1 | P a g e | © copyright 2024/2025 | Grade A+
Bule GMU Exam 3 Study Guide
Questions and Correct Verified
Answers Latest Version
contract law
✓ must provide rules to determine which contract terms will be enforced
and which promises must be kept. It shows what kinds of promises our
society thinks should be legally binding. Also demonstrates which
excuses our society expects for breaking certain types of promises.
Common Law
✓ Governs all contracts except when it has been modified or replaced
by statutory law such as the UCC or administrative agency regulations.
Uniform commercial Code (UCC)
✓ Governs contracts for the sale and lease of goods.
contract
✓ A set of promises constituting an agreement between parties, giving
each a legal duty to the other and also the right to seek a remedy for
the breach of the promises or duties.
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
Objective Theory of Contracts
✓ The view that contracting parties shall only be bound by terms that can
objectively be inferred by promises made.
✓ Objective facts include:
✓ 1.What the party said when entering the contract
✓ 2.How the party acted or appeared
✓ 3. The circumstances surrounding the transaction
Elements of a Valid Contract
✓ 1.Agreement--An agreement to form a contract includes an offer and
an acceptance.
✓ 2.Consideration--Any promises made by the parties to the contract
must be supported by legally sufficient and bargained for
consideration (something of value received or promised, such as
money, to convince a person to make a deal.)
✓ 3.Contractual capacity---both parties entering into the contract must
have the contractual capacity to do so. the law must recognize them
as possessing characteristics that qualify them as competent parties
✓ 4.Legality-- the contracts purpose must be to accomplish some goal
that is legal and not against public policy.
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
Defenses to the enforceability of a contract
✓ 1.Voluntary consent---the consent of both parties must be voluntary, for
instance if a contract was formed as a result of fraud, undue influence,
mistake, or duress, the contract may not be enforceable
✓
✓ 2.Form---the contract must be in whatever form the law requires. some
contracts must be in writing to be enforceable
Offeror
✓ The party making the offer.
Offeree
✓ The party to whom the offer is made.
Bilateral Contract
✓ A type of contract that arises when a promise is given in exchange for
a return promise. Acceptance must be timely.
Unilateral Contract
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
✓ A contract that results when an offer can be accepted only by the
offeree's performance.
Formal Contract
✓ An agreement that by law requires specific form for its validility.
Informal Contract
✓ A contract that does not require a specific form or method of creation
to be valid.
Valid Contract
✓ A contract that results when the elements necessary for contract
formation are present.
Voidable Contract
✓ A valid contract rendered unenforceable by some statute or law.
Void Contract
✓ A contract having no legal force or binding effect.
Agreement
Master01 | September, 2024/2025 | Latest update
Bule GMU Exam 3 Study Guide
Questions and Correct Verified
Answers Latest Version
contract law
✓ must provide rules to determine which contract terms will be enforced
and which promises must be kept. It shows what kinds of promises our
society thinks should be legally binding. Also demonstrates which
excuses our society expects for breaking certain types of promises.
Common Law
✓ Governs all contracts except when it has been modified or replaced
by statutory law such as the UCC or administrative agency regulations.
Uniform commercial Code (UCC)
✓ Governs contracts for the sale and lease of goods.
contract
✓ A set of promises constituting an agreement between parties, giving
each a legal duty to the other and also the right to seek a remedy for
the breach of the promises or duties.
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
Objective Theory of Contracts
✓ The view that contracting parties shall only be bound by terms that can
objectively be inferred by promises made.
✓ Objective facts include:
✓ 1.What the party said when entering the contract
✓ 2.How the party acted or appeared
✓ 3. The circumstances surrounding the transaction
Elements of a Valid Contract
✓ 1.Agreement--An agreement to form a contract includes an offer and
an acceptance.
✓ 2.Consideration--Any promises made by the parties to the contract
must be supported by legally sufficient and bargained for
consideration (something of value received or promised, such as
money, to convince a person to make a deal.)
✓ 3.Contractual capacity---both parties entering into the contract must
have the contractual capacity to do so. the law must recognize them
as possessing characteristics that qualify them as competent parties
✓ 4.Legality-- the contracts purpose must be to accomplish some goal
that is legal and not against public policy.
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
Defenses to the enforceability of a contract
✓ 1.Voluntary consent---the consent of both parties must be voluntary, for
instance if a contract was formed as a result of fraud, undue influence,
mistake, or duress, the contract may not be enforceable
✓
✓ 2.Form---the contract must be in whatever form the law requires. some
contracts must be in writing to be enforceable
Offeror
✓ The party making the offer.
Offeree
✓ The party to whom the offer is made.
Bilateral Contract
✓ A type of contract that arises when a promise is given in exchange for
a return promise. Acceptance must be timely.
Unilateral Contract
Master01 | September, 2024/2025 | Latest update
, 1 | P a g e | © copyright 2024/2025 | Grade A+
✓ A contract that results when an offer can be accepted only by the
offeree's performance.
Formal Contract
✓ An agreement that by law requires specific form for its validility.
Informal Contract
✓ A contract that does not require a specific form or method of creation
to be valid.
Valid Contract
✓ A contract that results when the elements necessary for contract
formation are present.
Voidable Contract
✓ A valid contract rendered unenforceable by some statute or law.
Void Contract
✓ A contract having no legal force or binding effect.
Agreement
Master01 | September, 2024/2025 | Latest update
