BUL 4421 final exam Verified Exam Questions and Answers Latest
update 2026/2027
Question:
Contract
Answer:
a promise or set of promises for the breach of which the law gives a remedy or the performance of
which the law in some way recognizes a duty.
Question:
a legally binding contract requires four elements:
Answer:
Agreement consideration capacity
Question:
agreement
Answer:
legal object consists of an offer by one party, called the offeror, to enter into a contract and an
acceptance of the terms of the offer by the other party, called the offeree.
Question:
offeror vs. offeree
Answer:
offeror - party who makes the offer offeree - party to whom the offer is made
Question:
consideration
Answer:
the bargained-for exchange or what each party gets in exchange for his or her promise under the
contract.
- what a legal entity receives in return for performing a contract
obligation
,Question:
contractual capacity
Answer:
the legal ability to enter into a binding agreement Most adults over the age of majority have capacity;
those under the age of majority, people suffering from mental illness, and sufficiently intoxicated
persons do not
Question:
objective theory of contracts
Answer:
we base the existence of a contract on the parties' outward manifestations of intent and we base its
interpretation on how a reasonable person would interpret it The subjective intent of parties is not
usually relevant; what matters is how they represented their intent through their actions and words
Question:
bilateral contract
Answer:
a promise in exchange for a promise. As soon as the promises exchanged, a contract is formed and the
parties' legal obligations arise
Question:
unilateral contract
Answer:
requires performance in order to form a contract (1.e. a promise + a requested action). The offeror
wants the offeree to do something, not promise to do something.
Question:
Express Contract implied contract arise not from words but from the conduct of the parties
Answer:
- only performance by the offeree constitutes a valid acceptance
the terms of the contract are all clearly set forth in either written or spoken words
Question:
quasi contract
Answer:
also called "implied-in-law contracts, but they are not actually contracts. Courts impose contractual
obligations on one of the parties as If a contract existed to prevent one party from being
, Question:
void contract
Answer:
unjustly enriched at the expense of te other party. not a contract at all. Either its object is illegal or it
has some defect so serious it is not a contract.
Question:
voidable contract
Answer:
one or both of the parties has the ability to either withdraw from the contract or enforce it.
Question:
elements of a valid offer
Answer:
1. offer must be communicated to offeree
2. offeror must manifest serious intent to be bound by the
acceptance
3. offer must contain reasonable definite terms
Question:
option contract
Answer:
the offeree gives the offeror consideration in exchange for holding the offer open for a specified
period of time. The offer is irrevocable for that period of time.
Question:
elements of a valid offer:
Answer:
1. Offer must be communicated to offeree
2. Offeror must manifest the intent to be bound by the
acceptance
3. Offer must include all material terms
Question:
revocation
Answer:
the offeror can revoke the offer at any time unless the offeree entered into an option contract with the
offeror. Revocation is effective when the offeree receives it.
update 2026/2027
Question:
Contract
Answer:
a promise or set of promises for the breach of which the law gives a remedy or the performance of
which the law in some way recognizes a duty.
Question:
a legally binding contract requires four elements:
Answer:
Agreement consideration capacity
Question:
agreement
Answer:
legal object consists of an offer by one party, called the offeror, to enter into a contract and an
acceptance of the terms of the offer by the other party, called the offeree.
Question:
offeror vs. offeree
Answer:
offeror - party who makes the offer offeree - party to whom the offer is made
Question:
consideration
Answer:
the bargained-for exchange or what each party gets in exchange for his or her promise under the
contract.
- what a legal entity receives in return for performing a contract
obligation
,Question:
contractual capacity
Answer:
the legal ability to enter into a binding agreement Most adults over the age of majority have capacity;
those under the age of majority, people suffering from mental illness, and sufficiently intoxicated
persons do not
Question:
objective theory of contracts
Answer:
we base the existence of a contract on the parties' outward manifestations of intent and we base its
interpretation on how a reasonable person would interpret it The subjective intent of parties is not
usually relevant; what matters is how they represented their intent through their actions and words
Question:
bilateral contract
Answer:
a promise in exchange for a promise. As soon as the promises exchanged, a contract is formed and the
parties' legal obligations arise
Question:
unilateral contract
Answer:
requires performance in order to form a contract (1.e. a promise + a requested action). The offeror
wants the offeree to do something, not promise to do something.
Question:
Express Contract implied contract arise not from words but from the conduct of the parties
Answer:
- only performance by the offeree constitutes a valid acceptance
the terms of the contract are all clearly set forth in either written or spoken words
Question:
quasi contract
Answer:
also called "implied-in-law contracts, but they are not actually contracts. Courts impose contractual
obligations on one of the parties as If a contract existed to prevent one party from being
, Question:
void contract
Answer:
unjustly enriched at the expense of te other party. not a contract at all. Either its object is illegal or it
has some defect so serious it is not a contract.
Question:
voidable contract
Answer:
one or both of the parties has the ability to either withdraw from the contract or enforce it.
Question:
elements of a valid offer
Answer:
1. offer must be communicated to offeree
2. offeror must manifest serious intent to be bound by the
acceptance
3. offer must contain reasonable definite terms
Question:
option contract
Answer:
the offeree gives the offeror consideration in exchange for holding the offer open for a specified
period of time. The offer is irrevocable for that period of time.
Question:
elements of a valid offer:
Answer:
1. Offer must be communicated to offeree
2. Offeror must manifest the intent to be bound by the
acceptance
3. Offer must include all material terms
Question:
revocation
Answer:
the offeror can revoke the offer at any time unless the offeree entered into an option contract with the
offeror. Revocation is effective when the offeree receives it.
