BUSA EXAM 2 PERRY BINDER GSU UPDATED ACTUAL Questions and
CORRECT Answers
1. Elements of an 1. Offer (offeror/Offeree)
express contract 2. Acceptance
(6) 3. Consideration
4. Capacity
5. Legality
6. Intent
2. Common law Contract law is derived from what two things?
(cases) and stat-
ues (laws)
3. offer (Elements (1) A valid offer communicated and accepted.
of an express -offeror: A person who makes an offer.
contract) -offeree: A person to whom an offer is made.
4. acceptance (ele- *Voluntary act by the offer that shows an agreement to the terms of an offer. May
ments of an ex- consist of words or conduct.*
pressed contract) -An offeree's response to an offer, rejecting the original offer and making a new
offer at the same time. Person receiving the offer changed the original offer so
wash my car for $30? No ill do it for $50.
-*counteroffer*: Responds to original offer and comes up with new terms
5. consideration Both sides must give up and receive semi-equal values. The value given in return
for a promise. Must be something of legally suflcient value, and there must be
a bargained for exchange. The deal or the contracts have to be where both sides
get and receive semi-equal value.
6. and promissory *-promissory estoppel:*Promissory Estoppel No contract, but you promised
estoppel (Detrimental Reliance) when you promised, I relied on that promised, and thus I
got harmed
(acted before promise was made) Prom story
7.
, past considera- Bad or no consideration. Consideration that took place in the past or that is
tion given for something that has already been done. Swimmer doesn't know me.
Were at lake and my friend is drowning. Swimmer saves the life. Give him $1000
tomorrow.
8. capacity *legal ability of Who can and can't enter a contract. *
-void *void*: *void neither side can enforce (illegal).* certain things like contracts illegal
-voidable is plain old void, lack of capacity (if a prior judge ruled lack of capacity) then its
-unenforcable void
*voidable:* *one side can choose to enforce it or get out of it* Contract may be
legally avoided or cancelled at the option of one or both of the parties. One side
can choose to enforce and a judge determines what is enforceable what is not
enforceable. Can decide to enforce or get our the contract.
*unenforceable:* Up to a judge, A valid contract rendered unenforceable by some
statute or law.
9. capacity *minor*: you're under 18, contracts are *voidable*at option of minor. unless
-minor *student loans, business, necessity*
-intoxication *intoxication*: person under the influence
-insanity intoxicated person is *VOIDABLE* at his option once sober
-undue influ- *duress*: you are actually forced to sign contract, gun to head, if you can prove
ence then theyll let you out
-duress *undue influence*: person of trust trying to influence like a kid trying to get
grandma to leave all to them
*insanity:* 1- if some prior court found that you lacked capacity. Any contract
you enter into will be considered void. But this is very rare. 2- if no prior courts
have ruled you lacked capacity. Then it is voidable at the guardian's option. *lacks
capacity*
10. legality -contracts must be legal or they will be void
-usury, gambling -think of title pawn or any contract where you have an interest rate higher than
, the law allows, *usury deals with interest rates that exceeds maximum allowed*
(usuries)
11. contract of adhe- One party prepares a contract and submits it to the other party on a "take-it-or
sion leave-it" basis (without negotiation).
12. unconscionable One that is so unfair and one sided that it would be unreasonable to enforce it.
contract
13. usury maximum interesest rate legally allowed
14. wells fargo (unilateral mistake) foreclosure, paralegal make one bid for 1150,000$ and she
accidentally made the bid 15,000$, anyway someone bid 20k instead and they
told her tough luck the contract was going through anyway
15. unilateral mis- A mistake that occurs when one party to a contract is mistaken as to a material
take fact.
the party that makes the mistake cannot get out of the agreement but the one not
at fault can,
when only one party enters a contract under mistaken assumption
16. intent :If both parties make a big mistake on the contract then we got no contract.
-no mutual mistake
unilateral mistake: A mistake that occurs when one party to a contract is mistaken
as to a material fact. (wells fargo case)
17. Breach of ex- plaintiff performed all conditions precedent to filling: before i sue you, i have to
press contract make sure i did everything i was suposed to do uder the contract
1 existence of
valid contract
2 breach
3 plaintiff noti-
fied defendant of
CORRECT Answers
1. Elements of an 1. Offer (offeror/Offeree)
express contract 2. Acceptance
(6) 3. Consideration
4. Capacity
5. Legality
6. Intent
2. Common law Contract law is derived from what two things?
(cases) and stat-
ues (laws)
3. offer (Elements (1) A valid offer communicated and accepted.
of an express -offeror: A person who makes an offer.
contract) -offeree: A person to whom an offer is made.
4. acceptance (ele- *Voluntary act by the offer that shows an agreement to the terms of an offer. May
ments of an ex- consist of words or conduct.*
pressed contract) -An offeree's response to an offer, rejecting the original offer and making a new
offer at the same time. Person receiving the offer changed the original offer so
wash my car for $30? No ill do it for $50.
-*counteroffer*: Responds to original offer and comes up with new terms
5. consideration Both sides must give up and receive semi-equal values. The value given in return
for a promise. Must be something of legally suflcient value, and there must be
a bargained for exchange. The deal or the contracts have to be where both sides
get and receive semi-equal value.
6. and promissory *-promissory estoppel:*Promissory Estoppel No contract, but you promised
estoppel (Detrimental Reliance) when you promised, I relied on that promised, and thus I
got harmed
(acted before promise was made) Prom story
7.
, past considera- Bad or no consideration. Consideration that took place in the past or that is
tion given for something that has already been done. Swimmer doesn't know me.
Were at lake and my friend is drowning. Swimmer saves the life. Give him $1000
tomorrow.
8. capacity *legal ability of Who can and can't enter a contract. *
-void *void*: *void neither side can enforce (illegal).* certain things like contracts illegal
-voidable is plain old void, lack of capacity (if a prior judge ruled lack of capacity) then its
-unenforcable void
*voidable:* *one side can choose to enforce it or get out of it* Contract may be
legally avoided or cancelled at the option of one or both of the parties. One side
can choose to enforce and a judge determines what is enforceable what is not
enforceable. Can decide to enforce or get our the contract.
*unenforceable:* Up to a judge, A valid contract rendered unenforceable by some
statute or law.
9. capacity *minor*: you're under 18, contracts are *voidable*at option of minor. unless
-minor *student loans, business, necessity*
-intoxication *intoxication*: person under the influence
-insanity intoxicated person is *VOIDABLE* at his option once sober
-undue influ- *duress*: you are actually forced to sign contract, gun to head, if you can prove
ence then theyll let you out
-duress *undue influence*: person of trust trying to influence like a kid trying to get
grandma to leave all to them
*insanity:* 1- if some prior court found that you lacked capacity. Any contract
you enter into will be considered void. But this is very rare. 2- if no prior courts
have ruled you lacked capacity. Then it is voidable at the guardian's option. *lacks
capacity*
10. legality -contracts must be legal or they will be void
-usury, gambling -think of title pawn or any contract where you have an interest rate higher than
, the law allows, *usury deals with interest rates that exceeds maximum allowed*
(usuries)
11. contract of adhe- One party prepares a contract and submits it to the other party on a "take-it-or
sion leave-it" basis (without negotiation).
12. unconscionable One that is so unfair and one sided that it would be unreasonable to enforce it.
contract
13. usury maximum interesest rate legally allowed
14. wells fargo (unilateral mistake) foreclosure, paralegal make one bid for 1150,000$ and she
accidentally made the bid 15,000$, anyway someone bid 20k instead and they
told her tough luck the contract was going through anyway
15. unilateral mis- A mistake that occurs when one party to a contract is mistaken as to a material
take fact.
the party that makes the mistake cannot get out of the agreement but the one not
at fault can,
when only one party enters a contract under mistaken assumption
16. intent :If both parties make a big mistake on the contract then we got no contract.
-no mutual mistake
unilateral mistake: A mistake that occurs when one party to a contract is mistaken
as to a material fact. (wells fargo case)
17. Breach of ex- plaintiff performed all conditions precedent to filling: before i sue you, i have to
press contract make sure i did everything i was suposed to do uder the contract
1 existence of
valid contract
2 breach
3 plaintiff noti-
fied defendant of
