BUSFIN 3500 LEGAL ENVIRONMENT OF BUSINESS -
FINAL EXAM STUDY GUIDE
Contract - Answers - promise or agreement that law will enforce
Promisor - Answers - party making the promise
Promisee - Answers - Party in which the promise was made
Commission of Uniform State Law (UCC) - Answers - beleived some common law did
not serve the commercial industry the best it could
- wrote new rules based on how how business is usally conducted
Uniform Commerical Code - Answers - Enacted as statute in 50 states
Good - Answers - a tangible commodity capable of being moved from place to place
Intangibles - Answers - things you cannot move, like real estate services, stocks and
bonds
When there is a sale of a good - Answers - UCC applies
Intent to contract - Answers - Would the person whom the promise was made
reasonablu beleive the promisor was serious
The Bargian Theory of Contracts - Answers - -Offer
-exceptance
-consideration
Offer: - Answers - must be distinguieshed from invitations to negotiate
Offeror - Answers - Makes the offer
Offeree - Answers - Given the power to bind the offer by acepting the offer
- offer is not effective unless it is communicated to the offeree
Termination of an offer - Answers - Offers dont last forever
Death of Offorer terminates offer
rejection of offer terminates offer
Most common Method - REVOCATION: direct communication to offeree that offer is
revoked
, Irrevocable offer - Answers - -offer becomes irrevocable if offeror gives value (money) to
offeror to not revoke before expiration date
Acceptance - Answers - Binds offeror and offeree - through words and actions
- cant steal someone elses offer if not the offeree
Mirror Image Rule - Answers - common law says acceptance must mirror the offer
- must be unconditional acceptance and absolute - turns into counter offer if other
parties acceptance chandge parts of contract
Section 2-207 - Answers - provides that a document intended to be acceptance is an
acceptance even if it is has terms different from or in addition to those in the offer
Bilateral Contract - Answers - when both parties agree to terms of a contract like
someone offering to pay someone 100 dollars to paint there house
- both parties have promised to do their part in transaction
Unilateral Contract - Answers - when only one party is obligated to do something
ex. Ill give you 100 dollars if you do a flip, the offeror is obligated to give the 100 dollars
if the act is performed but the fliper is not obligated to do the flipping
Mirror Image Rule - Answers - if offeree starts performance, but prior to completion the
offer trys to revoke the offer, the offeree is protected
-offeror cannot revoke for reasonable time in order to give offeree time to complete
performance
The mail box rule - Answers - a mailed acceptance is effective on its deposit in the
mailbox
- protects offeree from unknown revocations of offer
- when resonable method of delivery is not used acceptance is upon arrival of
acceptance
Consideration - Answers - refers to requirement that a promise be part of a bargaiend
for exchange in order for it to be enforceble
- a legal detriment bargained for and given in exchange for a promis
Example of consideration: - Answers - Ordering Coffee:
Coffee and money exchanged and the detriments each party brings creating
consideration
-seller is assuming duty of making coffee
-buyer gives up rights to 5 dollars for coffee
Lega detriment - Answers - Assuming duty or relinquishing of right
- is echange for promise
FINAL EXAM STUDY GUIDE
Contract - Answers - promise or agreement that law will enforce
Promisor - Answers - party making the promise
Promisee - Answers - Party in which the promise was made
Commission of Uniform State Law (UCC) - Answers - beleived some common law did
not serve the commercial industry the best it could
- wrote new rules based on how how business is usally conducted
Uniform Commerical Code - Answers - Enacted as statute in 50 states
Good - Answers - a tangible commodity capable of being moved from place to place
Intangibles - Answers - things you cannot move, like real estate services, stocks and
bonds
When there is a sale of a good - Answers - UCC applies
Intent to contract - Answers - Would the person whom the promise was made
reasonablu beleive the promisor was serious
The Bargian Theory of Contracts - Answers - -Offer
-exceptance
-consideration
Offer: - Answers - must be distinguieshed from invitations to negotiate
Offeror - Answers - Makes the offer
Offeree - Answers - Given the power to bind the offer by acepting the offer
- offer is not effective unless it is communicated to the offeree
Termination of an offer - Answers - Offers dont last forever
Death of Offorer terminates offer
rejection of offer terminates offer
Most common Method - REVOCATION: direct communication to offeree that offer is
revoked
, Irrevocable offer - Answers - -offer becomes irrevocable if offeror gives value (money) to
offeror to not revoke before expiration date
Acceptance - Answers - Binds offeror and offeree - through words and actions
- cant steal someone elses offer if not the offeree
Mirror Image Rule - Answers - common law says acceptance must mirror the offer
- must be unconditional acceptance and absolute - turns into counter offer if other
parties acceptance chandge parts of contract
Section 2-207 - Answers - provides that a document intended to be acceptance is an
acceptance even if it is has terms different from or in addition to those in the offer
Bilateral Contract - Answers - when both parties agree to terms of a contract like
someone offering to pay someone 100 dollars to paint there house
- both parties have promised to do their part in transaction
Unilateral Contract - Answers - when only one party is obligated to do something
ex. Ill give you 100 dollars if you do a flip, the offeror is obligated to give the 100 dollars
if the act is performed but the fliper is not obligated to do the flipping
Mirror Image Rule - Answers - if offeree starts performance, but prior to completion the
offer trys to revoke the offer, the offeree is protected
-offeror cannot revoke for reasonable time in order to give offeree time to complete
performance
The mail box rule - Answers - a mailed acceptance is effective on its deposit in the
mailbox
- protects offeree from unknown revocations of offer
- when resonable method of delivery is not used acceptance is upon arrival of
acceptance
Consideration - Answers - refers to requirement that a promise be part of a bargaiend
for exchange in order for it to be enforceble
- a legal detriment bargained for and given in exchange for a promis
Example of consideration: - Answers - Ordering Coffee:
Coffee and money exchanged and the detriments each party brings creating
consideration
-seller is assuming duty of making coffee
-buyer gives up rights to 5 dollars for coffee
Lega detriment - Answers - Assuming duty or relinquishing of right
- is echange for promise
