AIC 301 FINAL EXAM STUDY GUIDE:
KEY CONCEPTS, QUESTIONS AND
ANSWERS.
Repudiation of a Contract - ANSWER-repudiation of a contract is the refusal to
meet obligations under the contract, but it must be positive and unequivocal to
constitute a breach. A statement of inability to perform in the future is not
repudiation. A person cannot sue for breach of contract until due date and
person has failed to complete the job.
Frustration of Purpose - ANSWER-A rental contract is useless to a person since
the original purpose for the rental was frustrated because the celebrity was not
there. Frustration of purpose can discharge a contract that is possible to perform,
when a supervening event destroys the propose or value of the contract,
provided that both parties are aware of that purpose or value.
Direct Action Statutes
Garnishment - ANSWER-Third parties are generally not allowed to sue insurers
of negligent parties who injure them or damage their property. Some states have
enacted direct action statutes permitting third party sue insurer directly or both
insurer and insured/wrongdoer/tortfeasor directly
If insured denies claim payments after judgement, some states allow third party
to sue the insurer directly in a statutory action called garnishment.
Consequential Damages - ANSWER-The loss of the entry fee money is an
example of consequential damages. Consequential damages are awarded by
, court to indemnify injured parties for losses that result indirectly from a wrong,
such as a breach of contract as in this situation.
Enterprise/Industry-Wide Liability
Alternative Liability
Market Share Liability
Concert of Action
Conspiracy - ANSWER-Each producer held liable based on its market share
shifting burden of proof to each of several defendants when uncertain who
caused the injury; each must prove either they did not cause harm or someone
else did
similar to alternative liability where once can be liable for damages of an entire
industry, plaintiff must sue all manufacturers; defendant not liable for entire
amount but only their pro rata share most common, when all defendants acted
together or cooperatively
agreement existed among all defendants either to commit a wrongful act or to
carry out a legal act by illegal means resulting in plaintiffs harm
Fraud - ANSWER-Fraud is a false representation of a material fact knowingly
made with intent to deceive on which the other party has placed justifiable
reliance to his or her detriment. Unilateral mistake in a contract is a perception by
one party that does not agree with the facts. Duress is the use of restraint,
violence, threats of violence, or wrongful pressure to compel a party to act
contrary to his or her wishes or interests. Undue influence is the improper use of
power or trust to deprive a person of free will and substitute another's objective,
resulting in lack of genuine assent to a contract.
KEY CONCEPTS, QUESTIONS AND
ANSWERS.
Repudiation of a Contract - ANSWER-repudiation of a contract is the refusal to
meet obligations under the contract, but it must be positive and unequivocal to
constitute a breach. A statement of inability to perform in the future is not
repudiation. A person cannot sue for breach of contract until due date and
person has failed to complete the job.
Frustration of Purpose - ANSWER-A rental contract is useless to a person since
the original purpose for the rental was frustrated because the celebrity was not
there. Frustration of purpose can discharge a contract that is possible to perform,
when a supervening event destroys the propose or value of the contract,
provided that both parties are aware of that purpose or value.
Direct Action Statutes
Garnishment - ANSWER-Third parties are generally not allowed to sue insurers
of negligent parties who injure them or damage their property. Some states have
enacted direct action statutes permitting third party sue insurer directly or both
insurer and insured/wrongdoer/tortfeasor directly
If insured denies claim payments after judgement, some states allow third party
to sue the insurer directly in a statutory action called garnishment.
Consequential Damages - ANSWER-The loss of the entry fee money is an
example of consequential damages. Consequential damages are awarded by
, court to indemnify injured parties for losses that result indirectly from a wrong,
such as a breach of contract as in this situation.
Enterprise/Industry-Wide Liability
Alternative Liability
Market Share Liability
Concert of Action
Conspiracy - ANSWER-Each producer held liable based on its market share
shifting burden of proof to each of several defendants when uncertain who
caused the injury; each must prove either they did not cause harm or someone
else did
similar to alternative liability where once can be liable for damages of an entire
industry, plaintiff must sue all manufacturers; defendant not liable for entire
amount but only their pro rata share most common, when all defendants acted
together or cooperatively
agreement existed among all defendants either to commit a wrongful act or to
carry out a legal act by illegal means resulting in plaintiffs harm
Fraud - ANSWER-Fraud is a false representation of a material fact knowingly
made with intent to deceive on which the other party has placed justifiable
reliance to his or her detriment. Unilateral mistake in a contract is a perception by
one party that does not agree with the facts. Duress is the use of restraint,
violence, threats of violence, or wrongful pressure to compel a party to act
contrary to his or her wishes or interests. Undue influence is the improper use of
power or trust to deprive a person of free will and substitute another's objective,
resulting in lack of genuine assent to a contract.
