LENB 3135 Chapter 10: The Formation of
Traditional and E-Contracts test , Questions and
Answers Verified 100% Correct | Latest Update
What are the four basic elements necessary to the formation of a valid contract? -
✔✔Agreement, Consideration, Contractual Capacity, & Legality
What are the elements necessary for an effective acceptance? - ✔✔Acceptance can consist
of either words or conduct, but must be unequivocal and communicated to the offerer
What is required for Consideration to be legally sufficient? - ✔✔1. Legally sufficient value
(promise to do something one is otherwise not obligated to do), and 2. Bargained-for exchange
(mutually agreed upon)
Does a minor have the capacity to enter into a contract? - ✔✔Yes but the contract is
voidable at the option of the minor
Under what circumstances will courts enforce a covenant not to compete? - ✔✔When a
business sells their store or in employment contracts
Sources of Contract Law - ✔✔Common Law or
Uniform Commercial Code (UCC)
Defenses to the enforceability of a contract - ✔✔-Lacks voluntary consent
-Not in the required form
Requirements of the offer - ✔✔Intent, Definiteness of terms, and Communication to the
offeree
, Termination of the Offer - ✔✔By action of the parties or by Operation of law
Agreements that lack consideration - ✔✔- Preexisting duty
- Past consideration
- Illusory (unenforceable) promises
Intoxication - ✔✔A contract with an intoxicated person is enforceable if the person
understood the legal consequences of entering into the contract - otherwise, the contract is
voided
Mental incompetence - ✔✔A contract made by a person whom a court has previously
determined to be mentally incompetent is void - a contract made by a person with
questionable mental competence can be either valid or voidable
Contracts Contrary to a Statute - ✔✔For a contract to be valid and enforeceable, it must be
formed for a legal purpose
Contracts Contrary to Public Policy - ✔✔Contracts that are contrary to public policy are
unenforceable on the grounds of illegality
Public Policy - ✔✔The principles, often unwritten, on which social laws are based
Online Offers - ✔✔The offer and its terms should be displayed in an easily readable format
and should include some mechanism, such as an "I agree" box, by which the customer can
accept the offer
The Uniform Electronic Transactions Act (UETA) - ✔✔Provides for the validity of e-signatures
Traditional and E-Contracts test , Questions and
Answers Verified 100% Correct | Latest Update
What are the four basic elements necessary to the formation of a valid contract? -
✔✔Agreement, Consideration, Contractual Capacity, & Legality
What are the elements necessary for an effective acceptance? - ✔✔Acceptance can consist
of either words or conduct, but must be unequivocal and communicated to the offerer
What is required for Consideration to be legally sufficient? - ✔✔1. Legally sufficient value
(promise to do something one is otherwise not obligated to do), and 2. Bargained-for exchange
(mutually agreed upon)
Does a minor have the capacity to enter into a contract? - ✔✔Yes but the contract is
voidable at the option of the minor
Under what circumstances will courts enforce a covenant not to compete? - ✔✔When a
business sells their store or in employment contracts
Sources of Contract Law - ✔✔Common Law or
Uniform Commercial Code (UCC)
Defenses to the enforceability of a contract - ✔✔-Lacks voluntary consent
-Not in the required form
Requirements of the offer - ✔✔Intent, Definiteness of terms, and Communication to the
offeree
, Termination of the Offer - ✔✔By action of the parties or by Operation of law
Agreements that lack consideration - ✔✔- Preexisting duty
- Past consideration
- Illusory (unenforceable) promises
Intoxication - ✔✔A contract with an intoxicated person is enforceable if the person
understood the legal consequences of entering into the contract - otherwise, the contract is
voided
Mental incompetence - ✔✔A contract made by a person whom a court has previously
determined to be mentally incompetent is void - a contract made by a person with
questionable mental competence can be either valid or voidable
Contracts Contrary to a Statute - ✔✔For a contract to be valid and enforeceable, it must be
formed for a legal purpose
Contracts Contrary to Public Policy - ✔✔Contracts that are contrary to public policy are
unenforceable on the grounds of illegality
Public Policy - ✔✔The principles, often unwritten, on which social laws are based
Online Offers - ✔✔The offer and its terms should be displayed in an easily readable format
and should include some mechanism, such as an "I agree" box, by which the customer can
accept the offer
The Uniform Electronic Transactions Act (UETA) - ✔✔Provides for the validity of e-signatures
