BUS 250 FINAL EXAM VERIFIED STUDY GUIDE
Contract - Answers - A written or spoken agreement between private parties creating
mutual obligations enforceable by law
Elements of Contract - Answers - offer
acceptance
consideration
6 Elements of a Contract - Answers - -Need 2 or more parties
-Consideration
-An agreement that is sufficiently definite
-Parties with legal capacity to make a contract
-Mutual assent
-No legal prohibition precluding contraction formation
Revocation of an Offer - Answers - the withdrawal of a previous offer to engage in some
sort of legally binding contract.
Fact Pattern: I made an offer & no one accepts it - Answers - Can revoke the contract
Fact Pattern: If an offer is made & accepted - Answers - Can NOT revoke the contract
Methods of acceptance - Answers - A contract is formed when an offeree accepts for a
valid offer
"I'll pay $40 for mowing grass"
You mow the grass. - Answers - Offer by acceptance
Types of Consideration - Answers - -money
-forbearance
-a return promise
Most common type of consideration - Answers - money
Past Consideration - Answers - Not a consideration
-where there is an unambiguous written obligation based on appreciation of past
services, the obligation may be enforced by the courts
Someone saves your life and you promise to give you everything they have. Later on,
the person tries to enforce it but it can't be enforced unless if WRITTEN. - Answers -
past consideration example
, Counteroffers - Answers - when the original offer of a contract is not accepted and a
new offer is returned in the original offers place; void or nullifies the original offer; may
be accepted, rejected or modified by the party that made the original offer
"No, I want it for cheaper"
"Wait, nevermind I will pay $700"
You can not go back and now accept the offer after suggesting a counter offer. -
Answers - example of counteroffer
Oral contracts - Answers - Enforceable under MS law unless the contract falls within MS
Statue's of Fraud.
Statue of frauds - Answers - require contracting parties to reduce to writing specific
terms which is better for specific contracts.
-Main ones: agreements can't be performed within 15 months
Ex. 2 year agreement with 15+ work; must be signed - Answers - Statue of frauds
example
Ex.Will not start until after the 15+ period - Answers - Statue of frauds example
Ex. Starts at month 10 but will not be finished within the 15 month period - Answers -
Statue of frauds example
Ex. if for some how they have Unlimited resources and it should take longer but it is
completed before 15 months then it doesn not have to be written - Answers - Statue of
frauds example
Ex. Leases are longer than a year - Answers - Statue of frauds example
interpreting Contracts - Answers - Take contract, read, and do what it says from your
plain meaning and understanding
4 corners of the contract
If it is ambiguous, we can not figure out what it is telling us to do
Ambiguity - Answers - Not clear enough to understand actions needed to take place
Rules of Ambiguity - Answers - Step one: what does the contract say
Step two: exception 1
step three: exception 2
What does contract say? - Answers - In interpreting contracts, the court's primary
purpose is to determine the intent of the contracting parties.
-The best evidence of the parties' intent is the language used in the contract
- Absent ambiguity, the contract will be enforced according to the word's plain meaning
without resort to parol or extrinsic evidence
Contract - Answers - A written or spoken agreement between private parties creating
mutual obligations enforceable by law
Elements of Contract - Answers - offer
acceptance
consideration
6 Elements of a Contract - Answers - -Need 2 or more parties
-Consideration
-An agreement that is sufficiently definite
-Parties with legal capacity to make a contract
-Mutual assent
-No legal prohibition precluding contraction formation
Revocation of an Offer - Answers - the withdrawal of a previous offer to engage in some
sort of legally binding contract.
Fact Pattern: I made an offer & no one accepts it - Answers - Can revoke the contract
Fact Pattern: If an offer is made & accepted - Answers - Can NOT revoke the contract
Methods of acceptance - Answers - A contract is formed when an offeree accepts for a
valid offer
"I'll pay $40 for mowing grass"
You mow the grass. - Answers - Offer by acceptance
Types of Consideration - Answers - -money
-forbearance
-a return promise
Most common type of consideration - Answers - money
Past Consideration - Answers - Not a consideration
-where there is an unambiguous written obligation based on appreciation of past
services, the obligation may be enforced by the courts
Someone saves your life and you promise to give you everything they have. Later on,
the person tries to enforce it but it can't be enforced unless if WRITTEN. - Answers -
past consideration example
, Counteroffers - Answers - when the original offer of a contract is not accepted and a
new offer is returned in the original offers place; void or nullifies the original offer; may
be accepted, rejected or modified by the party that made the original offer
"No, I want it for cheaper"
"Wait, nevermind I will pay $700"
You can not go back and now accept the offer after suggesting a counter offer. -
Answers - example of counteroffer
Oral contracts - Answers - Enforceable under MS law unless the contract falls within MS
Statue's of Fraud.
Statue of frauds - Answers - require contracting parties to reduce to writing specific
terms which is better for specific contracts.
-Main ones: agreements can't be performed within 15 months
Ex. 2 year agreement with 15+ work; must be signed - Answers - Statue of frauds
example
Ex.Will not start until after the 15+ period - Answers - Statue of frauds example
Ex. Starts at month 10 but will not be finished within the 15 month period - Answers -
Statue of frauds example
Ex. if for some how they have Unlimited resources and it should take longer but it is
completed before 15 months then it doesn not have to be written - Answers - Statue of
frauds example
Ex. Leases are longer than a year - Answers - Statue of frauds example
interpreting Contracts - Answers - Take contract, read, and do what it says from your
plain meaning and understanding
4 corners of the contract
If it is ambiguous, we can not figure out what it is telling us to do
Ambiguity - Answers - Not clear enough to understand actions needed to take place
Rules of Ambiguity - Answers - Step one: what does the contract say
Step two: exception 1
step three: exception 2
What does contract say? - Answers - In interpreting contracts, the court's primary
purpose is to determine the intent of the contracting parties.
-The best evidence of the parties' intent is the language used in the contract
- Absent ambiguity, the contract will be enforced according to the word's plain meaning
without resort to parol or extrinsic evidence
