Which of the following is a characteristic of a legally enforceable contract?
It must be written on fancy paper.
It must involve a lawyer.
It must be signed in the presence of a judge.
It must involve an offer, acceptance, consideration, and intention to create legal relations.
#2
What does 'tort' mean in business law?
A type of cake.
A civil wrong that causes someone else to suffer loss or harm.
A type of contract.
A legal document.
#3
What does 'breach of contract' refer to in business law?
When a contract is made stronger.
When a contract is broken by one of the parties without a legal excuse.
When a contract is extended beyond its original terms.
When a contract is terminated by mutual agreement.
#4
What is 'consideration' in contract law?
The action of taking something into account when making a legal decision.
The amount of money involved in a contract.
Something of value exchanged in a contract, typically money or goods or services.
A type of legal defense.
#5
What is 'res ipsa loquitur'?
A Latin term meaning 'the thing speaks for itself,' used in tort law to describe cases where the negligence is presumed because the accident would not have happened without it.
A type of contractual agreement.
A type of business entity.
A legal document.
#6
Which of the following is not a valid defense in a contract dispute?
Duress
Mistake
Consideration
Misrepresentation
#7
What is the 'doctrine of precedent' in legal terms?
A rule of law established in a previous legal case that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts.
A legal document filed in court.
An oral agreement between parties in a court proceeding.
A formal accusation of wrongdoing.
#8
What is 'vicarious liability'?
A type of strict liability.
The liability for the actions of another person.
A type of negligence.
The liability for intentional torts.
#9
What is 'forum selection clause' in a contract?
A clause specifying which court or jurisdiction will decide any disputes arising out of the contract.
A clause specifying the forum where the contract will be signed.
A clause specifying the forum where the contract will be executed.
A clause specifying the forum where the contract will be negotiated.
#10
What is the 'doctrine of consideration'?
A legal doctrine that requires parties to a contract to exchange something of value in order for the contract to be enforceable.
A legal doctrine that applies only to consideration of time.
A legal doctrine that applies only to consideration of money.
A legal doctrine that is irrelevant in contract law.
#11
What is the 'reasonable person standard' often used in negligence cases?
A hypothetical person in society who exercises average care, skill, and judgment in conduct and who serves as a comparative standard for determining liability.
The judge's personal opinion.
The defendant's opinion.
The plaintiff's opinion.
#12
What is 'piercing the corporate veil'?
A type of business formation.
A legal doctrine that allows creditors to reach the personal assets of shareholders in certain circumstances.
A legal defense used in contract disputes.
A type of tort.
#13
What does 'quantum meruit' mean?
A type of intentional tort.
A Latin term meaning 'as much as he deserves,' used in contract law to describe the principle that a party should receive fair compensation for services rendered.
A type of contract termination.
A type of contract modification.
#14
What is 'remedies' in the context of contract law?
The legal requirements for a valid contract.
The consequences imposed on a party who breaches a contract.
The process of resolving a contract dispute through negotiation.
The legal capacity of parties entering into a contract.
#15
What is 'quasi-contract'?
A type of contract that involves illegal activities.
A contract that is implied in law to prevent unjust enrichment.
A contract that is voidable at the option of one party.