Exam 7: The Essentials of Contract Law

Equitable remedies are those that are imposed by the courts on innocent parties to prevent them from taking advantage of the breach by deliberately raising the amount of damages that the other party has to pay.

Clark promises to pay Mike $30 if Mike will mow Clark's yard. This is an example of a bilateral contract.

Vivian, Ewell's friend, believes that Ewell's contract with Mickey is unfair to Ewell. Even though Vivian does not have any tangible stake in the contract, she may sue since she has privity due to her interest in Ewell.

Kayla provides consideration when she gives up her right to sue in exchange for a settlement payment.

Pumping gas into a car at a self-service gas station would be an example of an implied-in-law contract.

A(n) ____________ cannot be upheld by a court of law, although it may have all the elements of complete contract.

Mark was speeding on the highway when he and John had a car accident and suffered serious head injuries. As a result, John's memory was affected, and he could not remember any of the incidents on the day of the crash, including the fact that Mark's rash driving caused the car crash. At the hospital, Mark, who suffered minor injuries, convinces John that the crash was no one's fault and just bad luck. John is empathetic and signs a contract with Mark stating that neither party would sue the other for damages. However, Lily, who was with John in the car and was also injured, knows that Mark was responsible and challenges the contract in court, in addition to filing a lawsuit against Mark. Analyze the case.

Capitalism is a complex, adaptive system of overlapping economic agents that operates on the basis of competition and a free market that responds to the movement of supply and demand.

A(n) ____________ contract does not exist, but is imposed by the court as an equitable remedy in the interests of fairness and justice.

Ruben promises to pay Talana $200 if she steals Jessica's business law textbook. Talana steals the business law book, but Ruben, who now feels guilty for his act, refuses to pay Talana and asks her to return the book. Discuss ways in which Reuben has breached the contract.

An informal contract is also known as a(n):