Contract Law Legal Terms Trivia Quiz!

In a contract, the consideration refers to something of value that is exchanged between the parties involved. It can be in the form of money, goods, services, or even a promise to do or not do something. The subject matter of a contract, on the other hand, refers to the specific object or purpose of the contract. Therefore, the consideration and subject matter are two different concepts in a contract, making the given answer false.

The statement is true because price is a crucial element in any contract. It determines the financial terms and obligations of both parties involved. Price is the consideration for the goods, services, or rights being exchanged, and it helps establish the value and fairness of the contract. Without a specified price, a contract may lack clarity and may not be legally enforceable. Therefore, price is indeed an essential term in any contract.

The given statement is incorrect. An obligation is a duty or responsibility that a party is required to fulfill under a contract, regardless of whether they want to or not. It is not necessarily something positive, as it can involve various types of tasks or actions that a party must perform as part of their contractual obligations. Therefore, the correct answer is False.

This statement is true because it states that the injured person is not the breaching party. In legal terms, the breaching party refers to the individual or entity that fails to fulfill their obligations or terms of a contract, agreement, or legal duty. Therefore, if the injured person is not the breaching party, it means that they are not the one who failed to fulfill their obligations or duties, and instead, they are the victim or the party who suffered harm as a result of the breach.

Damages refer to the monetary compensation awarded to a party who has suffered harm or loss as a result of another party's actions or breach of contract. In legal terms, damages can be awarded to compensate for financial losses, such as medical expenses, property damage, or lost wages. It is a common form of remedy in civil lawsuits where the court aims to restore the injured party to the position they were in before the harm occurred. Therefore, the answer "money" is correct as it accurately represents one of the possible forms of damages that can be awarded.

An oral contract refers to a contract that is not in written form. It is an agreement made verbally between parties, without any written documentation. While oral contracts are legally binding in many situations, they can be difficult to enforce since there is no written evidence of the terms and conditions agreed upon.

In a legal context, when a party breaches a contract or commits a wrongful act, a court can award damages to the non-breaching party as a form of financial compensation. Damages are meant to compensate the injured party for any losses or harm suffered due to the breach or wrongful act. This can include reimbursement for actual financial losses, such as lost profits or expenses incurred, as well as compensation for emotional distress or other intangible damages. Therefore, "damages" is the correct answer as it refers to the financial compensation that can be awarded by a court.

Lawyers "file" lawsuits. Filing a lawsuit refers to the act of submitting a legal document to initiate a legal case in a court of law. It is the first step taken by lawyers to officially begin legal proceedings on behalf of their clients. The term "file" in this context specifically refers to the action of submitting the necessary paperwork and documentation to the court, signaling the start of a lawsuit.

The correct answer is "accept." When parties accept a contract, it means they agree to the terms and conditions outlined in the agreement. Acceptance is a crucial step in forming a contract as it indicates the willingness of both parties to be bound by the terms of the contract.