BUL 4421 final exam questions with answers
|\ |\ |\ |\ |\ |\
Contract
a promise or set of promises for the breach of which the law
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
gives a remedy or the performance of which the law in some way
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
recognizes a duty.
|\ |\ |\
a legally binding contract requires four elements:
|\ |\ |\ |\ |\ |\
Agreement
consideration
capacity
legal object
|\
agreement
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.
|\ |\ |\ |\
offeror vs. offeree |\ |\
offeror - party who makes the offer
|\ |\ |\ |\ |\ |\
offeree - party to whom the offer is made
|\ |\ |\ |\ |\ |\ |\ |\
,consideration
the bargained-for exchange or what each party gets in exchange
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
for his or her promise under the contract.
|\ |\ |\ |\ |\ |\ |\
- what a legal entity receives in return for performing a contract
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
obligation
contractual capacity |\
the legal ability to enter into a binding agreement
|\ |\ |\ |\ |\ |\ |\ |\
Most adults over the age of majority have capacity; those under
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the age of majority, people suffering from mental illness, and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
sufficiently intoxicated persons do not |\ |\ |\ |\
objective theory of contracts |\ |\ |\
we base the existence of a contract on the parties' outward
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
manifestations of intent and we base its interpretation on how a |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reasonable person would interpret it |\ |\ |\ |\
The subjective intent of parties is not usually relevant; what
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
matters is how they represented their intent through their actions
|\ |\ |\ |\ |\ |\ |\ |\ |\
and words
|\ |\
,bilateral contract |\
a promise in exchange for a promise. As soon as the promises
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
exchanged, a contract is formed and the parties' legal obligations
|\ |\ |\ |\ |\ |\ |\ |\ |\
arise
|\
unilateral contract |\
requires performance in order to form a contract (1.e. a promise
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
+ a requested action). The offeror wants the offeree to do
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
something, not promise to do something. |\ |\ |\ |\ |\
- only performance by the offeree constitutes a valid acceptance
|\ |\ |\ |\ |\ |\ |\ |\ |\
Express Contract |\
the terms of the contract are all clearly set forth in either written
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
or spoken words|\ |\
implied contract |\
arise not from words but from the conduct of the parties
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
quasi contract |\
, also called "implied-in-law contracts, but they are not actually
|\ |\ |\ |\ |\ |\ |\ |\ |\
contracts. Courts impose contractual obligations on one of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
parties as If a contract existed to prevent one party from being
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
unjustly enriched at the expense of te other party.
|\ |\ |\ |\ |\ |\ |\ |\
void contract|\
not a contract at all. Either its object is illegal or it has some
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
defect so serious it is not a contract.
|\ |\ |\ |\ |\ |\ |\
voidable contract |\
one or both of the parties has the ability to either withdraw from
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the contract or enforce it.
|\ |\ |\ |\
elements of a valid offer |\ |\ |\ |\
1. offer must be communicated to offeree
|\ |\ |\ |\ |\ |\
2.offeror must manifest serious intent to be bound by the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
acceptance
3. offer must contain reasonable definite terms
|\ |\ |\ |\ |\ |\
option contract |\
the offeree gives the offeror consideration in exchange for
|\ |\ |\ |\ |\ |\ |\ |\ |\
holding the offer open for a specified period of time. The offer is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
irrevocable for that period of time. |\ |\ |\ |\ |\
|\ |\ |\ |\ |\ |\
Contract
a promise or set of promises for the breach of which the law
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
gives a remedy or the performance of which the law in some way
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
recognizes a duty.
|\ |\ |\
a legally binding contract requires four elements:
|\ |\ |\ |\ |\ |\
Agreement
consideration
capacity
legal object
|\
agreement
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.
|\ |\ |\ |\
offeror vs. offeree |\ |\
offeror - party who makes the offer
|\ |\ |\ |\ |\ |\
offeree - party to whom the offer is made
|\ |\ |\ |\ |\ |\ |\ |\
,consideration
the bargained-for exchange or what each party gets in exchange
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
for his or her promise under the contract.
|\ |\ |\ |\ |\ |\ |\
- what a legal entity receives in return for performing a contract
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
obligation
contractual capacity |\
the legal ability to enter into a binding agreement
|\ |\ |\ |\ |\ |\ |\ |\
Most adults over the age of majority have capacity; those under
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the age of majority, people suffering from mental illness, and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
sufficiently intoxicated persons do not |\ |\ |\ |\
objective theory of contracts |\ |\ |\
we base the existence of a contract on the parties' outward
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
manifestations of intent and we base its interpretation on how a |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reasonable person would interpret it |\ |\ |\ |\
The subjective intent of parties is not usually relevant; what
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
matters is how they represented their intent through their actions
|\ |\ |\ |\ |\ |\ |\ |\ |\
and words
|\ |\
,bilateral contract |\
a promise in exchange for a promise. As soon as the promises
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
exchanged, a contract is formed and the parties' legal obligations
|\ |\ |\ |\ |\ |\ |\ |\ |\
arise
|\
unilateral contract |\
requires performance in order to form a contract (1.e. a promise
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
+ a requested action). The offeror wants the offeree to do
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
something, not promise to do something. |\ |\ |\ |\ |\
- only performance by the offeree constitutes a valid acceptance
|\ |\ |\ |\ |\ |\ |\ |\ |\
Express Contract |\
the terms of the contract are all clearly set forth in either written
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
or spoken words|\ |\
implied contract |\
arise not from words but from the conduct of the parties
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
quasi contract |\
, also called "implied-in-law contracts, but they are not actually
|\ |\ |\ |\ |\ |\ |\ |\ |\
contracts. Courts impose contractual obligations on one of the
|\ |\ |\ |\ |\ |\ |\ |\ |\
parties as If a contract existed to prevent one party from being
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
unjustly enriched at the expense of te other party.
|\ |\ |\ |\ |\ |\ |\ |\
void contract|\
not a contract at all. Either its object is illegal or it has some
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
defect so serious it is not a contract.
|\ |\ |\ |\ |\ |\ |\
voidable contract |\
one or both of the parties has the ability to either withdraw from
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the contract or enforce it.
|\ |\ |\ |\
elements of a valid offer |\ |\ |\ |\
1. offer must be communicated to offeree
|\ |\ |\ |\ |\ |\
2.offeror must manifest serious intent to be bound by the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
acceptance
3. offer must contain reasonable definite terms
|\ |\ |\ |\ |\ |\
option contract |\
the offeree gives the offeror consideration in exchange for
|\ |\ |\ |\ |\ |\ |\ |\ |\
holding the offer open for a specified period of time. The offer is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
irrevocable for that period of time. |\ |\ |\ |\ |\
