the plaintiff in the same
situation she would have been in had the harm not occurred.
Consequential Damages - Answer (also known as special damages) are another form of
compensatory damages. Special damages do not flow directly and immediately from the
defendant's act, but from some of the consequences of the act.
Liquidated Damages - Answer damages whose amount the parties designate during the
formation of a contract for the injured party to collect as compensation upon a specific breach
Injunction - Answer equitable remedy in the form of a court order that compels a party to do
or refrain from specific acts
Specific Performance - Answer order of a court which requires a party to perform a specific
act, usually what is stated in a contract
Reformation - Answer the a judicial correction or change of an existing document by court
order upon petition of one of the parties to the document
Rescission - Answer the revocation, cancellation, or repeal of a law, order, or agreement.
Subsequent - Answer Beneficiary receives the money from life insurance unless suicide
Concurrent Condition - Answer condition which should occur or be performed
simultaneously with another condition
Fiduciary Relationship - Answer where one person places complete confidence in another in
regard to a particular transaction or one's general affairs or business
Answers (Correct and Verified)
Update.
Unilateral Contract - Answer Giving something in promise of an action
Bilateral Contract - Answer Both parties exchange promises
Executed Contract - Answer Contract that has been completed
Executory Contract - Answer Contract that is yet to be performed
Void - Answer no enforceability and no legal binding effect
voidable - Answer One or both parties have the choice to cancel the contract
Enforceable - Answer Valid, good contract
Quasi Contract - Answer Someone performed something and you are responsible for the
payment
Elements to a contract - Answer Offer, Acceptance, Mutual Assent, Consideration, Capacity to
Contract, and Lawful Subject Matter
Mutual Assent - Answer meeting of minds, free from any duress
Consideration - Answer exchange of legal rights, both parties must give something up
Capacity - Answer Minors, Intoxication, Drugs.
Contract is voidable if you are insane. Court ordered Insanity contract is void
Statute of frauds - Answer the requirement that certain kinds of contracts be memorialized in
a writing, signed by the party to be charged, with sufficient content to evidence the contract.
Novation - Answer Replacing a previous agreement with a new one
, Condition Precedent - Answer an event or state of affairs that is required before something
else will occur
Kinds of Monetary Damages - Answer Nominal, Compensatory, Consequential, Liquidated
Nominal Damages - Answer damages in name only, a trifling sum awarded to recognize an
infringement of rights without resulting substantial loss or injury
Compensatory Damages - Answer intended to compensate a party for injury sustained or
make good or replace a loss caused by a wrong. Their purpose is to put the plaintiff in the same
situation she would have been in had the harm not occurred.
Consequential Damages - Answer (also known as special damages) are another form of
compensatory damages. Special damages do not flow directly and immediately from the
defendant's act, but from some of the consequences of the act.
Liquidated Damages - Answer damages whose amount the parties designate during the
formation of a contract for the injured party to collect as compensation upon a specific breach
Injunction - Answer equitable remedy in the form of a court order that compels a party to do
or refrain from specific acts
Specific Performance - Answer order of a court which requires a party to perform a specific
act, usually what is stated in a contract
Reformation - Answer the a judicial correction or change of an existing document by court
order upon petition of one of the parties to the document
Rescission - Answer the revocation, cancellation, or repeal of a law, order, or agreement.
Subsequent - Answer Beneficiary receives the money from life insurance unless suicide
Concurrent Condition - Answer condition which should occur or be performed
simultaneously with another condition
Fiduciary Relationship - Answer where one person places complete confidence in another in
regard to a particular transaction or one's general affairs or business
