FAU BUL 4421 FINAL EXAM STUDY
GUIDE
Contract - Correct Answers -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.
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.
Consideration - Correct Answers -The bargained-for exchange; what each party gets in
exchange for his or her promise under a contract.
What a legal entity receives in return for performing a contract obligation.
Contractual Capacity - Correct Answers -The legal ability to enter into a binding
agreement.
Who does not have Contractual Capacity? - Correct Answers -Those under the age of
majority, people suffering from a mental illness, and sufficiently intoxicated persons
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 is not relevant.
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
(i.e. a promise + a 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 all clearly set forth in
either written or spoken words.
Implied Contract - Correct Answers -Arise not from words but from the conduct of the
parties.
Parol Evidence Rule - Correct Answers -A common law rule which states that oral
evidence of an agreement made prior to or contemporaneously with a written
agreement is inadmissible when the parties intend to have the written agreement be the
complete and final version of their agreement.
, Integrated Contracts - Correct Answers -Written contracts within statute of frauds
intended to be complete and final representation of parties' agreement, thus precluding
the admissibility of parol evidence other than in certain enumerated exceptions.
Void Contract - Correct Answers -Not a contract at all. Either its 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 had the ability to either
withdraw from the contract or enforce it.
Option Contract - Correct Answers -The offeree gives the offeror consideration 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. Revocation is effective when the
offeree receives it.
Rejection - Correct Answers -Another way to terminate the offer, effectuated by the
offeree. Regardless of how long the offer was stated to be open, once the offeree
rejects it, it is termintated.
Counteroffer - Correct Answers -an offer made by an offeree to his offeror relating to the
same matter as the original offer and proposing a substituted bargain differing from that
proposed by the original offer. 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 offer states it will be held open for only a certain
time, it terminates when that time expires.
In the absence of such a time condition, the offer will expire after the lapse of 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. If no mode of communication is specified in the offer, any
reasonable means of acceptance is valid. For a unilateral contract only performance by
the offeree constitutes a valid acceptance.
Types of Consideration - Correct Answers -A benefit to promisee
A detriment to promisor
A promise to do something
GUIDE
Contract - Correct Answers -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.
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.
Consideration - Correct Answers -The bargained-for exchange; what each party gets in
exchange for his or her promise under a contract.
What a legal entity receives in return for performing a contract obligation.
Contractual Capacity - Correct Answers -The legal ability to enter into a binding
agreement.
Who does not have Contractual Capacity? - Correct Answers -Those under the age of
majority, people suffering from a mental illness, and sufficiently intoxicated persons
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 is not relevant.
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
(i.e. a promise + a 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 all clearly set forth in
either written or spoken words.
Implied Contract - Correct Answers -Arise not from words but from the conduct of the
parties.
Parol Evidence Rule - Correct Answers -A common law rule which states that oral
evidence of an agreement made prior to or contemporaneously with a written
agreement is inadmissible when the parties intend to have the written agreement be the
complete and final version of their agreement.
, Integrated Contracts - Correct Answers -Written contracts within statute of frauds
intended to be complete and final representation of parties' agreement, thus precluding
the admissibility of parol evidence other than in certain enumerated exceptions.
Void Contract - Correct Answers -Not a contract at all. Either its 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 had the ability to either
withdraw from the contract or enforce it.
Option Contract - Correct Answers -The offeree gives the offeror consideration 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. Revocation is effective when the
offeree receives it.
Rejection - Correct Answers -Another way to terminate the offer, effectuated by the
offeree. Regardless of how long the offer was stated to be open, once the offeree
rejects it, it is termintated.
Counteroffer - Correct Answers -an offer made by an offeree to his offeror relating to the
same matter as the original offer and proposing a substituted bargain differing from that
proposed by the original offer. 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 offer states it will be held open for only a certain
time, it terminates when that time expires.
In the absence of such a time condition, the offer will expire after the lapse of 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. If no mode of communication is specified in the offer, any
reasonable means of acceptance is valid. For a unilateral contract only performance by
the offeree constitutes a valid acceptance.
Types of Consideration - Correct Answers -A benefit to promisee
A detriment to promisor
A promise to do something
