LSTD 2106 EXAM 2 QUESTIONS AND
ANSWERS 100% ACCURATE
Define offer - ANSWER--a promise or commitment to do or refrain from doing a
specified activity
-the expression of a willingness to enter into a contract by the offeror's promising an
offeree that she will perform certain obligations in exchange for the offeree's
counterpromise to perform.
mailbox rule - ANSWER--provides that the acceptance of an offer is generally effective
upon dispatch of the acceptance when sent in a commerciallyreasonable manner and
not when the acceptance is received by the offeror
-governs common law contracts
mutual mistake - ANSWER--both parties hold erroneous belief
-may be the basis for canceling a contract
-also called avoiding the contract
Consideration - ANSWER--the mutual exchange of benefits and detriments
-each party receives something of value from the other and each party gives up
something of value, called legal detriment, to the other
-results in a bargained-for exchange
undue influence - ANSWER-Allows the influenced party to avoid a contract when the
court determines that the terms of the contract are unfair and the parties had some type
of relationship that involved a fiduciary duty or some duty to care for the influenced
party.
-Improper pressure of a trusted relationship
Liquidated Damages - ANSWER-Damages that the parties agree to ahead of time.
-Damages cannot be excessive so as to penalize the breaching party.
Specific damages - ANSWER-Remedy whereby a court orders the breaching party to
render the promised performance by ordering the party to take a specific action.
-Available only when the subject matter of the contract is sufficiently unique so that
money damages are inadequate.
Reformation - ANSWER-When the parties have imperfectly expressed their agreement
and this imperfection results in a dispute, a court may change the contract by rewriting it
to conform to the parties' actual intentions.
, Statute of Frauds - ANSWER-the law governing which contracts must be in writing in
order to be enforceable.
•The statute's purpose is to prevent fraud by requiring that certain contracts have written
evidence of their existence and terms in order to be enforceable.
condition subsequent - ANSWER-an event that occurs after the performance under the
contract and discharges the parties' obligations
Parties agree on terms and the parties perform the contractual obligations in good faith
in order to complete the contract.
•This completion is known as discharge, because both parties have now "discharged"
their obligation to the other by performing the agreed-upon duties.
rescission - ANSWER-neither party has fully performed, the parties may agree to cancel
the contract
-each party gives up rights under the contract in exchange for the release by the other
party from performing their obligations
substitute agreement - ANSWER-generally used to compromise when two parties have
a dispute as to performance of the contract and wish to amend its terms.
-immediately discharges any obligations under the original contract.
novation - ANSWER-a kind of substitute agreement that involves a substitute third party
rather than a substitute promise
-revokes and discharges all of the replaced party's obligations under the old contract.
Impossibility
•Impracticability
•Frustration of purpose
Impossibility - ANSWER-After the parties have entered an agreement, the contemplated
performance of the obligations may become impossible and, therefore, may be subject
to discharge.
-must be objective
Frustration of Purpose - ANSWER-may be used to discharge an obligation if, after the
parties enter into an agreement
-a party's principal purpose is substantially frustrated without her fault
-some event occurs, when the nonoccurrence of the event was a central assumption of
both parties when entering into the contract
-the parties have not otherwise agreed on who bears the risk of such an occurrence.
rule of exactness - ANSWER-applies when the infringer makes, uses, or sells an
invention that is exactly the same as the patent holder's claims in the patent application
rule of omission - ANSWER-When the alleged infringing invention lacks an essential
element of the patent holder's claims in the patent application
ANSWERS 100% ACCURATE
Define offer - ANSWER--a promise or commitment to do or refrain from doing a
specified activity
-the expression of a willingness to enter into a contract by the offeror's promising an
offeree that she will perform certain obligations in exchange for the offeree's
counterpromise to perform.
mailbox rule - ANSWER--provides that the acceptance of an offer is generally effective
upon dispatch of the acceptance when sent in a commerciallyreasonable manner and
not when the acceptance is received by the offeror
-governs common law contracts
mutual mistake - ANSWER--both parties hold erroneous belief
-may be the basis for canceling a contract
-also called avoiding the contract
Consideration - ANSWER--the mutual exchange of benefits and detriments
-each party receives something of value from the other and each party gives up
something of value, called legal detriment, to the other
-results in a bargained-for exchange
undue influence - ANSWER-Allows the influenced party to avoid a contract when the
court determines that the terms of the contract are unfair and the parties had some type
of relationship that involved a fiduciary duty or some duty to care for the influenced
party.
-Improper pressure of a trusted relationship
Liquidated Damages - ANSWER-Damages that the parties agree to ahead of time.
-Damages cannot be excessive so as to penalize the breaching party.
Specific damages - ANSWER-Remedy whereby a court orders the breaching party to
render the promised performance by ordering the party to take a specific action.
-Available only when the subject matter of the contract is sufficiently unique so that
money damages are inadequate.
Reformation - ANSWER-When the parties have imperfectly expressed their agreement
and this imperfection results in a dispute, a court may change the contract by rewriting it
to conform to the parties' actual intentions.
, Statute of Frauds - ANSWER-the law governing which contracts must be in writing in
order to be enforceable.
•The statute's purpose is to prevent fraud by requiring that certain contracts have written
evidence of their existence and terms in order to be enforceable.
condition subsequent - ANSWER-an event that occurs after the performance under the
contract and discharges the parties' obligations
Parties agree on terms and the parties perform the contractual obligations in good faith
in order to complete the contract.
•This completion is known as discharge, because both parties have now "discharged"
their obligation to the other by performing the agreed-upon duties.
rescission - ANSWER-neither party has fully performed, the parties may agree to cancel
the contract
-each party gives up rights under the contract in exchange for the release by the other
party from performing their obligations
substitute agreement - ANSWER-generally used to compromise when two parties have
a dispute as to performance of the contract and wish to amend its terms.
-immediately discharges any obligations under the original contract.
novation - ANSWER-a kind of substitute agreement that involves a substitute third party
rather than a substitute promise
-revokes and discharges all of the replaced party's obligations under the old contract.
Impossibility
•Impracticability
•Frustration of purpose
Impossibility - ANSWER-After the parties have entered an agreement, the contemplated
performance of the obligations may become impossible and, therefore, may be subject
to discharge.
-must be objective
Frustration of Purpose - ANSWER-may be used to discharge an obligation if, after the
parties enter into an agreement
-a party's principal purpose is substantially frustrated without her fault
-some event occurs, when the nonoccurrence of the event was a central assumption of
both parties when entering into the contract
-the parties have not otherwise agreed on who bears the risk of such an occurrence.
rule of exactness - ANSWER-applies when the infringer makes, uses, or sells an
invention that is exactly the same as the patent holder's claims in the patent application
rule of omission - ANSWER-When the alleged infringing invention lacks an essential
element of the patent holder's claims in the patent application
