Business Law Test 2 Ch 13 Set 2

Front 1

Contract is void
Contracts in violation of criminal statutes
Examples: Contract to have someone killed; contract to pay for a vote

Back 1

contracts with illegal subject matter

Front 2

Contracts in Violation of Licensing Statutes Must Be ------------as Opposed to ---------- For Contracts to Be Void. ex-architect forgets to pay the annual renewal fee, architect is permitted to collect fee. This is revenue raising

Back 2

Competency-Based, Revenue-raising

Front 3

Contracts in Violation of ------- Charging Interest in Excess of Statutory Maximum is void.

Back 3

Usury Laws

Front 4

Contracts in Violation of Public Policy
that purport to hold firms completely blameless for any accidents occurring on their premises. Are usually not enforced in court.

Back 4

exculpatory clauses

Front 5

are permitted by courts so long as they are reasonable in time and geographic scope. ex-selling a business with goodwill and then moving down the street.

Back 5

covenants not to compete

Front 6

a contract in violation of public policy that gives all the benefits to one side and all the burdens to the other. set on a case by case basis. - ex- consumer rental contracts are declared this because the consumers were paying more to rent than to buy an appliance.

Back 6

unconscionable

Front 7

prescribed events that must occur before performance is required.

Back 7

conditions

Front 8

an event or action that must take place before a contract is required to be performed; for example, qualifying for financing before a lender's performance on a mortgage loan.

Back 8

condition precedent

Front 9

in contracts, the conditions that must occur simultaneously for contract performance to be required.

Back 9

conditions concurrent

Front 10

allowed in contract cases
= Nonmaterial Breach. applies in construction contracts, and it means that the constructed building is for practical purposes just as good as the one contracted for. ex builder substitutes a type of pipe when brand name wasn't available specified in contract. builder still gets paid.

Back 10

substantial performance

Front 11

under common law, the parties are excused from performance if performance has become --------

Back 11

impossible

Front 12

means that the contract cannot be performed by the parties or anyone else. ex-performance under a contract for the purchase and sale of land that has been washed away into a lake.

Back 12

impossibility

Front 13

under UCC, performance can be excused in cases of ----- ------

Back 13

commercial impracticability

Front 14

excuses performance if the basic assumptions the parties made when they entered into the contract have changed. courts are reluctant to apply this.

Back 14

commercial impracticability

Front 15

parties can protect themselves from unusual events by putting in their contracts ---- ---- -----

Back 15

force majeure clauses

Front 16

excuse parties from performance in the event of such problems as wars, depression, or embargoes, ex- world trade center attacks caused many contracts to be excused for impossibility, all air traffic was haled so overnight shipping contract performances were excused.

Back 16

for majeure clauses

Front 17

obligation to perform can be discharged by agreement of parties. in some cases parties substitute someone else for the obligation in an agreement called a --------.

Back 17

novation

Front 18

Two original parties agree, along with third party, to substitute one party for another

Back 18

Novation

Front 19

an agreement (accord) to pay a certain amount, the payment of which constitutes full payment (satisfaction) of that debt. Agreement reached to discharge a disputed obligation

Back 19

accord and satisfaction

Front 20

if performance is not excused and there is a valid contract, the non breaching party can recover for damages from the non performing party.

Back 20

compensatory damages