BUL4421 FINAL EXAM REVIEW SPRING
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Contract - CORRECT ANSWER - A promise or set of promises for the breach of which
the law gives a remedy or performance of which the law in some way recognizes a duty.
Otherwise known as: a legally enforceable promise.
What are the four elements that a legally binding contract requires? - CORRECT
ANSWER - 1. Agreement
2. Consideration
3. Capacity
4. Legal Object
Agreement - CORRECT ANSWER - Consists of an offer by one party, called the offeror,
to enter into a contract and an acceptance of the terms of the offer by the other party called the
offeree
Consideration - CORRECT ANSWER - the bargained-for exchange or what each party
gets in exchange for his or her promise under the contract
Think- quid pro quo
Capacity - CORRECT ANSWER - The legal ability to enter into a binding agreement
What are examples of people who don't have capacity? - CORRECT ANSWER - 1. Those
under the age of 18 unless emancipated
2. People suffering from mental illness
, 3. Sufficiently intoxicated persons
Legal Object - CORRECT ANSWER - Refers to the subject matter of an agreement that is
lawful in nature, basically the purpose of the contract.
Should not be something that is against the law, public policy or morality. Ex: putting a hit out
on somebody
Objective Theory of Contracts - CORRECT ANSWER - We base the existence of a
contract on the parties' outward manifestations of intent and we based its interpretation on how a
reasonable person would interpret it.
Bilateral Contract - CORRECT ANSWER - A promise in exchange for a promise. After
promises were exchanged, a contract is formed.
Unilateral Contract - CORRECT ANSWER - Requires performance in order to form a
contract.
Promise + Requested Action
The offeror wants the offeree to do something, not just to promise to do something.
Express Contract - CORRECT ANSWER - Terms of contract are all clearly set forth in
either written or spoken words.
Implied Contract - CORRECT ANSWER - These contracts arise not from words but from
the conduct of the parties.
Ex: Getting a haircut, no contract is needed, you just pay the guy in return you get a haircut.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Contract - CORRECT ANSWER - A promise or set of promises for the breach of which
the law gives a remedy or performance of which the law in some way recognizes a duty.
Otherwise known as: a legally enforceable promise.
What are the four elements that a legally binding contract requires? - CORRECT
ANSWER - 1. Agreement
2. Consideration
3. Capacity
4. Legal Object
Agreement - CORRECT ANSWER - Consists of an offer by one party, called the offeror,
to enter into a contract and an acceptance of the terms of the offer by the other party called the
offeree
Consideration - CORRECT ANSWER - the bargained-for exchange or what each party
gets in exchange for his or her promise under the contract
Think- quid pro quo
Capacity - CORRECT ANSWER - The legal ability to enter into a binding agreement
What are examples of people who don't have capacity? - CORRECT ANSWER - 1. Those
under the age of 18 unless emancipated
2. People suffering from mental illness
, 3. Sufficiently intoxicated persons
Legal Object - CORRECT ANSWER - Refers to the subject matter of an agreement that is
lawful in nature, basically the purpose of the contract.
Should not be something that is against the law, public policy or morality. Ex: putting a hit out
on somebody
Objective Theory of Contracts - CORRECT ANSWER - We base the existence of a
contract on the parties' outward manifestations of intent and we based its interpretation on how a
reasonable person would interpret it.
Bilateral Contract - CORRECT ANSWER - A promise in exchange for a promise. After
promises were exchanged, a contract is formed.
Unilateral Contract - CORRECT ANSWER - Requires performance in order to form a
contract.
Promise + Requested Action
The offeror wants the offeree to do something, not just to promise to do something.
Express Contract - CORRECT ANSWER - Terms of contract are all clearly set forth in
either written or spoken words.
Implied Contract - CORRECT ANSWER - These contracts arise not from words but from
the conduct of the parties.
Ex: Getting a haircut, no contract is needed, you just pay the guy in return you get a haircut.
