Contract Law for Paralegals Exam Questions With Accurate
Solutions.
What is a contract? - accurate answers-a contract is a legally enforceable
agreement composed of a promise or promises that have been agreed on and
that create both rights and duties for the parties to the agreement. Requires:
- mutual assent,
- consideration, aka "bargained-for exchange of promises", and
- no defenses to formation. (#1, 8)
.
What law applies to:
Services
Land
Goods - accurate answers-• common law (state case law) for services;
• common law (state case law) for land sales; and
• Uniform Commercial Code for goods
(UCC Article 2 and NRS 104.2)
(#1, p. 9)
.
What are the key three elements of a contract? - accurate answers-• mutual
assent
• consideration
• no defenses to formation
(#1, p. 12)
.
What three forms do contracts take and how are they classified? - accurate
answers-• express contracts: formed by written or spoken language
.
• implied contracts: formed by conduct
.
• quasi-contracts: a legal fiction, they are formed by law as a consideration
substitute to avoid unjust enrichment ; not formed by mutual agreement of
the parties.
(#3, PPT-2 and Beckman lecture 8/1/2013 merged and edited)
.
,classifications are:
• bilateral
• unilateral
(#1, pp. 8-9)
.
What is the preemption doctrine? - accurate answers-"federal substantive law
supplants state law, but, absent other provisions, both state and federal courts
have concurrent jurisdiction of actions arising under that law . . . ."
(Garner 2011)
(#1, p. 10)
.
What is mutual assent (or consent)? - accurate answers-a "meeting of the
minds" wherein the parties manifest their intention to enter into a contract.
This manifestation consists of a valid offer and a valid acceptance.
(#1, p. 12 and Beckman lecture 8/1/2013 merged and edited)
.
agreement, approval, permission; especially, verbal or nonverbal conduct
reasonably interpreted as willingness. "The requirement of 'assent,' which is
fundamental to the formation of a binding contract, implies in a general way
that both parties to an exchange shall have a reasonably clear conception of
what they are getting and what they are giving up." ---Chirelstein (Black's).
.
What is an offer and how is it made? - accurate answers-the beginning of a
contract where the offeror indicates his intention to enter into an agreement
in a way that the offeree can accept by simply assenting to the stated
intention.
(#1, p. 11)
.
a promise to perform conditional on receiving acceptance (#4, 11).
.
must be accepted while "alive" (#3, PPT-2)
.
What comprises a valid offer? - accurate answers-composed of:
a) a promise to enter into a contract is expressed
b) in clear and certain terms
,c) communicated to the offeree
(#3, PPT-2).
.
What is an offer for a bilateral contract? - accurate answers-a promise (offer)
is offered in exchange for a promise (acceptance).
the initial offer is composed of:
a) the expression of a promise to enter into a contract
b) in clear and certain terms
c) communicated to the offeree
(#1, 12; #3, PPT-2).
What is an offer for a unilateral contract? - accurate answers-a promise (offer)
is offered in exchange for performance (acceptance).
the initial offer is composed of:
a) the expression of a promise to enter into a contract
b) in clear and certain terms
c) communicated to the offeree
(#1, 12; #3, PPT-2).
acceptance is by performance, that is, by completion of the requested act.
offeror cannot revoke the offer once it has been relied upon by the offeree.
offeror must allow completion; otherwise, subject to restitution damages.
.
(#1, p. 12 and lecture 8/1/2013 merged and edited)
What is a quasi-contract? - accurate answers-a legal fiction formed by law to
avoid unjust enrichment exemplified by promissory estoppel, aka detrimental
reliance. The court imposes this contract as a remedy whereby detrimental
reliance becomes a consideration substitute. Unjust enrichment is mandatory
for the imposition of this quasi-contract (Beckman lecture, 8/1/2013).
.
quasi-contract: implied-in-law contract: an obligation created by law for the
sake of justice; specifically, an obligation imposed by law because of some
special relationship between the parties or because one of them would
otherwise be unjustly enriched. An implied-in-law contract is not actually a
contract, but instead is a remedy that allows the plaintiff to recover a benefit
conferred on the defendant. Also termed contract implied-in-law, quasi-
contract, constructive contract (Black's).
, .
How are offers terminated? - accurate answers-1. revocation by the offeror;
2. rejection by the offeree;
3. termination by law
(#1, p. 13).
.
Who can accept offers? - accurate answers-a person can accept an offer if the
offeror has created a power of acceptance in them. This means that any
person can accept an offer if he knows of the offer and he is the party to whom
the offer was made.
(#1, p. 15)
.
Who can revoke an offer? - accurate answers-the offeror.
Who can reject an offer? - accurate answers-the offeree.
What is an acceptance and what are the methods of acceptance? - accurate
answers-when an offeree assents to or agrees to an offer, which creates an
agreement.
.
can be by:
• performance,
• promise, and,
• in limited cases, by silence.
(#1, p. 16)
.
What is a valid acceptance for a bilateral contract? - accurate answers-
composed of:
a) an offeree who has the power of acceptance;
b) his acceptance is unequivocal [and identical to the offer], and
c) his acceptance is communicated to the offeror (#3, PPT-2).
.
acceptance in a bilateral contract occurs when the offeree makes a promise to
perform the requested act. (#1. p. 10)
Solutions.
What is a contract? - accurate answers-a contract is a legally enforceable
agreement composed of a promise or promises that have been agreed on and
that create both rights and duties for the parties to the agreement. Requires:
- mutual assent,
- consideration, aka "bargained-for exchange of promises", and
- no defenses to formation. (#1, 8)
.
What law applies to:
Services
Land
Goods - accurate answers-• common law (state case law) for services;
• common law (state case law) for land sales; and
• Uniform Commercial Code for goods
(UCC Article 2 and NRS 104.2)
(#1, p. 9)
.
What are the key three elements of a contract? - accurate answers-• mutual
assent
• consideration
• no defenses to formation
(#1, p. 12)
.
What three forms do contracts take and how are they classified? - accurate
answers-• express contracts: formed by written or spoken language
.
• implied contracts: formed by conduct
.
• quasi-contracts: a legal fiction, they are formed by law as a consideration
substitute to avoid unjust enrichment ; not formed by mutual agreement of
the parties.
(#3, PPT-2 and Beckman lecture 8/1/2013 merged and edited)
.
,classifications are:
• bilateral
• unilateral
(#1, pp. 8-9)
.
What is the preemption doctrine? - accurate answers-"federal substantive law
supplants state law, but, absent other provisions, both state and federal courts
have concurrent jurisdiction of actions arising under that law . . . ."
(Garner 2011)
(#1, p. 10)
.
What is mutual assent (or consent)? - accurate answers-a "meeting of the
minds" wherein the parties manifest their intention to enter into a contract.
This manifestation consists of a valid offer and a valid acceptance.
(#1, p. 12 and Beckman lecture 8/1/2013 merged and edited)
.
agreement, approval, permission; especially, verbal or nonverbal conduct
reasonably interpreted as willingness. "The requirement of 'assent,' which is
fundamental to the formation of a binding contract, implies in a general way
that both parties to an exchange shall have a reasonably clear conception of
what they are getting and what they are giving up." ---Chirelstein (Black's).
.
What is an offer and how is it made? - accurate answers-the beginning of a
contract where the offeror indicates his intention to enter into an agreement
in a way that the offeree can accept by simply assenting to the stated
intention.
(#1, p. 11)
.
a promise to perform conditional on receiving acceptance (#4, 11).
.
must be accepted while "alive" (#3, PPT-2)
.
What comprises a valid offer? - accurate answers-composed of:
a) a promise to enter into a contract is expressed
b) in clear and certain terms
,c) communicated to the offeree
(#3, PPT-2).
.
What is an offer for a bilateral contract? - accurate answers-a promise (offer)
is offered in exchange for a promise (acceptance).
the initial offer is composed of:
a) the expression of a promise to enter into a contract
b) in clear and certain terms
c) communicated to the offeree
(#1, 12; #3, PPT-2).
What is an offer for a unilateral contract? - accurate answers-a promise (offer)
is offered in exchange for performance (acceptance).
the initial offer is composed of:
a) the expression of a promise to enter into a contract
b) in clear and certain terms
c) communicated to the offeree
(#1, 12; #3, PPT-2).
acceptance is by performance, that is, by completion of the requested act.
offeror cannot revoke the offer once it has been relied upon by the offeree.
offeror must allow completion; otherwise, subject to restitution damages.
.
(#1, p. 12 and lecture 8/1/2013 merged and edited)
What is a quasi-contract? - accurate answers-a legal fiction formed by law to
avoid unjust enrichment exemplified by promissory estoppel, aka detrimental
reliance. The court imposes this contract as a remedy whereby detrimental
reliance becomes a consideration substitute. Unjust enrichment is mandatory
for the imposition of this quasi-contract (Beckman lecture, 8/1/2013).
.
quasi-contract: implied-in-law contract: an obligation created by law for the
sake of justice; specifically, an obligation imposed by law because of some
special relationship between the parties or because one of them would
otherwise be unjustly enriched. An implied-in-law contract is not actually a
contract, but instead is a remedy that allows the plaintiff to recover a benefit
conferred on the defendant. Also termed contract implied-in-law, quasi-
contract, constructive contract (Black's).
, .
How are offers terminated? - accurate answers-1. revocation by the offeror;
2. rejection by the offeree;
3. termination by law
(#1, p. 13).
.
Who can accept offers? - accurate answers-a person can accept an offer if the
offeror has created a power of acceptance in them. This means that any
person can accept an offer if he knows of the offer and he is the party to whom
the offer was made.
(#1, p. 15)
.
Who can revoke an offer? - accurate answers-the offeror.
Who can reject an offer? - accurate answers-the offeree.
What is an acceptance and what are the methods of acceptance? - accurate
answers-when an offeree assents to or agrees to an offer, which creates an
agreement.
.
can be by:
• performance,
• promise, and,
• in limited cases, by silence.
(#1, p. 16)
.
What is a valid acceptance for a bilateral contract? - accurate answers-
composed of:
a) an offeree who has the power of acceptance;
b) his acceptance is unequivocal [and identical to the offer], and
c) his acceptance is communicated to the offeror (#3, PPT-2).
.
acceptance in a bilateral contract occurs when the offeree makes a promise to
perform the requested act. (#1. p. 10)
