Bus Law Test #2

Front 1

Breach of Contract

Back 1

When one party to a contract refuses or is unable to perform as required by the contract or performs in an unsatisfactory manner.

Front 2

Contractual Capacity

Back 2

A person of legal age who is capable of understanding the meaning of a contract.

Front 3

Disaffirm

Back 3

A statement or action showing the intent not to abide by the terms of a contract.

Front 4

Emancipation

Back 4

When minors are no longer under the control of their parents and are responsible for their contracts.

Front 5

Executed Contract

Back 5

A contract that has been completed by all parties.

Front 6

Expressed Contract

Back 6

A contract that explicitly states the agreement of the parties.

Front 7

Implied Contract

Back 7

A contract that does not explicitly state the agreement of the parties but the terms of the agreement can be inferred by the actions or conducts of the parties.

Front 8

Executory Contract

Back 8

A contract where all conditions have not been completed by all parties.

Front 9

Minor

Back 9

An individual who has not reached the age of majority, usually 18 years of age.

Front 10

Necessaries

Back 10

Goods and services that are essential to a minor for health and welfare. Typically food, clothing, and shelter.

Front 11

Oral Contract

Back 11

An agreement that is not written or signed by the parties where the entire contract is created by the conversation or actions of the parties.

Front 12

Promisee

Back 12

The party to whom a promise is made.

Front 13

Promisor

Back 13

The party making a promise.

Front 14

Ratification

Back 14

Statements or actions of a party that show intent to be bound by the terms and conditions of a contract.

Front 15

Valid Contract

Back 15

An agreement resulting in an obligation that is legally enforceable.

Front 16

Void Contract

Back 16

An agreement that is not enforceable from the beginning because it lacks one of the requirements of a valid contract.

Front 17

Voidable Contract

Back 17

An agreement that can be rejected by one of the parties for a legally acceptable reason; typically a minor or incapacitated individual.

Front 18

Bilateral Contract

Back 18

A contract in which acceptance of the offer is deemed to be completed when the offeree makes a promise to perform; a promise for a promise.

Front 19

Consideration

Back 19

The promise to give up something of value that a party to a contact has legal right to keep, or to do something that the party is not otherwise legally required to do.

Front 20

Counteroffer

Back 20

Response to an offer in which the terms or conditions of the original offer are changed.

Front 21

Detrimental Reliance

Back 21

Where one party changes his or her position in reliance upon the statements or actions of the other party.

Front 22

Mail Box Rule

Back 22

States that acceptance becomes effective when it is sent if the method of acceptance is the same as that used to make the offer.

Front 23

Objective Theory of Contract

Back 23

States that an offeror's intent is determined by what a reasonable person in the offeree's position would conclude based upon the offeror's words or actions.

Front 24

Offeree

Back 24

Is the party to whom an offer is made.

Front 25

Offeror

Back 25

Is the party making an offer.

Front 26

Revocation

Back 26

The calling back of an offer by the offeror before an offer has been accepted or rejected.

Front 27

Unilateral Contract

Back 27

A contract where the offer can only be accepted by performance.

Front 28

Contract of Adhesion

Back 28

A contract drawn by one party that must be accepted as is on a take it or leave it basis.

Front 29

Duress

Back 29

The act of applying unlawful or improper pressure or influence to a person to gain his or her agreement to a contract.

Front 30

Material Fact

Back 30

A fact that a reasonable person would feel was important in making a decision.

Front 31

Misrepresentation

Back 31

A misstatement of material fact that results in inducing another to enter into an agreement to his or her injury.

Front 32

Mistake

Back 32

A belief that is not in accord with the facts.

Front 33

Parol Evidence Rule

Back 33

Rule that any spoken or written words in conflict with what the written contract states cannot be introduced as evidence in a court of law.

Front 34

Statute of Frauds

Back 34

Law requiring certain contracts to be in writing in order to be enforceable.

Front 35

Undue Influence

Back 35

The improper use of excessive pressure by the dominant member of a confidential relationship to convince the weaker party to enter a contract that greatly benefits the dominant party.

Front 36

Accord and Satisfaction

Back 36

When the parties to a contact agree to substitute a third party for one of the original parties and the original parties remain liable for the performance of the contact.

Front 37

Anticipatory Breach

Back 37

When a party to a contract announces his or her intention to break a contract where performance is not yet due.

Front 38

Compensatory Damages

Back 38

An award to the non-breaching party in a contract intended to put that party in the same position he or she would have been in had the contact been completed as agreed.

Front 39

Complete Performance

Back 39

Occurs when the duties of each party have been completed exactly as required by the contract.

Front 40

Condition Subsequent

Back 40

A condition to a contract that must be met after the contract is entered into.

Front 41

Condition Precedent

Back 41

A condition to a contract that must occur before the parties have an obligation to perform.

Front 42

Consequential Damages

Back 42

Are foreseeable as a consequence of a party's breach of contract.

Front 43

Material Breach

Back 43

Failure, without legal excuse, to perform any promise which forms the whole or part of a contract where one side is completely deprived of the benefits expected under the contract.

Front 44

Mitigation

Back 44

The obligation of the non-breaching party to protect the breaching party from unnecessary damages.

Front 45

Nominal Damages

Back 45

Are damages for a breach which incurred little or no financial loss.

Front 46

Novation

Back 46

When the parties to a contract agree to substitute a third party for one of the original parties and the original party who was substituted out has no further obligations or liability under the contract.

Front 47

Punitive Damages

Back 47

Tort concept of damages meant to punish the breaching party.

Front 48

Restitution

Back 48

The return of property by a non-performing party in order to avoid unjust enrichment.

Front 49

Specific Performance

Back 49

Remedy requiring the performance of the acts promised in the contract (as opposed to compensatory damages.)

Front 50

Substantial Performance

Back 50

Where most of the benefits promised in the contract have been delivered in good faith.

Front 51

Agent

Back 51

A person authorized to act for or in place of another.

Front 52

Collective Bargaining Agreement

Back 52

The employment contract negotiated by a union, which defines the terms and conditions of employment on behalf of its members.

Front 53

Employee

Back 53

A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed.

Front 54

Employment-At-Will

Back 54

The doctrine that provides that, absent express agreement to contrary, either the employer or employee may terminate the employment relationship at any time.

Front 55

Family Medical Leave

Back 55

Federal or state laws which protect employees by providing leave from employment for family or medical reasons.

Front 56

Independent Contractor

Back 56

A person who contracts with another to do something for him/her but who is not controlled by the other nor subject to the other's right to control with respect to his/her physical conduct in the performance of the work.

Front 57

Labor Union

Back 57

A combination or association of workers organized for purpose of obtaining benefits for workers, such as favorable wages, benefits, and work conditions.

Front 58

MediCare

Back 58

A federal program created to provide subsidized health insurance for elderly and disabled citizens.

Front 59

Minimum Wage

Back 59

The lowest wage that an employer may pay an employee as set by federal or state law.

Front 60

Social Security

Back 60

The federal program which provides for retirement, survivors, and disability benefits for workers.

Front 61

Unemployment Insurance

Back 61

A state administered system which provides unemployment compensation benefits to eligible individuals.

Front 62

Vicarious Liability

Back 62

Is liability placed on one person for the actionable conduct of another, based upon the relationship between the two persons. Examples include parents liable for children and employers liable for employees.

Front 63

Worker's Compensation

Back 63

State and federal systems which provide administrative procedures for fixed compensation to employees who are injured on the job.

Front 64

Wrongful Discharge

Back 64

An employee's cause of action based on allegations that he or she was fired in violation of the employment agreement or exceptions to the at will employment doctrine.