Exam 5: An Introduction to Contracts

The principle of equality of bargaining power follows the rationale that parties should be able to rely on contractual commitments.

When asked to determine a matter involving a dispute between parties regarding the formation of a contract,a court will apply a specific test.Which of the following is the defining characteristic of that test?

Fatima needed to copy and bind five sets of legal submissions with beige covers,but none were left in the supply cabinet.The office manager offered to reimburse Fatima for the cost of the covers and buy her lunch from petty cash if she would dash to the nearby office supply store to buy them.Fatima agreed.What is the nature of the arrangement negotiated between Fatima and the office manager?

In most instances,the rules governing contractual disputes are based on the common law.

Vivian is the head of the risk management division of a large retail company entering negotiations to hopefully establish a long-term business relationship with a successful importer.When choosing her negotiating team,which of the following recommendations could Vivian reasonably be expected to suggest as criteria for that selection?

The object of creating contractual obligations is to reduce the risk of uncertainty in the business relationship.

Which of the following has the greatest influence on creating the flexible relationship that exists between contract law and economic reality?

A business should always insist on strict observance and enforcement of its legal rights.

If someone has suffered a legal wrong,he or she should automatically sue the wrongdoer.

With respect to the relationship that exists between contractual parties,which of the following is synonymous with the term "meeting of the minds"?

In a strictly legal sense,which of the following is synonymous with the reasonable person test?

During contractual negotiations,which of the following would be considered to have the most influence on the negotiators' statements made during those discussions?

Which of the following is a defining characteristic of the principle of equality of bargaining power?

Individuals who negotiate a contract on behalf of their employer are bound to the contract along with their employer.

Identify and briefly explain the legal rules that apply to a commercial relationship between a for-profit figure skating club and the skating instructors it has contractually hired for the current fiscal year.Identify the methods available to these parties for resolving disputes that may arise,including which method is the least expensive and which is recommended as a last resort and the procedure that method entails.

With regard to matters concerning contractual business relationships,which of the following is applicable to an economic breach of contract?

Explain the notion of equality of bargaining power and its impact on the operation of contract law.

Mat purchased a car for his son from an auto dealership.A week later,his son discovered a defect that rendered the car unsafe.The defect is one that a court would consider to be a breach of contract.Which of the following represents the legal recourse available to remedy this problem?

Identify and briefly describe the necessary elements that must be present in order for a court to recognize a contract as a legally binding agreement.

In order for a court to be convinced that both parties deliberately entered into a contractual relationship there must be evidence of their intention to create legal relations.