BUL 4421 Final Review Questions with Correct Answers 100% Verified By Experts| Latest
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contract 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 the bargained-for exchange or what each party gets in exchange for his or her
promise under the contract
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 exchanged 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 (I.e. a promise + a
requested action). The offeror wants the offeree to do something, not promise to do
something.
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
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
Option Contract the offeree gives the offeror a piece of consideration in exchange for
holding the offer open for the specified period of time
Revocation the offerer can revoke the offer at any time unless the offeree entered into an
option contract with the offerer. Revocation is effective when the offeree receives it
rejection another way to terminate the offer, effectuated by the offeree. Regardless of how
long the offer was stated to be open, once the offeree rejects it, it is terminated.
Counteroffer an offer made by an offeree to his offeror relating to the same matter as the
original offer and proposing a substituted bargain differing from that proposed by the original
offer
A counteroffer terminates the original offer
Destruction or subsequent illegality of the subject matter If the subject matter of the offer is
destroyed or becomes illegal, the offer immediately terminates
lapse of time 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.
Unauthorized Means of Acceptance when an offer specifies that acceptance must be
communicated by a particular mode, no other form of acceptance is valid
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contract 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 the bargained-for exchange or what each party gets in exchange for his or her
promise under the contract
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 exchanged 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 (I.e. a promise + a
requested action). The offeror wants the offeree to do something, not promise to do
something.
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
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
Option Contract the offeree gives the offeror a piece of consideration in exchange for
holding the offer open for the specified period of time
Revocation the offerer can revoke the offer at any time unless the offeree entered into an
option contract with the offerer. Revocation is effective when the offeree receives it
rejection another way to terminate the offer, effectuated by the offeree. Regardless of how
long the offer was stated to be open, once the offeree rejects it, it is terminated.
Counteroffer an offer made by an offeree to his offeror relating to the same matter as the
original offer and proposing a substituted bargain differing from that proposed by the original
offer
A counteroffer terminates the original offer
Destruction or subsequent illegality of the subject matter If the subject matter of the offer is
destroyed or becomes illegal, the offer immediately terminates
lapse of time 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.
Unauthorized Means of Acceptance when an offer specifies that acceptance must be
communicated by a particular mode, no other form of acceptance is valid
