BUL 4421 Final Exam UPDATED ACTUAL
Questions and CORRECT Answers
contract - CORRECT ANSWER - A promise or a set of promises for the breach of which
the law gives a remedy, or the performance of which the law in some way recognizes as a duty.
agreement - CORRECT ANSWER - 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
consideration - CORRECT ANSWER - The bargained-for exchange; what each party gets
in exchange for his or her promise under a contract.
contractual capacity - CORRECT ANSWER - The legal ability to enter into contracts.
- Most adults over the age of majority (18) have capacity; those under the age of majority, people
suffering from mental illness, and sufficiently intoxicated persons do not
objective theory of contracts - CORRECT ANSWER - 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
bilateral contract - CORRECT ANSWER - a promise exchanged for a promise. As soon as
the promises exchanged, a contract is formed, and the parties' legal obligations arise.
Unilateral Contract - CORRECT ANSWER - requires performance in order to form a
contract (i.e., a promise + a requested action). The offeror wants the offeree to do something, not
promise to do something.
express contract - CORRECT ANSWER - the terms of the contract are all clearly set forth
in either written or spoken words
, implied contract - CORRECT ANSWER - arise not from words but from the conduct of
the parties
void contract - CORRECT ANSWER - not a contract at all. Either its object is illegal or it
has some defect so serious it is not a contract
voidable contract - CORRECT ANSWER - one of both of the parties have the ability to
either withdraw from the contract or enforce it
option contract - CORRECT ANSWER - the offeree gives the offeror consideration in
exchange for the holding the offer upon for a specified period of time.
Revocation - CORRECT ANSWER - the offeror can revoke the offer at any time unless
the offer enters into an option contract with the offeror. Revocation is effective when the offeror
receives it.
rejection - CORRECT ANSWER - - another way to terminate the offer, effectuated by the
offeror.
- Regardless of how long the offer was stated to be open, once the offeree rejects it, it is
terminated.
counteroffer - CORRECT ANSWER - an offer made by an offeree to his offeror relating
to the same matter as the original and proposing a substituted bargain differing from that
proposed in the original offer.... A counteroffer terminates the original offer
Destruction or subsequent illegality of the subject matter - CORRECT ANSWER - if the
subject of the offer is destroyed or becomes illegal, the offer immediately terminates.
lapse of time - CORRECT ANSWER - - if the offer states it will be held open for only a
certain time, it terminated when that time expires.
- In the absence of such a time condition, the offer will expire after the lapse of a reasonable
amount of time.
Questions and CORRECT Answers
contract - CORRECT ANSWER - A promise or a set of promises for the breach of which
the law gives a remedy, or the performance of which the law in some way recognizes as a duty.
agreement - CORRECT ANSWER - 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
consideration - CORRECT ANSWER - The bargained-for exchange; what each party gets
in exchange for his or her promise under a contract.
contractual capacity - CORRECT ANSWER - The legal ability to enter into contracts.
- Most adults over the age of majority (18) have capacity; those under the age of majority, people
suffering from mental illness, and sufficiently intoxicated persons do not
objective theory of contracts - CORRECT ANSWER - 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
bilateral contract - CORRECT ANSWER - a promise exchanged for a promise. As soon as
the promises exchanged, a contract is formed, and the parties' legal obligations arise.
Unilateral Contract - CORRECT ANSWER - requires performance in order to form a
contract (i.e., a promise + a requested action). The offeror wants the offeree to do something, not
promise to do something.
express contract - CORRECT ANSWER - the terms of the contract are all clearly set forth
in either written or spoken words
, implied contract - CORRECT ANSWER - arise not from words but from the conduct of
the parties
void contract - CORRECT ANSWER - not a contract at all. Either its object is illegal or it
has some defect so serious it is not a contract
voidable contract - CORRECT ANSWER - one of both of the parties have the ability to
either withdraw from the contract or enforce it
option contract - CORRECT ANSWER - the offeree gives the offeror consideration in
exchange for the holding the offer upon for a specified period of time.
Revocation - CORRECT ANSWER - the offeror can revoke the offer at any time unless
the offer enters into an option contract with the offeror. Revocation is effective when the offeror
receives it.
rejection - CORRECT ANSWER - - another way to terminate the offer, effectuated by the
offeror.
- Regardless of how long the offer was stated to be open, once the offeree rejects it, it is
terminated.
counteroffer - CORRECT ANSWER - an offer made by an offeree to his offeror relating
to the same matter as the original and proposing a substituted bargain differing from that
proposed in the original offer.... A counteroffer terminates the original offer
Destruction or subsequent illegality of the subject matter - CORRECT ANSWER - if the
subject of the offer is destroyed or becomes illegal, the offer immediately terminates.
lapse of time - CORRECT ANSWER - - if the offer states it will be held open for only a
certain time, it terminated when that time expires.
- In the absence of such a time condition, the offer will expire after the lapse of a reasonable
amount of time.
