Business Law Exam 2 comprehensive
Questions and Answers with Verified
Solutions
Question 1:
Contract
Answer:
A legally enforceable agreement between two or more people. Example:
You agree to pay someone $50 to clean your apartment. If one person
doesn't follow the agreement ’ the other person can sue.
Question 2:
The 6 Elements of a Valid Contract
Answer:
1. Agreement 2. Offer 3. Acceptance 4. Consideration 5. Contractual
Capacity 6. Legal Object
Question 3:
Agreement
Answer:
Both parties agree to the same terms. Example: You offer to sell a bike
for $100 and the other person agrees.
Question 4:
Offer
Answer:
One person proposes a deal. Example: "I will sell you my laptop for
$400." The person making the offer is the offeror
,Question 5:
Acceptance
Answer:
The other person agrees to the exact offer. Example: "I accept your offer
to buy the laptop for $400." If the person changes the terms, that is not
acceptance — it becomes a new offer.
Question 6:
Consideration
Answer:
Both sides must exchange something of value.
Question 7:
Contractual Capacity
Answer:
The people making the contract must have the legal ability to do so.
People who may lack capacity include: minors mentally incompetent
people sometimes intoxicated people Example: A contract with a young
child may not be enforceable.
Question 8:
Legal Object
Answer:
The contract must be for something legal. Illegal contracts are not
enforceable. Example: A contract to sell illegal drugs is not valid
, Question 9:
Lack of Genuine Assent
Answer:
This means the parties did not truly agree freely. Examples: fraud
misrepresentation duress (threats) mistake Example: Someone lies about
a car's condition to sell it.
Question 10:
Lack of Proper Form
Answer:
Some contracts must be in writing to be enforceable. This rule comes
from something called the Statute of Frauds.
Question 11:
Common Law
Answer:
Applies to services and most contracts. Example: Hiring someone to paint
your house.
Question 12:
Uniform Commercial Code (UCC)
Answer:
Applies to contracts for the sale of goods. Goods = physical movable
items. Examples: selling a car selling furniture selling electronics Not
goods: services real estate ideas
Questions and Answers with Verified
Solutions
Question 1:
Contract
Answer:
A legally enforceable agreement between two or more people. Example:
You agree to pay someone $50 to clean your apartment. If one person
doesn't follow the agreement ’ the other person can sue.
Question 2:
The 6 Elements of a Valid Contract
Answer:
1. Agreement 2. Offer 3. Acceptance 4. Consideration 5. Contractual
Capacity 6. Legal Object
Question 3:
Agreement
Answer:
Both parties agree to the same terms. Example: You offer to sell a bike
for $100 and the other person agrees.
Question 4:
Offer
Answer:
One person proposes a deal. Example: "I will sell you my laptop for
$400." The person making the offer is the offeror
,Question 5:
Acceptance
Answer:
The other person agrees to the exact offer. Example: "I accept your offer
to buy the laptop for $400." If the person changes the terms, that is not
acceptance — it becomes a new offer.
Question 6:
Consideration
Answer:
Both sides must exchange something of value.
Question 7:
Contractual Capacity
Answer:
The people making the contract must have the legal ability to do so.
People who may lack capacity include: minors mentally incompetent
people sometimes intoxicated people Example: A contract with a young
child may not be enforceable.
Question 8:
Legal Object
Answer:
The contract must be for something legal. Illegal contracts are not
enforceable. Example: A contract to sell illegal drugs is not valid
, Question 9:
Lack of Genuine Assent
Answer:
This means the parties did not truly agree freely. Examples: fraud
misrepresentation duress (threats) mistake Example: Someone lies about
a car's condition to sell it.
Question 10:
Lack of Proper Form
Answer:
Some contracts must be in writing to be enforceable. This rule comes
from something called the Statute of Frauds.
Question 11:
Common Law
Answer:
Applies to services and most contracts. Example: Hiring someone to paint
your house.
Question 12:
Uniform Commercial Code (UCC)
Answer:
Applies to contracts for the sale of goods. Goods = physical movable
items. Examples: selling a car selling furniture selling electronics Not
goods: services real estate ideas
