BLAW 341 Exam 2- Maull Questions and
Answers 100% Solved | Graded A+
Chapter 10 - ✔✔
Contract - ✔✔A set of promises constituting an agreement between parties,
giving each a legal duty to the other and the right to seek a remedy for the
breach of the promises or duties
Objective theory of contracts - ✔✔The view that contracting parties shall
only be bound by terms that can be objectively inferred from promises
made (judged by outward, objective facts as interpreted by a reasonable
person)
Objective facts include... - ✔✔what the party said when entering into the
contract,
how the party acted or appeared, and
the circumstances surrounding the transaction
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Pan Handle Realty, LLC v. Olins - ✔✔Olins want to rent a luxury house
from Pan Handle realty. They sent him lease, they met up and negotiated,
and a final draft of the lease was signed. Olins gave a check for the first
year's rent but stopped making payments on it. Olins said he no longer
intended to rent the house. Realty sued for breach of contract
Decision: Realty won. Olins appealed but appellate court affirmed lower
court's decision. Realty was granted compensation of one year's rent plus
attorney and other fees
4 requirements for a valid contract - ✔✔agreement, consideration,
contractual capacity, legality
without all 4, no true contract exists
Agreement - ✔✔offer and an acceptance. One party must offer to enter into
a legal agreement, and another party must accept the terms of the offer
Consideration - ✔✔Any promises made by the parties must be supported
by legally sufficient and bargained-for consideration (something of value
received or promised to convince a person to make a deal)
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Contractual Capacity - ✔✔The legal ability to enter into contracts. The
threshold mental capacity, or competence level, required by law for a party
who enters into a contract to be bound by that contract
Legality - ✔✔The contract's purpose must be to accomplish some goal that
is legal and not against public policy
Defenses to the Enforceability of a Contract - ✔✔1. Voluntary consent
2. Form
Voluntary consent - ✔✔The consent of both parties must be voluntary. For
instance, if a contract was formed as a result of fraud, mistake, or duress
(coercion), the contract may not be enforceable
Form - ✔✔The contract must be in whatever form the law requires. Some
contracts must be in writing to be enforceable
Two parties in the contract - ✔✔offeror (makes the proposal) and offeree
(accepts or rejects)
Bilateral Contract - ✔✔Promise for a promise: A type of contract that arises
when a promise is given in exchange for a return promise
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, No performance, such as the payment of funds or delivery of goods, need
take place; the contract comes into existence at the moment the promises
are exchanged
Bilateral Contract example - ✔✔I'll give you $200 for your old iPhone
Unilateral Contract - ✔✔Promise for an act/performance: A type of contract
that results when an offer can be accepted only by the offeree's
performance
The contract is formed not at the moment when promises are exchanged
but rather when the contract is performed
Unilateral Contract example - ✔✔IF you drive my car from NYC to LA, I'll
pay you $1,000
Revocation of Offers for Unilateral Contracts - ✔✔once performance has
been substantially undertaken, offeror cannot revoke offer
Formal contracts - ✔✔contract that require a special form or method of
creation (formation) to be enforceable
ex. negotiable instruments (checks, drafts, promissory notes, and
certificates of deposit)
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Answers 100% Solved | Graded A+
Chapter 10 - ✔✔
Contract - ✔✔A set of promises constituting an agreement between parties,
giving each a legal duty to the other and the right to seek a remedy for the
breach of the promises or duties
Objective theory of contracts - ✔✔The view that contracting parties shall
only be bound by terms that can be objectively inferred from promises
made (judged by outward, objective facts as interpreted by a reasonable
person)
Objective facts include... - ✔✔what the party said when entering into the
contract,
how the party acted or appeared, and
the circumstances surrounding the transaction
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Pan Handle Realty, LLC v. Olins - ✔✔Olins want to rent a luxury house
from Pan Handle realty. They sent him lease, they met up and negotiated,
and a final draft of the lease was signed. Olins gave a check for the first
year's rent but stopped making payments on it. Olins said he no longer
intended to rent the house. Realty sued for breach of contract
Decision: Realty won. Olins appealed but appellate court affirmed lower
court's decision. Realty was granted compensation of one year's rent plus
attorney and other fees
4 requirements for a valid contract - ✔✔agreement, consideration,
contractual capacity, legality
without all 4, no true contract exists
Agreement - ✔✔offer and an acceptance. One party must offer to enter into
a legal agreement, and another party must accept the terms of the offer
Consideration - ✔✔Any promises made by the parties must be supported
by legally sufficient and bargained-for consideration (something of value
received or promised to convince a person to make a deal)
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Contractual Capacity - ✔✔The legal ability to enter into contracts. The
threshold mental capacity, or competence level, required by law for a party
who enters into a contract to be bound by that contract
Legality - ✔✔The contract's purpose must be to accomplish some goal that
is legal and not against public policy
Defenses to the Enforceability of a Contract - ✔✔1. Voluntary consent
2. Form
Voluntary consent - ✔✔The consent of both parties must be voluntary. For
instance, if a contract was formed as a result of fraud, mistake, or duress
(coercion), the contract may not be enforceable
Form - ✔✔The contract must be in whatever form the law requires. Some
contracts must be in writing to be enforceable
Two parties in the contract - ✔✔offeror (makes the proposal) and offeree
(accepts or rejects)
Bilateral Contract - ✔✔Promise for a promise: A type of contract that arises
when a promise is given in exchange for a return promise
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, No performance, such as the payment of funds or delivery of goods, need
take place; the contract comes into existence at the moment the promises
are exchanged
Bilateral Contract example - ✔✔I'll give you $200 for your old iPhone
Unilateral Contract - ✔✔Promise for an act/performance: A type of contract
that results when an offer can be accepted only by the offeree's
performance
The contract is formed not at the moment when promises are exchanged
but rather when the contract is performed
Unilateral Contract example - ✔✔IF you drive my car from NYC to LA, I'll
pay you $1,000
Revocation of Offers for Unilateral Contracts - ✔✔once performance has
been substantially undertaken, offeror cannot revoke offer
Formal contracts - ✔✔contract that require a special form or method of
creation (formation) to be enforceable
ex. negotiable instruments (checks, drafts, promissory notes, and
certificates of deposit)
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
