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BUSINESS LAW EXAM #2 (STUDY GUIDE)
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
Contract Ans: Agreement that is enforceable by a court of law or equity
Unilateral Contract Ans: A contract in which the offeror's offer can be
accepted only by the performance of an act by the offeree. (A promise for
an act)
Express Contract Ans: An agreement that is expressed in written or oral
words
Quasi-Contract Ans: An equitable doctrine whereby a court may award
monetary damages to a plaintiff for providing work or services to a
defendant even though no contract existed. Created to prevent unjust
enrichment. AKA Implied-in-law Contract
Auction Ans: A sale in which a seller of goods offers goods for sale
through an auctioneer
Mirror Image Rule Ans: A rule that states that when acceptance to exist
the offeree must accept the terms as stated in the offer
Preexisting duties Ans: Something a person is already an obligation to
do. A promise lacks consideration if a person promises to perform this
Consent Ans: a plea entered by a civil defendant who has been sued by
the government whereby the accused agrees to the imposition of a
penalty but does not admit liability
Permission to do something
Undue Influence Ans: A situation in which one person takes advantage
of anther's mental, emotional, or physical weakness and unduly
persuades that person to enter into a contract or make a will
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Parol Evidence Ans: Any oral or written words outside the four corners
of a written contract
Statute of Frauds Ans: A state stature that requires certain types of
contracts to be in writing
Conditions Ans: A qualification of a promise that becomes a covenant if
it is met. Three types: precedent, subsequent, and concurrent
Legal Damages Ans: These are monetary awards that the law imposes
for a breach of some duty or violation of some right
Discharge Ans: Comes from liability on negotiable instruments
Specific Performance Ans: A remedy that orders the breaching party to
perform the acts promised in the contract. Usually awarded in cases in
which the subject-matter is unique, such as contracts involving land,
heirlooms, and paintings
Statute of Limitations Ans: A federal or state statute setting the
maximum time period during which a certain action can be brought or
certain rights enforced
Licensing Statute Ans: Statute that requires a person or business to
obtain a license from the government prior to engaging in a specified
occupation or activity
Incidental Beneficiary Ans: A third party that has unintentionally
benefited from another's contract
Restraining Injunction Ans: requires a person to do or cease doing a
specific action
Digital Signature Ans: A contract digitally signed by a company or
person
Electronics Communications Privacy Act Ans: A federal statute that
makes it a crime without the victims consent to interpret an electronic
communication at the point of transmission, while in transit, when stored
by a router or server or after receipt by the intended recipient
BUSINESS LAW EXAM #2 (STUDY GUIDE)
QUESTIONS WITH DETAILED VERIFIED
ANSWERS
Contract Ans: Agreement that is enforceable by a court of law or equity
Unilateral Contract Ans: A contract in which the offeror's offer can be
accepted only by the performance of an act by the offeree. (A promise for
an act)
Express Contract Ans: An agreement that is expressed in written or oral
words
Quasi-Contract Ans: An equitable doctrine whereby a court may award
monetary damages to a plaintiff for providing work or services to a
defendant even though no contract existed. Created to prevent unjust
enrichment. AKA Implied-in-law Contract
Auction Ans: A sale in which a seller of goods offers goods for sale
through an auctioneer
Mirror Image Rule Ans: A rule that states that when acceptance to exist
the offeree must accept the terms as stated in the offer
Preexisting duties Ans: Something a person is already an obligation to
do. A promise lacks consideration if a person promises to perform this
Consent Ans: a plea entered by a civil defendant who has been sued by
the government whereby the accused agrees to the imposition of a
penalty but does not admit liability
Permission to do something
Undue Influence Ans: A situation in which one person takes advantage
of anther's mental, emotional, or physical weakness and unduly
persuades that person to enter into a contract or make a will
, Page | 2
Parol Evidence Ans: Any oral or written words outside the four corners
of a written contract
Statute of Frauds Ans: A state stature that requires certain types of
contracts to be in writing
Conditions Ans: A qualification of a promise that becomes a covenant if
it is met. Three types: precedent, subsequent, and concurrent
Legal Damages Ans: These are monetary awards that the law imposes
for a breach of some duty or violation of some right
Discharge Ans: Comes from liability on negotiable instruments
Specific Performance Ans: A remedy that orders the breaching party to
perform the acts promised in the contract. Usually awarded in cases in
which the subject-matter is unique, such as contracts involving land,
heirlooms, and paintings
Statute of Limitations Ans: A federal or state statute setting the
maximum time period during which a certain action can be brought or
certain rights enforced
Licensing Statute Ans: Statute that requires a person or business to
obtain a license from the government prior to engaging in a specified
occupation or activity
Incidental Beneficiary Ans: A third party that has unintentionally
benefited from another's contract
Restraining Injunction Ans: requires a person to do or cease doing a
specific action
Digital Signature Ans: A contract digitally signed by a company or
person
Electronics Communications Privacy Act Ans: A federal statute that
makes it a crime without the victims consent to interpret an electronic
communication at the point of transmission, while in transit, when stored
by a router or server or after receipt by the intended recipient
