MGMT 246 EXAM #2 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Unilateral Contract
Answer:
Contract based on one party's making a promise that calls for action. Ex: (Only one promise, Eg: Prof.
Smith promising 6 hours of work for $100.)
Question:
2. Bilateral Contract
Answer:
Contract based on both parties making promises to each other.
Question:
3. Express Contract
Answer:
Contract is communicated in writing, orally, or both.
Question:
4. Implied Contract
Answer:
No express contract but parties' actions/relationship supports avoiding unjust enrichment.
Question:
5. Unjust Enrichment
Answer:
Someone benefited unfairly. Ex: Landscapers go to the wrong house, but owner of the house had the
opportunity to correct the mistake.
Question:
6. Valid Contract
Answer:
Contract that is enforceable in court.
Question:
7. Voidable Contract
Answer:
One party can disavow contract under certain circumstances. (Usually if someone has a long term of
temporary disability) Ex: Concussion, mental disability, intoxication.
Question:
8. Void Contract
, Answer:
Unenforceable in court due to illegal purpose. Ex: Recreational marijuana contract in California. (Case
10.2 on pages 221 - 22).
Question:
9. Executory Contract
Answer:
Contact is not yet fully performed. (Ex: Anything between 0% - 99.9% performed)
Question:
10. Executed Contract
Answer:
Contract has been fully performed.
Question:
11. Written Contract
Answer:
Contract is in writing (recommended)
Question:
12. Oral Contract
Answer:
Contract made orally (more often than not just as valid as written contract, some enforcement problems.)
Ex: Most retail jobs are contracted orally; however not as detailed as written contract.
Question:
13. Electronic Contract
Answer:
Contract made electronically. (Given same status as written contract) Ex: Shopping online.
Question:
14. Offeror/promisor
Answer:
Party who makes an offer.
Question:
15. Offeree/promisee
Answer:
Party(ies) who are recipient(s) of offer.
Question:
16. Elements of a Contract
CORRECT ANSWERS
Question:
1. Unilateral Contract
Answer:
Contract based on one party's making a promise that calls for action. Ex: (Only one promise, Eg: Prof.
Smith promising 6 hours of work for $100.)
Question:
2. Bilateral Contract
Answer:
Contract based on both parties making promises to each other.
Question:
3. Express Contract
Answer:
Contract is communicated in writing, orally, or both.
Question:
4. Implied Contract
Answer:
No express contract but parties' actions/relationship supports avoiding unjust enrichment.
Question:
5. Unjust Enrichment
Answer:
Someone benefited unfairly. Ex: Landscapers go to the wrong house, but owner of the house had the
opportunity to correct the mistake.
Question:
6. Valid Contract
Answer:
Contract that is enforceable in court.
Question:
7. Voidable Contract
Answer:
One party can disavow contract under certain circumstances. (Usually if someone has a long term of
temporary disability) Ex: Concussion, mental disability, intoxication.
Question:
8. Void Contract
, Answer:
Unenforceable in court due to illegal purpose. Ex: Recreational marijuana contract in California. (Case
10.2 on pages 221 - 22).
Question:
9. Executory Contract
Answer:
Contact is not yet fully performed. (Ex: Anything between 0% - 99.9% performed)
Question:
10. Executed Contract
Answer:
Contract has been fully performed.
Question:
11. Written Contract
Answer:
Contract is in writing (recommended)
Question:
12. Oral Contract
Answer:
Contract made orally (more often than not just as valid as written contract, some enforcement problems.)
Ex: Most retail jobs are contracted orally; however not as detailed as written contract.
Question:
13. Electronic Contract
Answer:
Contract made electronically. (Given same status as written contract) Ex: Shopping online.
Question:
14. Offeror/promisor
Answer:
Party who makes an offer.
Question:
15. Offeree/promisee
Answer:
Party(ies) who are recipient(s) of offer.
Question:
16. Elements of a Contract
