Legal 2700 Exam 2 UGA UPDATED ACTUAL Questions and
CORRECT Answers
Contract A legally enforceable promise or set of promises for which the law provides a
remedy.
Sources of Contract Law Contracts are governed by common law for services and by Article 2 of the
Uniform Commercial Code (UCC) for the sale of goods.
Bilateral Contract A contract formed by an exchange of mutual promises; both parties are bound to
perform.
Unilateral Contract A contract in which only one party makes a promise that is accepted by
performance.
Express Contract A contract in which the parties explicitly state the terms of their agreement.
Implied-in-Fact Contract A contract created by the conduct of the parties rather than by written or spoken
words.
Implied-in-Law (Quasi) Contract An obligation imposed by law to prevent unjust enrichment, even when no actual
contract exists.
Void Contract An agreement lacking legal effect because it involves an unlawful act or lacks an
essential element.
Voidable Contract A valid contract that may be legally avoided by one party, such as a minor or
someone under duress.
Unenforceable Contract A contract that cannot be enforced because of a legal defense, such as failure to
comply with a statute of frauds.
Executed Contract A contract in which all parties have fully performed their obligations.
Executory Contract A contract that has not yet been fully performed by one or more parties.
Offer A definite proposal by one party showing intent to enter into a contract and
inviting acceptance.
Elements of an Offer Intent, definite terms, and communication to the offeree.
Termination of Offer An offer ends by revocation, rejection, counteroffer, lapse of time, or operation of
law (subject matter destruction, illegality, death, or insanity).
Acceptance An unqualified assent to the terms of an offer, creating a binding contract.
, Mirror Image Rule Acceptance must exactly match the offer's terms; any variation is a counteroffer.
UCC Battle of the Forms Under UCC § 2-207, a definite acceptance can create a contract even if additional
or different terms are present.
Mailbox Rule An acceptance is effective when dispatched, not when received by the offeror.
Silence as Acceptance Generally not acceptance unless the offeree intends it or the prior course of
dealing justifies it.
Consideration The bargained-for exchange of something of legal value between the parties.
Agreement Not to Sue A promise to refrain from legal action can serve as valid consideration.
Preexisting Obligation A promise to do what one already has a legal duty to do is not valid
consideration.
Past Consideration A promise based on a past act is not enforceable because the act was not
bargained for.
Promise to Make a Gift A gratuitous promise lacking consideration is not legally enforceable.
Option Contract A separate agreement in which the offeror is paid to keep an offer open for a set
period of time.
Promissory Estoppel A promise enforced without consideration when reliance was foreseeable and
caused detriment to the promisee.
Capacity to Contract The legal ability to enter into a binding agreement; lacking for minors, intoxicated,
or mentally incompetent persons.
Legality of Purpose The subject matter must be lawful and not contrary to public policy.
Illegal Contracts Agreements involving crimes, torts, or restraint of trade are void.
Non-Compete Agreements Contracts restricting competition must be reasonable in time, geography, and
scope to be enforceable.
Contract Formality Contracts may be oral unless a writing is required by law (such as the Statute of
Frauds).
Statute of Frauds Requires certain contracts to be in writing to be enforceable (e.g., land, goods
over $500, contracts over one year).
Exceptions to Statute of Frauds Part performance, admission in court, and special manufacture of goods.
Meeting of the Minds Mutual understanding and agreement on the essential terms of a contract.
CORRECT Answers
Contract A legally enforceable promise or set of promises for which the law provides a
remedy.
Sources of Contract Law Contracts are governed by common law for services and by Article 2 of the
Uniform Commercial Code (UCC) for the sale of goods.
Bilateral Contract A contract formed by an exchange of mutual promises; both parties are bound to
perform.
Unilateral Contract A contract in which only one party makes a promise that is accepted by
performance.
Express Contract A contract in which the parties explicitly state the terms of their agreement.
Implied-in-Fact Contract A contract created by the conduct of the parties rather than by written or spoken
words.
Implied-in-Law (Quasi) Contract An obligation imposed by law to prevent unjust enrichment, even when no actual
contract exists.
Void Contract An agreement lacking legal effect because it involves an unlawful act or lacks an
essential element.
Voidable Contract A valid contract that may be legally avoided by one party, such as a minor or
someone under duress.
Unenforceable Contract A contract that cannot be enforced because of a legal defense, such as failure to
comply with a statute of frauds.
Executed Contract A contract in which all parties have fully performed their obligations.
Executory Contract A contract that has not yet been fully performed by one or more parties.
Offer A definite proposal by one party showing intent to enter into a contract and
inviting acceptance.
Elements of an Offer Intent, definite terms, and communication to the offeree.
Termination of Offer An offer ends by revocation, rejection, counteroffer, lapse of time, or operation of
law (subject matter destruction, illegality, death, or insanity).
Acceptance An unqualified assent to the terms of an offer, creating a binding contract.
, Mirror Image Rule Acceptance must exactly match the offer's terms; any variation is a counteroffer.
UCC Battle of the Forms Under UCC § 2-207, a definite acceptance can create a contract even if additional
or different terms are present.
Mailbox Rule An acceptance is effective when dispatched, not when received by the offeror.
Silence as Acceptance Generally not acceptance unless the offeree intends it or the prior course of
dealing justifies it.
Consideration The bargained-for exchange of something of legal value between the parties.
Agreement Not to Sue A promise to refrain from legal action can serve as valid consideration.
Preexisting Obligation A promise to do what one already has a legal duty to do is not valid
consideration.
Past Consideration A promise based on a past act is not enforceable because the act was not
bargained for.
Promise to Make a Gift A gratuitous promise lacking consideration is not legally enforceable.
Option Contract A separate agreement in which the offeror is paid to keep an offer open for a set
period of time.
Promissory Estoppel A promise enforced without consideration when reliance was foreseeable and
caused detriment to the promisee.
Capacity to Contract The legal ability to enter into a binding agreement; lacking for minors, intoxicated,
or mentally incompetent persons.
Legality of Purpose The subject matter must be lawful and not contrary to public policy.
Illegal Contracts Agreements involving crimes, torts, or restraint of trade are void.
Non-Compete Agreements Contracts restricting competition must be reasonable in time, geography, and
scope to be enforceable.
Contract Formality Contracts may be oral unless a writing is required by law (such as the Statute of
Frauds).
Statute of Frauds Requires certain contracts to be in writing to be enforceable (e.g., land, goods
over $500, contracts over one year).
Exceptions to Statute of Frauds Part performance, admission in court, and special manufacture of goods.
Meeting of the Minds Mutual understanding and agreement on the essential terms of a contract.
