Business Law Exam #2 – 2026 – Study Guide and
Practice Material
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
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
Practice Material
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
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
