GMGT 3300 Final Exam with Complete
Solution 100% Guaranteed Pass
What are remedies In common law? - Answer-damages, they are to place the party in
the condition they would have been in if the contract had been fulfilled
What was contract law derived from? - Answer-tort law
What Is compensation in tort law? - Answer-the objective or measurement of damages
to place the innocent party in the same position they would have been in if the tort had
not occured
The duty to mitigate - Answer-a person who has sustained a loss as a result of a breach
of contract must do what they can to mitigate the extent of the loss. the damages it can
recover at law will not include what might have been reasonably avoided (prevents
economic waste)
principle of remoteness - Answer-whether the damages were reasonably foreseeable at
the time of the contract. it is best to communicate the use of the product at the time of
the contract
categories of damages - Answer-1. special
2. punitive
3. general
liquidated damages - Answer-a term in a contract where the parties agree in advance to
the amount to be paid in damages if there is a breach. the court will only enforce it if
there is a general attempt to mitigate the loss
nominal damages - Answer-the plaintiff is right but its not worth any amount of damages
equitable remedies - Answer-stems from the court of chancery, reacting to
shortcomings in the commons law, in result to money not being good enough
basic elements of equitable remedies - Answer-1. plaintiff must have clean hands
2. plaintiff cannot have acquiescence (must act promptly)
3. refuse to intervene if there is a third party for value
4. requires substantial consideration (seal is insufficient)
,types of equitable remedies - Answer-1. specific performance
2. injunction
3. recession
specific performance - Answer-the court orders the defendant to do a specified act,
usually to complete a transaction. available in respect of land and heirlooms, must
prove damages are inadequate because material is unique
injunction - Answer-court order restraining a party to act in a particular manner, you
need a negative covenant that is a promise not to do something. no injunction will be
ordered if there are unacceptable consequences
recission - Answer-where the contract is set aside and the court puts the parties back in
the original position. sometimes its impossible to rescind
what is real property? - Answer-land and fixtures
personal property - Answer-a. chattels
b. choses in action
c. actions
what is property law? - Answer-the relationship between an item and the individual who
owns it
what is the highest form of property right? - Answer-ownership or title
choses in possession (chattels) - Answer-tangible, movable, visible, always in
possession of someone. can be a part of real property when attached to the land (a
furnace)
5 factors in determining if something is a fixture - Answer-1. nature of article
2. mode of attatchment
3. circumstances in which it was attached
4. purpose to be served** (most important)
5. position of parties
concept of liability - Answer-legal liability is a right that is enforceable by the law for
which a remedy may be obtained in a court
liability - Answer-a debt or obligation, a right that is recognized by law that can be
enforced by a person, by a court process, that can result in a court ordered remedy
what is the most dangerous form of business - Answer-partnership
,agency - Answer-relationship between the principal and its agent according to which the
principal has hired and authorized the agent to enter into contracts with third parties in
their name
who is liable for an agents torts? - Answer-the principal
core of agency law - Answer-agent is able to create contractual liability with third parties
for which the agent is not liable (power of attorney, stock broker, lawyer)
how to create agency relationships - Answer-1. express agreements
2. agency by ratification
3. agency by estoppel
4. agency by necessity
what are express agreements? - Answer-oral, written with definite understanding
between principle and agent
what is agency by ratification? - Answer-acts as agent when they know they have no
authority but hope ratification of contract will occur in future. If it doesn't alleged agent
becomes liable
what is agency by estoppel - Answer-when a person make someone believe something
exists so that others rely on believing it. the person will then be precluded from denying
it. the agent has done or said something that makes the principal believe that there is a
binding agreement when no such agreement exists
what is apparent authority? - Answer-agent has no real actual authority, but acquiescing
agent gives impression that he is an agent (could be authority in the past, an ex)
what does holding out mean? - Answer-you are representing yourself or allowing
someone to represent you 1. if someone is representing to the world that they are
someone's agent and the person knows and doesn't say otherwise 2. you represent
someone to be your agent
what is an agency by necessity? - Answer-where an agent by necessity makes a critical
decision on behalf of another party who is not in a condition to do so.
are agencies eternal? - Answer-no agencies come to an end at a specified time, the
principal should alert their close associates that that person is not agent anymore
agents fiduciary duties - Answer-1. to fulfill contractual obligations to principal
2. tort duty of care
3. obedience of lawful orders
4. personal performance: delegates cant delegate, must perform duties
5. duty of bona fides: good faith, if they don't measure up then they are liable
, what is fiduciary? - Answer-a person having duty created by his undertaking, to act
primarily for another's benefit in matters connected with such undertaking
what is the duty of bona fides? - Answer--agent must not have conflict of interest
between them and the principal
-agent cannot receive secret commissions
-agent cannot act on behalf of principal and a third party at the same time
-agent cannot intercept opportunities of the principal
what are the principals duties - Answer--commission (right to be paid)
-costs
what is quantum meruit? - Answer-get a reasonable price for work
third party duties - Answer--principal alone liable for contracts but agents should always
describe themselves
-when an agent is liable alone, the agent alone has rights and responsibilities to third
parties
-when either P or A is liable: 1. agent makes no mention of being principle or agent 2.
3rd party has the option of holding a or p liable for performance contact but can only sue
1 of them
sole proprietorships - Answer-Business organizations owned by one person.
qualities of sole proprietorships - Answer-- not a legal entity separate from its owner
-income is added to the income of the sole proprietor for tax purposes
-most common/simplest form of business entity, easy to set up/dissolve
-unlimited liability, all assets are at risk
advantages of sole proprietorships - Answer-1. ability to make all business decisions
2. right to all profits
3. right to deal with all assets without interference
4. simple to set up, inexpensive
Disadvantages of Sole Proprietorship - Answer-unlimited liability: sole proprietor is liable
for all the liabilities of the business and non business assets are exposed to creditors of
the business
prophylactic actions to prevent yourself (preventative actions) - Answer-1. insurance
2. put investments in creditor proof assets
3. make an estate plan to redistribute your property and transfer assets to other
individuals
who to transfer assets to? - Answer--not a spouse
-not your parents (if they pass then other people can get your property)
-prenups sometimes
Solution 100% Guaranteed Pass
What are remedies In common law? - Answer-damages, they are to place the party in
the condition they would have been in if the contract had been fulfilled
What was contract law derived from? - Answer-tort law
What Is compensation in tort law? - Answer-the objective or measurement of damages
to place the innocent party in the same position they would have been in if the tort had
not occured
The duty to mitigate - Answer-a person who has sustained a loss as a result of a breach
of contract must do what they can to mitigate the extent of the loss. the damages it can
recover at law will not include what might have been reasonably avoided (prevents
economic waste)
principle of remoteness - Answer-whether the damages were reasonably foreseeable at
the time of the contract. it is best to communicate the use of the product at the time of
the contract
categories of damages - Answer-1. special
2. punitive
3. general
liquidated damages - Answer-a term in a contract where the parties agree in advance to
the amount to be paid in damages if there is a breach. the court will only enforce it if
there is a general attempt to mitigate the loss
nominal damages - Answer-the plaintiff is right but its not worth any amount of damages
equitable remedies - Answer-stems from the court of chancery, reacting to
shortcomings in the commons law, in result to money not being good enough
basic elements of equitable remedies - Answer-1. plaintiff must have clean hands
2. plaintiff cannot have acquiescence (must act promptly)
3. refuse to intervene if there is a third party for value
4. requires substantial consideration (seal is insufficient)
,types of equitable remedies - Answer-1. specific performance
2. injunction
3. recession
specific performance - Answer-the court orders the defendant to do a specified act,
usually to complete a transaction. available in respect of land and heirlooms, must
prove damages are inadequate because material is unique
injunction - Answer-court order restraining a party to act in a particular manner, you
need a negative covenant that is a promise not to do something. no injunction will be
ordered if there are unacceptable consequences
recission - Answer-where the contract is set aside and the court puts the parties back in
the original position. sometimes its impossible to rescind
what is real property? - Answer-land and fixtures
personal property - Answer-a. chattels
b. choses in action
c. actions
what is property law? - Answer-the relationship between an item and the individual who
owns it
what is the highest form of property right? - Answer-ownership or title
choses in possession (chattels) - Answer-tangible, movable, visible, always in
possession of someone. can be a part of real property when attached to the land (a
furnace)
5 factors in determining if something is a fixture - Answer-1. nature of article
2. mode of attatchment
3. circumstances in which it was attached
4. purpose to be served** (most important)
5. position of parties
concept of liability - Answer-legal liability is a right that is enforceable by the law for
which a remedy may be obtained in a court
liability - Answer-a debt or obligation, a right that is recognized by law that can be
enforced by a person, by a court process, that can result in a court ordered remedy
what is the most dangerous form of business - Answer-partnership
,agency - Answer-relationship between the principal and its agent according to which the
principal has hired and authorized the agent to enter into contracts with third parties in
their name
who is liable for an agents torts? - Answer-the principal
core of agency law - Answer-agent is able to create contractual liability with third parties
for which the agent is not liable (power of attorney, stock broker, lawyer)
how to create agency relationships - Answer-1. express agreements
2. agency by ratification
3. agency by estoppel
4. agency by necessity
what are express agreements? - Answer-oral, written with definite understanding
between principle and agent
what is agency by ratification? - Answer-acts as agent when they know they have no
authority but hope ratification of contract will occur in future. If it doesn't alleged agent
becomes liable
what is agency by estoppel - Answer-when a person make someone believe something
exists so that others rely on believing it. the person will then be precluded from denying
it. the agent has done or said something that makes the principal believe that there is a
binding agreement when no such agreement exists
what is apparent authority? - Answer-agent has no real actual authority, but acquiescing
agent gives impression that he is an agent (could be authority in the past, an ex)
what does holding out mean? - Answer-you are representing yourself or allowing
someone to represent you 1. if someone is representing to the world that they are
someone's agent and the person knows and doesn't say otherwise 2. you represent
someone to be your agent
what is an agency by necessity? - Answer-where an agent by necessity makes a critical
decision on behalf of another party who is not in a condition to do so.
are agencies eternal? - Answer-no agencies come to an end at a specified time, the
principal should alert their close associates that that person is not agent anymore
agents fiduciary duties - Answer-1. to fulfill contractual obligations to principal
2. tort duty of care
3. obedience of lawful orders
4. personal performance: delegates cant delegate, must perform duties
5. duty of bona fides: good faith, if they don't measure up then they are liable
, what is fiduciary? - Answer-a person having duty created by his undertaking, to act
primarily for another's benefit in matters connected with such undertaking
what is the duty of bona fides? - Answer--agent must not have conflict of interest
between them and the principal
-agent cannot receive secret commissions
-agent cannot act on behalf of principal and a third party at the same time
-agent cannot intercept opportunities of the principal
what are the principals duties - Answer--commission (right to be paid)
-costs
what is quantum meruit? - Answer-get a reasonable price for work
third party duties - Answer--principal alone liable for contracts but agents should always
describe themselves
-when an agent is liable alone, the agent alone has rights and responsibilities to third
parties
-when either P or A is liable: 1. agent makes no mention of being principle or agent 2.
3rd party has the option of holding a or p liable for performance contact but can only sue
1 of them
sole proprietorships - Answer-Business organizations owned by one person.
qualities of sole proprietorships - Answer-- not a legal entity separate from its owner
-income is added to the income of the sole proprietor for tax purposes
-most common/simplest form of business entity, easy to set up/dissolve
-unlimited liability, all assets are at risk
advantages of sole proprietorships - Answer-1. ability to make all business decisions
2. right to all profits
3. right to deal with all assets without interference
4. simple to set up, inexpensive
Disadvantages of Sole Proprietorship - Answer-unlimited liability: sole proprietor is liable
for all the liabilities of the business and non business assets are exposed to creditors of
the business
prophylactic actions to prevent yourself (preventative actions) - Answer-1. insurance
2. put investments in creditor proof assets
3. make an estate plan to redistribute your property and transfer assets to other
individuals
who to transfer assets to? - Answer--not a spouse
-not your parents (if they pass then other people can get your property)
-prenups sometimes
