BUL 3320 Exam 2 Questions with
Complete Answers
Firm Offer - ANSWER-a "merchants's" offer to sell of buy goods in a signed writing
that promises it will not be withdrawn is enforceable for up to three months
Auctions - ANSWER-auctioneer does not make offers to sell the property being
auctioned but invites offers to buy.
Mirror Image Rule - ANSWER-an acceptance can not deviate from the terms of an
offer.
When effective - ANSWER-Revocation- terminates power
rejection- terminates offer
acceptance- forms a contract
Fraud in the inducement - ANSWER-misrepresentation regarding the subject matter
of a contract that induces the other party to enter into the contract; renders the
contract voidable.
Duress - ANSWER-wrongful of unlawful act or threat that overcomes the free will of
a party
Undue Influence - ANSWER-taking unfair advantage of a person by reason of a
dominant position based on a confidential relationship.
Fraudulent vs. Non-Fraudulent Mis Representation - ANSWER-Fraudulent
(Negligent)- made without due care.
Non-Fraudulent (Innocent)- made without knowledge of falsity, with due care.
Fraud in the execution - ANSWER-a misrepresentation that deceives the other party
as to the very nature of the contract; renders the agreement void.
Pre-Existing Contractual Duty - ANSWER-performance of a pre-existing contractual
duty is not not consideration.
Promise to pay debt barred by the statute of limitations - ANSWER-a new promise
by the debtor to pay the debt renews the running of the statute for a second statutory
period.
Illusory Promise - ANSWER-a promise that imposes no real obligation on the
promisor; for example, a promise that is completely up to the free choice or
discretion of the promisor, or which cannot be legally enforced.
Pre-existing Moral Obligation - ANSWER-generally unforceable for lack of
consideration
Complete Answers
Firm Offer - ANSWER-a "merchants's" offer to sell of buy goods in a signed writing
that promises it will not be withdrawn is enforceable for up to three months
Auctions - ANSWER-auctioneer does not make offers to sell the property being
auctioned but invites offers to buy.
Mirror Image Rule - ANSWER-an acceptance can not deviate from the terms of an
offer.
When effective - ANSWER-Revocation- terminates power
rejection- terminates offer
acceptance- forms a contract
Fraud in the inducement - ANSWER-misrepresentation regarding the subject matter
of a contract that induces the other party to enter into the contract; renders the
contract voidable.
Duress - ANSWER-wrongful of unlawful act or threat that overcomes the free will of
a party
Undue Influence - ANSWER-taking unfair advantage of a person by reason of a
dominant position based on a confidential relationship.
Fraudulent vs. Non-Fraudulent Mis Representation - ANSWER-Fraudulent
(Negligent)- made without due care.
Non-Fraudulent (Innocent)- made without knowledge of falsity, with due care.
Fraud in the execution - ANSWER-a misrepresentation that deceives the other party
as to the very nature of the contract; renders the agreement void.
Pre-Existing Contractual Duty - ANSWER-performance of a pre-existing contractual
duty is not not consideration.
Promise to pay debt barred by the statute of limitations - ANSWER-a new promise
by the debtor to pay the debt renews the running of the statute for a second statutory
period.
Illusory Promise - ANSWER-a promise that imposes no real obligation on the
promisor; for example, a promise that is completely up to the free choice or
discretion of the promisor, or which cannot be legally enforced.
Pre-existing Moral Obligation - ANSWER-generally unforceable for lack of
consideration
