Contract Law Terminology Quiz

While a seal or signature can enhance evidence, it's not universally required for a valid contract.

Consideration is the value exchanged between parties in a contract, forming the basis of mutual obligation.

Capacity refers to the mental and legal ability of parties to understand and enter into a contract.

Rescission is the legal act of canceling or annulling a contract, returning parties to their pre-contractual positions.

Duress involves forcing someone to enter a contract through threats, coercion, or undue influence.

Assignment involves transferring rights or obligations from one party to another under a contract.

Quantum meruit refers to the principle of 'as much as deserved,' often used in cases of unjust enrichment.

Anticipatory breach happens when one party clearly indicates they won't fulfill their contractual obligations.

Frustration of purpose allows parties to be released from a contract if its purpose becomes impossible to fulfill.

Liquidated damages are predetermined amounts set in a contract to compensate for specified breaches.

A voidable contract is one that remains valid unless one or both parties choose to void it.

Impossibility of performance occurs when it becomes legally or physically impossible to fulfill a contract.

Consideration requires a benefit or detriment exchanged between parties, forming the basis of a contract.

An offer is a proposal indicating a readiness to enter into a binding agreement under specific terms.

In a unilateral contract, one party undertakes an obligation, often upon the completion of a specific act by the other party.

An invitation to treat is an invitation to negotiate or make an offer, not a binding contract proposal.

Promissory estoppel stops a party from going back on a promise if the other party has reasonably relied on it.

The parol evidence rule limits the consideration of outside evidence that may alter the terms of a written contract.

Mitigation of damages involves taking steps to minimize losses suffered due to a breach of contract.

Specific performance compels parties to fulfill their contractual obligations as stated in the agreement.