Legal Principles and Foundations Flashcards

What is the effect of a novation on the original contractual parties?

Answer: It substitutes a new party and releases the original obligor

A novation substitutes a new party for an original one, extinguishing the original party's obligations with the consent of all parties.

Under U.S. tort law, which standard of care applies to a professional when their conduct is evaluated?

Answer: The professional standard of their field

Professionals such as doctors and lawyers are held to the standard of care exercised by a reasonably competent member of their profession.

Which doctrine bars re-litigation of an issue that was actually litigated and necessarily decided in prior proceedings?

Answer: Collateral estoppel

Collateral estoppel (issue preclusion) prevents a party from re-litigating a specific issue that was fully and fairly decided in earlier litigation.

The principle that ambiguous contract language is construed against the party who drafted it is called:

Answer: Contra proferentem

Contra proferentem requires that ambiguous terms in a contract be interpreted against the drafter, incentivizing clear and precise drafting.

Which type of jurisdiction allows a court to hear a case involving a particular subject matter, regardless of where the parties are located?

Answer: Subject matter jurisdiction

Subject matter jurisdiction refers to a court's authority to hear cases involving a specific type of legal issue or claim, such as bankruptcy or patent law.

A contract that appears valid on its face but can be voided at the option of one party is termed:

Answer: Voidable

A voidable contract is one that one party may elect to affirm or rescind, such as contracts entered into by minors or under duress.

In agency law, which type of authority is created by the principal's words or conduct communicated directly to the agent?

Answer: Express authority

Express authority is explicitly granted by the principal to the agent through direct communication, such as instructions in an agreement or oral direction.