LSTD 2106 EXAM 2 QUESTIONS AND
ANSWERS 100% ACCURATE
what is a contract - ANSWER-an agreement (or set of promises) enforceable at law
what is an agreement - ANSWER-any meeting of the minds resulting in a mutual
decision
what is a promise - ANSWER-a guarantee that the speaker will do or refrain from doing
something in the future
what is a bilateral contract - ANSWER-one promise in exchange for another promise
(offer in exchange for an offer)
what is an unilateral contract - ANSWER-one promise from offeror in exchange for a
performance
what is an offeror - ANSWER-person extending an offer (decides terms)
what is an offeree - ANSWER-one getting the offer
what is an expressed contract - ANSWER-we know exist by parties' spoken and written
words
what is an implied contract - ANSWER-an agreement that is already known by both
parties' conduct
ex: hairdresser knowing to always touch up your roots with constant agreed upon price
what is a valid contract - ANSWER-an agreement that meets all of the laws'
requirements to be a contract
what is a void contract - ANSWER-an agreement that the courts will automatically throw
out because it lacks legality
what is a voidable contract - ANSWER-agreement is not automatically tossed out, but
we will give one of the parties the option to get out of it (lacks capacity or consent)
what is an unenforceable contract - ANSWER-parties failed to put it in writing (lacks
writing element)
what are the sources of contract law - ANSWER-uniform commercial code (UCC) and
state common law
,what state has not adopted the UCC - ANSWER-Louisiana
what is the UCC - ANSWER-governs contracts for the sale of goods
what is a good - ANSWER-something that is tangible and movable
what does not count as a good - ANSWER-intellectual property and land or things
permanently attached to land
what is state common law - ANSWER-all other contracts (any sale of a non-good,
service, employment, etc.)
what is a hybrid contract - ANSWER-sale of goods and services
what test is used under hybrid contracts - ANSWER-the primary purpose test aka
predominant thrust test
what are the four overarching questions when determining if it is a contract - ANSWER-
1. did the parties form an enforceable contract
2. what were the terms and duties of the contract
3. did the defendant do what they promised
4. what remedy will we provide to compensate the plaintiff
what is it called when the offer goes away - ANSWER-it is terminated
when can an offer terminate - ANSWER-parties kill an offer or when the law steps in
and says there is no more offer
when can parties terminate an offer - ANSWER-revocation or when an action occurs
that goes against the offer
what is revocation - ANSWER-offeror takes back the offer
what are the 2 situations when the offeror cannot revoke an offer - ANSWER-partial
performance/detrimental reliance or option contract
what is partial performance/detrimental reliance - ANSWER-offeror has to give offeree a
reasonable amount of time
what test do we use to determine if it was an enforceable contract - ANSWER-7
elements test (has to meet each element)
what are the 7 elements of the 7 elements test - ANSWER-1. offer
2. acceptance
3. consideration
4. legality
, 5. capacity
6. consent
7. writing
what does offer + acceptance = - ANSWER-mutual assent
what is an offer - ANSWER-a promise or commitment to do or refrain from doing some
specific activity
what criteria has to be met for it to be an offer - ANSWER-has to be clear and
communicated and have serious intent to be bound
what does clear mean - ANSWER-both parties know what is going on
what does serious intent to be bound mean - ANSWER-every statement can be labeled
as: 1. serious offer; or 2. invitation to deal; or 3. jest (joking)
what is a test what we can use to distinguish serious offers from jokes - ANSWER-
objective test (reasonable person test)
why can't we use a subjective test to distinguish an offer from a joke - ANSWER-it is
problematic because we do not know what is going on is someone's head
what is acceptance - ANSWER-the offeree's expression of agreement to the terms of
the offer
as long as the offer is floating out there, the offer can be _______ - ANSWER-accepted
under the acceptance element, to be effective, the offeree has to do ______ -
ANSWER-accept the terms of the offer
what is a option contract - ANSWER-offeree purchases offeror's right to not revoke the
offer
how can the offeree party terminate an offer - ANSWER-rejection or counteroffer
what is rejection - ANSWER-offeree already rejected the offer, if offeree comes back
and tries to get it back, offeror can say no
what is a counteroffer - ANSWER-proposed new terms based on offeror's original offer
what rule goes along with a counteroffer - ANSWER-mirror image rule: acceptance has
precisely the same terms
when can the offer be terminated by the operation of law - ANSWER-- lapse of time
- death/incapacity (one of the parties dies)
ANSWERS 100% ACCURATE
what is a contract - ANSWER-an agreement (or set of promises) enforceable at law
what is an agreement - ANSWER-any meeting of the minds resulting in a mutual
decision
what is a promise - ANSWER-a guarantee that the speaker will do or refrain from doing
something in the future
what is a bilateral contract - ANSWER-one promise in exchange for another promise
(offer in exchange for an offer)
what is an unilateral contract - ANSWER-one promise from offeror in exchange for a
performance
what is an offeror - ANSWER-person extending an offer (decides terms)
what is an offeree - ANSWER-one getting the offer
what is an expressed contract - ANSWER-we know exist by parties' spoken and written
words
what is an implied contract - ANSWER-an agreement that is already known by both
parties' conduct
ex: hairdresser knowing to always touch up your roots with constant agreed upon price
what is a valid contract - ANSWER-an agreement that meets all of the laws'
requirements to be a contract
what is a void contract - ANSWER-an agreement that the courts will automatically throw
out because it lacks legality
what is a voidable contract - ANSWER-agreement is not automatically tossed out, but
we will give one of the parties the option to get out of it (lacks capacity or consent)
what is an unenforceable contract - ANSWER-parties failed to put it in writing (lacks
writing element)
what are the sources of contract law - ANSWER-uniform commercial code (UCC) and
state common law
,what state has not adopted the UCC - ANSWER-Louisiana
what is the UCC - ANSWER-governs contracts for the sale of goods
what is a good - ANSWER-something that is tangible and movable
what does not count as a good - ANSWER-intellectual property and land or things
permanently attached to land
what is state common law - ANSWER-all other contracts (any sale of a non-good,
service, employment, etc.)
what is a hybrid contract - ANSWER-sale of goods and services
what test is used under hybrid contracts - ANSWER-the primary purpose test aka
predominant thrust test
what are the four overarching questions when determining if it is a contract - ANSWER-
1. did the parties form an enforceable contract
2. what were the terms and duties of the contract
3. did the defendant do what they promised
4. what remedy will we provide to compensate the plaintiff
what is it called when the offer goes away - ANSWER-it is terminated
when can an offer terminate - ANSWER-parties kill an offer or when the law steps in
and says there is no more offer
when can parties terminate an offer - ANSWER-revocation or when an action occurs
that goes against the offer
what is revocation - ANSWER-offeror takes back the offer
what are the 2 situations when the offeror cannot revoke an offer - ANSWER-partial
performance/detrimental reliance or option contract
what is partial performance/detrimental reliance - ANSWER-offeror has to give offeree a
reasonable amount of time
what test do we use to determine if it was an enforceable contract - ANSWER-7
elements test (has to meet each element)
what are the 7 elements of the 7 elements test - ANSWER-1. offer
2. acceptance
3. consideration
4. legality
, 5. capacity
6. consent
7. writing
what does offer + acceptance = - ANSWER-mutual assent
what is an offer - ANSWER-a promise or commitment to do or refrain from doing some
specific activity
what criteria has to be met for it to be an offer - ANSWER-has to be clear and
communicated and have serious intent to be bound
what does clear mean - ANSWER-both parties know what is going on
what does serious intent to be bound mean - ANSWER-every statement can be labeled
as: 1. serious offer; or 2. invitation to deal; or 3. jest (joking)
what is a test what we can use to distinguish serious offers from jokes - ANSWER-
objective test (reasonable person test)
why can't we use a subjective test to distinguish an offer from a joke - ANSWER-it is
problematic because we do not know what is going on is someone's head
what is acceptance - ANSWER-the offeree's expression of agreement to the terms of
the offer
as long as the offer is floating out there, the offer can be _______ - ANSWER-accepted
under the acceptance element, to be effective, the offeree has to do ______ -
ANSWER-accept the terms of the offer
what is a option contract - ANSWER-offeree purchases offeror's right to not revoke the
offer
how can the offeree party terminate an offer - ANSWER-rejection or counteroffer
what is rejection - ANSWER-offeree already rejected the offer, if offeree comes back
and tries to get it back, offeror can say no
what is a counteroffer - ANSWER-proposed new terms based on offeror's original offer
what rule goes along with a counteroffer - ANSWER-mirror image rule: acceptance has
precisely the same terms
when can the offer be terminated by the operation of law - ANSWER-- lapse of time
- death/incapacity (one of the parties dies)
