#1
Which of the following is a characteristic of a legally enforceable contract?
It must involve an offer, acceptance, consideration, and intention to create legal relations.
ExplanationEssential elements for a contract to be legally binding.
#2
What does 'tort' mean in business law?
A civil wrong that causes someone else to suffer loss or harm.
ExplanationCivil wrongdoing resulting in harm or loss.
#3
What does 'breach of contract' refer to in business law?
When a contract is broken by one of the parties without a legal excuse.
ExplanationFailure to fulfill contractual obligations.
#4
What is 'consideration' in contract law?
Something of value exchanged in a contract, typically money or goods or services.
ExplanationExchange of value in a contract.
#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.
ExplanationPresumption of negligence from circumstances.
#6
Which of the following is not a valid defense in a contract dispute?
Consideration
ExplanationNot a defense in contract disputes.
#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.
ExplanationLegal principle relying on past cases for decision-making.
#8
What is 'vicarious liability'?
The liability for the actions of another person.
ExplanationResponsibility for another's actions.
#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.
ExplanationDetermines where legal disputes are resolved.
#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.
ExplanationNecessity of value exchange for contract validity.
#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.
ExplanationBenchmark for determining negligence.
#12
What is 'piercing the corporate veil'?
A legal doctrine that allows creditors to reach the personal assets of shareholders in certain circumstances.
ExplanationLegal principle exposing shareholders' assets.
#13
What does 'quantum meruit' mean?
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.
ExplanationFair compensation principle in contracts.
#14
What is 'remedies' in the context of contract law?
The consequences imposed on a party who breaches a contract.
ExplanationConsequences for contract breaches.
#15
What is 'quasi-contract'?
A contract that is implied in law to prevent unjust enrichment.
ExplanationImplied contract to prevent unfair gain.