BLAW 3310 Chapter 10- Contracts
UPDATED ACTUAL Questions and
CORRECT Answers
Contracts - CORRECT ANSWER - A written or spoken agreement, especially one concerning
employment, sales, or tenancy, that is intended to be enforceable by law
Elements of a contract - CORRECT ANSWER - Negotiations-->Offer-->Acceptance(Binding
contract formed upon agreement)-->Parties perform duties(possiible suit of breach of contract if
failure to perform)-->Contract Completed
Offer - CORRECT ANSWER - A promise to do something or to refrain from doing some
specific thing
Acceptance - CORRECT ANSWER - Expression of assent or agreement to the terms of an
offer
Option contract - CORRECT ANSWER - Binding promise to keep an offer open for a
specified period of time
Termination of Offer - CORRECT ANSWER - Offerors can terminate most offers by
withdrawing the offer before it has been accepted by the offeree (this is called a revocation)
Rejection - CORRECT ANSWER - When an offeree rejects the offer
Counter-offer - CORRECT ANSWER - A way of rejecting an Offer (makes you the Offeror
Expiration by its own terms - CORRECT ANSWER - An offer can terminate by lapse of time.
Must be reasonable and relevant to offer. E.g) a stock share offer at a certain price will most
likely expire before your friend's offer to buy his car
, termination by operation of law - CORRECT ANSWER - Usually occurs when a court ruling
makes a contract illegal
Mirror image rule - CORRECT ANSWER - Offeree must accept the contract's key points
(mirror) , or there is no contract
Capacity to contract - CORRECT ANSWER - Legal ability to create a contract. E.g) generally
minors, intoxicated persons, and the mentally disabled have limited capacity to contract
Minority Status - CORRECT ANSWER - Person under the legal age of majority, Under 18.
Minor may enter contracts, but voidable at the option of the minor, unless the turn majority while
contract is in effect
Void/voidable contracts - CORRECT ANSWER - Void contract- A contract that does not
exist at law, and so cannot be enforced
Voidable contract- Is when one party to the contract has the right to avoid a legal obligation. E.g)
If a person is stoned or drunk while getting into a contract, or if there is fraud involved
Ratification - CORRECT ANSWER - May be expressed through word, in writing, or implied
conduct such as continued use of a car. E.g) Army and marriage contracts are nonvoidable
contracts
Legal/unenforceable contracts - CORRECT ANSWER - The contract is legally binding, but
could become void. If there is an injured party involved, the injured party or the defrauded must
take action, otherwise the contract is considered valid. ... Unenforceable Contracts - an
unenforceable contract is a contract which cannot be enforced in a court of law.
Exculpatory contracts - CORRECT ANSWER - Also known as a exculpatory clause, it
releases one party from the consequences brought about by wrongful acts or negligence,
UPDATED ACTUAL Questions and
CORRECT Answers
Contracts - CORRECT ANSWER - A written or spoken agreement, especially one concerning
employment, sales, or tenancy, that is intended to be enforceable by law
Elements of a contract - CORRECT ANSWER - Negotiations-->Offer-->Acceptance(Binding
contract formed upon agreement)-->Parties perform duties(possiible suit of breach of contract if
failure to perform)-->Contract Completed
Offer - CORRECT ANSWER - A promise to do something or to refrain from doing some
specific thing
Acceptance - CORRECT ANSWER - Expression of assent or agreement to the terms of an
offer
Option contract - CORRECT ANSWER - Binding promise to keep an offer open for a
specified period of time
Termination of Offer - CORRECT ANSWER - Offerors can terminate most offers by
withdrawing the offer before it has been accepted by the offeree (this is called a revocation)
Rejection - CORRECT ANSWER - When an offeree rejects the offer
Counter-offer - CORRECT ANSWER - A way of rejecting an Offer (makes you the Offeror
Expiration by its own terms - CORRECT ANSWER - An offer can terminate by lapse of time.
Must be reasonable and relevant to offer. E.g) a stock share offer at a certain price will most
likely expire before your friend's offer to buy his car
, termination by operation of law - CORRECT ANSWER - Usually occurs when a court ruling
makes a contract illegal
Mirror image rule - CORRECT ANSWER - Offeree must accept the contract's key points
(mirror) , or there is no contract
Capacity to contract - CORRECT ANSWER - Legal ability to create a contract. E.g) generally
minors, intoxicated persons, and the mentally disabled have limited capacity to contract
Minority Status - CORRECT ANSWER - Person under the legal age of majority, Under 18.
Minor may enter contracts, but voidable at the option of the minor, unless the turn majority while
contract is in effect
Void/voidable contracts - CORRECT ANSWER - Void contract- A contract that does not
exist at law, and so cannot be enforced
Voidable contract- Is when one party to the contract has the right to avoid a legal obligation. E.g)
If a person is stoned or drunk while getting into a contract, or if there is fraud involved
Ratification - CORRECT ANSWER - May be expressed through word, in writing, or implied
conduct such as continued use of a car. E.g) Army and marriage contracts are nonvoidable
contracts
Legal/unenforceable contracts - CORRECT ANSWER - The contract is legally binding, but
could become void. If there is an injured party involved, the injured party or the defrauded must
take action, otherwise the contract is considered valid. ... Unenforceable Contracts - an
unenforceable contract is a contract which cannot be enforced in a court of law.
Exculpatory contracts - CORRECT ANSWER - Also known as a exculpatory clause, it
releases one party from the consequences brought about by wrongful acts or negligence,
