BUL-4422 FINAL EXAM EXAM QUESTIONS
AND ANSWERS
Contract - Correct Answers -A promise or a set of promises for the breach of which the
law gives a remedy, or the performance of which the law in some way recognizes as a
duty.
Consideration - Correct Answers -The bargained-for-exchange or what each party gets
in exchange for his or her promise under the contract
Agreement - Correct Answers -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
Contractual Capacity - Correct Answers -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 intoxicated persons may not
Legal object - Correct Answers -The contract must have legality of purpose. Contract's
purpose must be to accomplish some goal that is legal
1. Agreement
2. Consideration
3. Contractual Capacity
4. Legality
If anything is missing there is NO contract - Correct Answers -4 Elements of a contract
Objective Theory of Contracts - Correct Answers -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
- Subjective intent not relevant
- What matters is how they represented their intent through their actions and words
Bilateral contract - Correct Answers -A promise in exchange for a promise
As soon as the promises exchanged, a contract is formed and the parties legal
obligations arise.
Unilateral Contract - Correct Answers -Requires performance in order to form a contract
(promise + requested action). The offeror wants the offeree to do something, not
promise to do something
, Express Contract - Correct Answers -The terms of the contract are clearly set forth in
either written or spoken words
Implied Contract - Correct Answers -Arise not from words but from the conduct of the
parties
Void contract - Correct Answers -Not a contract at all.
Either it's object is illegal or it has some defect so serious it is not a contract.
Voidable Contract - Correct Answers -One or both of the parties has the ability to either
withdraw from the contract or enforce it.
Option Contract - Correct Answers -The offeree gives the offeror a piece of
consideration (money) in exchange for holding the offer open for a specified period of
time
Revocation - Correct Answers -The offeror can revoke the offer at any time unless the
offeree entered into an option contract with the offeror.
-Effective when the offeree receives it
Rejection - Correct Answers -Another way to terminate the offer, effectuated by the
offeree. Regardless of how long the offeror was stated to be open, once the offeree
rejects it, it is terminated.
Counteroffer - Correct Answers -An offer made by an offeree to his offeror relating to
the same matter as the original and proposing a substituted bargain differing from that
proposed in the original offer
- A counteroffer terminates the original offer
Destruction or subsequent illegality of the subject matter - Correct Answers -If the
subject matter of the offer is destroyed or becomes illegal, the offer immediately
terminates
Lapse of time - Correct Answers -If the offeror states it will be held open for only a
certain time, it terminates when that time expires
- if there is no time constraint on the offer then when does it expires? It expires after a
reasonable amount of time
Authorized Means of Acceptance - Correct Answers -If the offer specifies that
acceptance must be communicated by a specific mode, that mode is the only means for
accepting the offer.
AND ANSWERS
Contract - Correct Answers -A promise or a set of promises for the breach of which the
law gives a remedy, or the performance of which the law in some way recognizes as a
duty.
Consideration - Correct Answers -The bargained-for-exchange or what each party gets
in exchange for his or her promise under the contract
Agreement - Correct Answers -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
Contractual Capacity - Correct Answers -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 intoxicated persons may not
Legal object - Correct Answers -The contract must have legality of purpose. Contract's
purpose must be to accomplish some goal that is legal
1. Agreement
2. Consideration
3. Contractual Capacity
4. Legality
If anything is missing there is NO contract - Correct Answers -4 Elements of a contract
Objective Theory of Contracts - Correct Answers -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
- Subjective intent not relevant
- What matters is how they represented their intent through their actions and words
Bilateral contract - Correct Answers -A promise in exchange for a promise
As soon as the promises exchanged, a contract is formed and the parties legal
obligations arise.
Unilateral Contract - Correct Answers -Requires performance in order to form a contract
(promise + requested action). The offeror wants the offeree to do something, not
promise to do something
, Express Contract - Correct Answers -The terms of the contract are clearly set forth in
either written or spoken words
Implied Contract - Correct Answers -Arise not from words but from the conduct of the
parties
Void contract - Correct Answers -Not a contract at all.
Either it's object is illegal or it has some defect so serious it is not a contract.
Voidable Contract - Correct Answers -One or both of the parties has the ability to either
withdraw from the contract or enforce it.
Option Contract - Correct Answers -The offeree gives the offeror a piece of
consideration (money) in exchange for holding the offer open for a specified period of
time
Revocation - Correct Answers -The offeror can revoke the offer at any time unless the
offeree entered into an option contract with the offeror.
-Effective when the offeree receives it
Rejection - Correct Answers -Another way to terminate the offer, effectuated by the
offeree. Regardless of how long the offeror was stated to be open, once the offeree
rejects it, it is terminated.
Counteroffer - Correct Answers -An offer made by an offeree to his offeror relating to
the same matter as the original and proposing a substituted bargain differing from that
proposed in the original offer
- A counteroffer terminates the original offer
Destruction or subsequent illegality of the subject matter - Correct Answers -If the
subject matter of the offer is destroyed or becomes illegal, the offer immediately
terminates
Lapse of time - Correct Answers -If the offeror states it will be held open for only a
certain time, it terminates when that time expires
- if there is no time constraint on the offer then when does it expires? It expires after a
reasonable amount of time
Authorized Means of Acceptance - Correct Answers -If the offer specifies that
acceptance must be communicated by a specific mode, that mode is the only means for
accepting the offer.
