BUL 4310 EXAM 2 STUDY GUIDE
Contract - Answer -a legally enforceable agreement
Contract law reduces transaction costs by - Answer -1. Encouraging the performance
of
voluntary agreements by providing a sanction for breach
2. Reducing negotiation costs by
providing standard or customary terms for various types of transactions; and
3. Discouraging misleading conduct
in contract negotiations.
Contract Law LSB 177 - Answer -Ensures that the other party will act as agreed.
Elements of a Contract - Answer -1. Offer 2. Acceptance 3. Consideration 4. Mutuality
5. Capacity 6. Legality * Generally, NOT form
Mutuality - Answer -Was there a misunderstanding?
Was a party under duress or undue influence?
Did a party lie?
Capacity - Answer -Do the parties know what's going on?
Do the parties have mental capability?
Do the parties understand key concepts?
Legality - Answer -A contact cannot violate criminal law or otherwise be against public
policy
Form - Answer -There usually is no set format for Contract Formation.
Contracts do not need to be in complex language.
Most contracts do not have to be written.
Contracts can be _______ and inferred from ____________ - Answer -oral; conduct
Written contract - Answer -serves as evidence: 1. Evidence there was a contract,
and 2. Evidence of what the parties agreed.
Sale of Goods - Answer -all things (including specially
manufactured goods) which are movable at the time of identification to the contract for
sale
What Types of Contracts are Governed by Article 2? - Answer -Sale of goods
Merchants - Answer -a person who deals in goods of the
kind or otherwise by his occupation holds himself out as having knowledge or skill
peculiar to the practices or goods involved in the transaction.
, ____ Nations have adopted the CISG - Answer -77
Every contract contains - Answer -an implied covenant of good faith and fair dealing in
its performance
Good faith and fair dealing - Answer -Refrain from imposing improper conditions on the
negotiation
Disclose enough about parallel negotiations to allow the other party to make a
counterproposal
Keep negotiating until an agreement has been reached
Objective Facts - Answer -1. What the party wrote or said when entering into a contract
2. How the party acted or appeared
3. The circumstances surrounding the transaction
Offer - Answer -A definite objective indication communication of present willingness to
be bound
Elements of an offer - Answer -1. Have objective intent
2. Be sufficiently definite,
3. Be communicated to the offeree
Not Offers - Answer -Plans
Requests for Bids Opinions Price Lists
Statements of Future Intent
Brochures
Agreements to Agree
Announcements
Summaries of Preliminary Negotiation
Invitations
Circulars
Emotional Statements
Catalogues
Advertisements
Price Quotations
Social Invitations
Essential Terms of Offers - Answer -1. Subject matter 2. Quantity 3. Price 4. Parties
Terms that may be inferred - Answer -1. Time of performance 2. Manner of
performance 3. Risk of loss 4. Where to deliver goods or services 5. When to deliver
goods or services
Look at the parties' conduct to determine their ________. - Answer -Intent
Contract - Answer -a legally enforceable agreement
Contract law reduces transaction costs by - Answer -1. Encouraging the performance
of
voluntary agreements by providing a sanction for breach
2. Reducing negotiation costs by
providing standard or customary terms for various types of transactions; and
3. Discouraging misleading conduct
in contract negotiations.
Contract Law LSB 177 - Answer -Ensures that the other party will act as agreed.
Elements of a Contract - Answer -1. Offer 2. Acceptance 3. Consideration 4. Mutuality
5. Capacity 6. Legality * Generally, NOT form
Mutuality - Answer -Was there a misunderstanding?
Was a party under duress or undue influence?
Did a party lie?
Capacity - Answer -Do the parties know what's going on?
Do the parties have mental capability?
Do the parties understand key concepts?
Legality - Answer -A contact cannot violate criminal law or otherwise be against public
policy
Form - Answer -There usually is no set format for Contract Formation.
Contracts do not need to be in complex language.
Most contracts do not have to be written.
Contracts can be _______ and inferred from ____________ - Answer -oral; conduct
Written contract - Answer -serves as evidence: 1. Evidence there was a contract,
and 2. Evidence of what the parties agreed.
Sale of Goods - Answer -all things (including specially
manufactured goods) which are movable at the time of identification to the contract for
sale
What Types of Contracts are Governed by Article 2? - Answer -Sale of goods
Merchants - Answer -a person who deals in goods of the
kind or otherwise by his occupation holds himself out as having knowledge or skill
peculiar to the practices or goods involved in the transaction.
, ____ Nations have adopted the CISG - Answer -77
Every contract contains - Answer -an implied covenant of good faith and fair dealing in
its performance
Good faith and fair dealing - Answer -Refrain from imposing improper conditions on the
negotiation
Disclose enough about parallel negotiations to allow the other party to make a
counterproposal
Keep negotiating until an agreement has been reached
Objective Facts - Answer -1. What the party wrote or said when entering into a contract
2. How the party acted or appeared
3. The circumstances surrounding the transaction
Offer - Answer -A definite objective indication communication of present willingness to
be bound
Elements of an offer - Answer -1. Have objective intent
2. Be sufficiently definite,
3. Be communicated to the offeree
Not Offers - Answer -Plans
Requests for Bids Opinions Price Lists
Statements of Future Intent
Brochures
Agreements to Agree
Announcements
Summaries of Preliminary Negotiation
Invitations
Circulars
Emotional Statements
Catalogues
Advertisements
Price Quotations
Social Invitations
Essential Terms of Offers - Answer -1. Subject matter 2. Quantity 3. Price 4. Parties
Terms that may be inferred - Answer -1. Time of performance 2. Manner of
performance 3. Risk of loss 4. Where to deliver goods or services 5. When to deliver
goods or services
Look at the parties' conduct to determine their ________. - Answer -Intent
