BULE 303 - Test #3 questions and
answers graded A+
Sources of Contract Law - correct answer ✔✔The common law governs all contracts except
when it has been modified or replaced by statutory law, such as the Uniform Commercial Code
(UCC), or by administrative agency regulations. Contracts relating to services, real estate,
employment, and insurance, for instance, generally are governed by the common law of
contracts.
Contract - correct answer ✔✔A set of promises constituting an agreement between parties,
giving each a legal duty to the other and also the right to seek a remedy for the breach of the
promises or duties.
an agreement based on a promise that can be enforced in court
Objective Theory of Contracts - correct answer ✔✔Under this theory, a party's intention to
enter into a contract is judged by outward objective facts as a reasonable person would
interpret them (remember Lucy v. Zehmer)
1) What the party said when entering into the contract.
2) How the party acted or appeared (intent may be manifested by conduct as well as by oral or
written words).
3) The circumstances surrounding the transaction.
Requirements of a Valid Contract - correct answer ✔✔- Agreement
- Consideration
- Contractual Capacity
- Legality
,Requirements of a Valid Contract: Agreement - correct answer ✔✔Offer and Acceptance
Requirements of a Valid Contract: Consideration - correct answer ✔✔Something of value
received or promised, such as money, to convince a person to make a deal
Requirements of a Valid Contract: Contractual Capacity - correct answer ✔✔The law must
recognize them as possessing characteristics that qualify them as competent parties to enter
into a contractual relationship
Requirements of a Valid Contract: Legality - correct answer ✔✔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 - correct answer ✔✔Voluntary Consent: All parties
must voluntarily consent to the contract.
Form: Some types of contracts must be in writing.
Bilateral Contract - correct answer ✔✔Two parties must mutually exchange promises (promise
for a promise - contract formed when offeree accepts the offer)
Unilateral Contract - correct answer ✔✔Is a promise for an act, person looking for an action to
be completed.
Contract formed when offeree takes action, the conduct (action) is the acceptance
Revocation of Offers for Unilateral Contracts - correct answer ✔✔In contract law, offers are
normally revocable (capable of being taken back, or canceled) until accepted. The modern day
view is that once performance of the contract has been substantially undertaken, the offeror
cannot revoke the offer.
, Express Contract - correct answer ✔✔A contract in which the terms of the agreement are
stated in words, oral or written.
Implied Contract - correct answer ✔✔A contract formed in whole or in part from the conduct of
the parties.
Executed Contract - correct answer ✔✔A contract that has been fully performed by both
parties.
Executory Contract - correct answer ✔✔A contract that has *NOT* been fully performed on
either side
Valid Contract - correct answer ✔✔A contract that results when the elements necessary for
contract formation are present (agreement, consideration, contractual capacity, and legality)
Voidable Contract - correct answer ✔✔A contract that may be legally avoided at the option of
one or both of the parties.
A contract that can be legally rescinded (canceled) at the option of one or more parties if they
give the court a reason why.
Unenforceable Contract - correct answer ✔✔A valid contract rendered unenforceable by some
statute or law (ie: a contract entered into by a minor)
Void Contract - correct answer ✔✔A valid contract rendered unenforceable by some statute or
law.
No contract exists
answers graded A+
Sources of Contract Law - correct answer ✔✔The common law governs all contracts except
when it has been modified or replaced by statutory law, such as the Uniform Commercial Code
(UCC), or by administrative agency regulations. Contracts relating to services, real estate,
employment, and insurance, for instance, generally are governed by the common law of
contracts.
Contract - correct answer ✔✔A set of promises constituting an agreement between parties,
giving each a legal duty to the other and also the right to seek a remedy for the breach of the
promises or duties.
an agreement based on a promise that can be enforced in court
Objective Theory of Contracts - correct answer ✔✔Under this theory, a party's intention to
enter into a contract is judged by outward objective facts as a reasonable person would
interpret them (remember Lucy v. Zehmer)
1) What the party said when entering into the contract.
2) How the party acted or appeared (intent may be manifested by conduct as well as by oral or
written words).
3) The circumstances surrounding the transaction.
Requirements of a Valid Contract - correct answer ✔✔- Agreement
- Consideration
- Contractual Capacity
- Legality
,Requirements of a Valid Contract: Agreement - correct answer ✔✔Offer and Acceptance
Requirements of a Valid Contract: Consideration - correct answer ✔✔Something of value
received or promised, such as money, to convince a person to make a deal
Requirements of a Valid Contract: Contractual Capacity - correct answer ✔✔The law must
recognize them as possessing characteristics that qualify them as competent parties to enter
into a contractual relationship
Requirements of a Valid Contract: Legality - correct answer ✔✔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 - correct answer ✔✔Voluntary Consent: All parties
must voluntarily consent to the contract.
Form: Some types of contracts must be in writing.
Bilateral Contract - correct answer ✔✔Two parties must mutually exchange promises (promise
for a promise - contract formed when offeree accepts the offer)
Unilateral Contract - correct answer ✔✔Is a promise for an act, person looking for an action to
be completed.
Contract formed when offeree takes action, the conduct (action) is the acceptance
Revocation of Offers for Unilateral Contracts - correct answer ✔✔In contract law, offers are
normally revocable (capable of being taken back, or canceled) until accepted. The modern day
view is that once performance of the contract has been substantially undertaken, the offeror
cannot revoke the offer.
, Express Contract - correct answer ✔✔A contract in which the terms of the agreement are
stated in words, oral or written.
Implied Contract - correct answer ✔✔A contract formed in whole or in part from the conduct of
the parties.
Executed Contract - correct answer ✔✔A contract that has been fully performed by both
parties.
Executory Contract - correct answer ✔✔A contract that has *NOT* been fully performed on
either side
Valid Contract - correct answer ✔✔A contract that results when the elements necessary for
contract formation are present (agreement, consideration, contractual capacity, and legality)
Voidable Contract - correct answer ✔✔A contract that may be legally avoided at the option of
one or both of the parties.
A contract that can be legally rescinded (canceled) at the option of one or more parties if they
give the court a reason why.
Unenforceable Contract - correct answer ✔✔A valid contract rendered unenforceable by some
statute or law (ie: a contract entered into by a minor)
Void Contract - correct answer ✔✔A valid contract rendered unenforceable by some statute or
law.
No contract exists
