BUL4421 FINAL Gendler FAU CH 13-
20, 32, 50 &51 Test Questions Fully
Solved 2025-2026.
Agreement - 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
Contract - 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.
Consideration - Answer The bargained-for exchange; what each party gets in exchange for
his or her promise under a contract.
Contractual Capacity - Answer The legal ability to enter into a binding agreement
Who has contractual capacity? - Answer Most adults over the age of majority have the
capacity. A person who has the mental ability to understand his or her rights and obligations
and will comply with contractual terms.
Who does not have contractual capacity? - Answer Those under the age of majority, those
with mental illness, and sufficiently intoxicated persons
Objective Theory of Contracts - Answer The existence of a contract is based on the parties'
outward manifestations of intent and its interpretation is based on how a reasonable person
would interpret it
Bilateral Contract - Answer A promise exchanged for a promise
Unilateral Contract - Answer A promise in exchange for an act
Express Contract - Answer The terms of the contract are clearly set forth in spoken or written
words
Implied Contract - Answer Arise not from words but from the conduct of the parties
, Voidable Contract - Answer One or both parties have option to withdraw from the contract
or enforce it
Option Contract - Answer The offeree gives the offerer consideration in exchange for holding
the offer open for a specified amount of time
Revocation - Answer The offeror can revoke the offer at any time unless the offeree entered
into an option contract with the offeror. It is effective when the offeree receives it.
Rejection - Answer A way to terminate the offer, effectuated by the offeree.
Counteroffer - Answer An offeree's response to an offer in which the offeree rejects the
original offer and at the same time makes a new offer.
Destruction or subsequent illegality of the subject matter - Answer If the subject matter of
the offer is destroyed or becomes illegal, the offer immediately terminates
Lapse of Time - Answer If the offer states it will be held open for only a certain time, it
terminates 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.
Authorized Means of Acceptance - Answer if the offer specifies that acceptance must be
communicated by a specific mode, that mode is the only means for accepting the offer. If no
mode of communication is specified, any reasonable means of acceptance is valid.
Unauthorized Means of Acceptance - Answer When an offer specifies that acceptance must
be communicated by a particular mode, no other form of acceptance is valid. For a unilateral
contract, only performance by the offeree constitutes a valid acceptance.
Types of Consideration - Answer -benefit to promisee
-detriment to promisor
-promise to do something
-promise to refrain from doing something
(all need legality of performance)
20, 32, 50 &51 Test Questions Fully
Solved 2025-2026.
Agreement - 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
Contract - 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.
Consideration - Answer The bargained-for exchange; what each party gets in exchange for
his or her promise under a contract.
Contractual Capacity - Answer The legal ability to enter into a binding agreement
Who has contractual capacity? - Answer Most adults over the age of majority have the
capacity. A person who has the mental ability to understand his or her rights and obligations
and will comply with contractual terms.
Who does not have contractual capacity? - Answer Those under the age of majority, those
with mental illness, and sufficiently intoxicated persons
Objective Theory of Contracts - Answer The existence of a contract is based on the parties'
outward manifestations of intent and its interpretation is based on how a reasonable person
would interpret it
Bilateral Contract - Answer A promise exchanged for a promise
Unilateral Contract - Answer A promise in exchange for an act
Express Contract - Answer The terms of the contract are clearly set forth in spoken or written
words
Implied Contract - Answer Arise not from words but from the conduct of the parties
, Voidable Contract - Answer One or both parties have option to withdraw from the contract
or enforce it
Option Contract - Answer The offeree gives the offerer consideration in exchange for holding
the offer open for a specified amount of time
Revocation - Answer The offeror can revoke the offer at any time unless the offeree entered
into an option contract with the offeror. It is effective when the offeree receives it.
Rejection - Answer A way to terminate the offer, effectuated by the offeree.
Counteroffer - Answer An offeree's response to an offer in which the offeree rejects the
original offer and at the same time makes a new offer.
Destruction or subsequent illegality of the subject matter - Answer If the subject matter of
the offer is destroyed or becomes illegal, the offer immediately terminates
Lapse of Time - Answer If the offer states it will be held open for only a certain time, it
terminates 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.
Authorized Means of Acceptance - Answer if the offer specifies that acceptance must be
communicated by a specific mode, that mode is the only means for accepting the offer. If no
mode of communication is specified, any reasonable means of acceptance is valid.
Unauthorized Means of Acceptance - Answer When an offer specifies that acceptance must
be communicated by a particular mode, no other form of acceptance is valid. For a unilateral
contract, only performance by the offeree constitutes a valid acceptance.
Types of Consideration - Answer -benefit to promisee
-detriment to promisor
-promise to do something
-promise to refrain from doing something
(all need legality of performance)
