Basic Contract Law for Paralegals Chapters 1-8 Exam (Latest 2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A+

Basic Contract Law for Paralegals Chapters 1 -8 Exam (Latest 2024/ 2025 Update) Questions and Verified Answers| 100% Correct| Grade A+ Legality ✔✔The condition of conformity with the law; lawfulness. Usury ✔✔Charging a rate of interest that exceeds the rate permitted by law. Surrogacy Con tract ✔✔A situation where a woman who "hosts" the fertilized egg of another woman in her womb or who is artificially inseminated with the sperm of a man who is in a relationship with someone else agrees to assign her parental rights to the donors. Prenup tial Agreement ✔✔An agreement between two independent individuals prior to marriage that sets forth the terms and conditions of the division of property, in the event of a divorce. Covenant Not to Compete (Restrictive Covenant) ✔✔A provision in a contrac t that restricts a party's ability to compete. These often arise in employment or business contracts. Exculpatory Clause ✔✔A clause in a contract or other legal document excusing a party from liability for a wrongful act. Restitution ✔✔A remedy that r estores the status quo. Divisible Contract ✔✔A contract whose parts are capable of separate or independent treatment; a contract that is enforceable as to a part which is valid; even though another part is invalid and unenforceable. Mutual Assent ✔✔A meeting of the minds; consent; agreement. Rescission ✔✔The abrogation, annulment or cancellation of a contract by the act of a party. May occur by mutual consent of the parties. Unconscionability ✔✔A form of contract where a dominant party has taken unfair advantage of a weaker party and has imposed terms and conditions that are unreasonable and one -sided. Fraud ✔✔Deceit, deception, or trickery that is intended to induce, and does induce, another to part with anything of value or surrender some lega l right. Misrepresentation ✔✔A misstatement of fact or omission of fact made innocently, without the intent to deceive. Exculpatory Clause ✔✔A clause in a contract excusing a party from liability for a wrongful act; courts will sometimes enforce such c lauses, but courts do not favor them. Fiduciary Relationship ✔✔A relationship between two persons in which one is obligated to act with the utmost good faith, honesty, and loyalty on behalf of the other. Plaintiff ✔✔A person who brings a lawsuit. Defendant ✔✔The person against whom an action is brought. Mistake ✔✔An error, a misunderstanding; an inaccuracy in contract formation. Mutual Mistake ✔✔A misconception common to both parties to an agreement, each laboring under the same set of facts with respect to a material fact justifying reformation of the contract or rescission. Unilateral Mistake ✔✔A misconception by one, but not both, parties to a contract, with respect to the terms of the contract. Coercion ✔✔The practice of persuading so meone to do something by using force or threats. Duress ✔✔Coercion applied for the purpose of compelling a person to do, or to refrain from doing, some act. Undue Influence ✔✔Inappropriate pressure exerted on a person for the purpose of causing a per son to substitute his or her will for the will or wishes of another. Procedural Unconscionability ✔✔Circumstance where one party to a contract lacks meaningful choice or assent to a contract. Substantive Unconscionability ✔✔Circumstances in which contr act terms are overly harsh or oppressive against one party. Boilerplate ✔✔Language common to all legal documents of the same type; standardized language. Adhesion Contract ✔✔A contract prepared by the dominant party (usually a form contract) and presen ted on a take -it-or-leave -it basis to the weaker party, who has no real opportunity to bargain about its terms. Overreaching ✔✔Taking unfair advantage in bargaining. Installment Contract ✔✔A contract that requires or authorizes the delivery of goods in separate lots.