BUL 4421 Final Exam Questions with Correct Answers 100% Verified By Experts| Latest
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What are the four aspects of a contract? Agreement
Consideration
Capacity
Legal Object
What two things make up an agreement Offer & Acceptance
What is consideration? Bargained-for exchange. Quid pro quo exchange.
What is capacity? Legal ability to enter into a contract
Objective Theory of Contracts Contracts are not based on the internal thoughts of each
party; based on outside interactions and how a reasonable person would interpret it.
Bilateral Contract An exchange of two promises. Once two promises are made, contract is
formed.
Unilateral Contract Contract that requires performance to form; "lost cat poster"
Express Contract Terms of contract are written or spoken.
Implied Contract Contract arises not from words, but from conduct "barber shop"
Quasi-Contract Imposed by courts to prevent one party from being getting unjustly enriched
at the expense of another party.
, Void Contract Not a contract, is illegal or doesn't have all contract elements
Voidable Contract Contract where one or both parties can withdraw from it.
What is it called when someone has the power to back out in a voidable contract? "Right of
Rescission"
What is a revocation; and who can do it? The revoking of an offer by an offeree.
When can't the offeror revoke the offer? Option Contract
What is an option contract? Offeree gives consideration to keep the offer open for a specific
period of time;
What is it called when the offeree terminates an offer? Rejection
Counteroffer Not agreement, kills a contract.
What is the mirror image rule? For the acceptance to be valid, it must exactly match the
offer.
Destruction or Subsequent Illegality of the subject matter If the subject matter of the offer is
destroyed or becomes illegal, the offer is terminated.
What is the "lapse of time" clause in a contract? Offer will remain open for a specified
amount of time listed in the contract.
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What are the four aspects of a contract? Agreement
Consideration
Capacity
Legal Object
What two things make up an agreement Offer & Acceptance
What is consideration? Bargained-for exchange. Quid pro quo exchange.
What is capacity? Legal ability to enter into a contract
Objective Theory of Contracts Contracts are not based on the internal thoughts of each
party; based on outside interactions and how a reasonable person would interpret it.
Bilateral Contract An exchange of two promises. Once two promises are made, contract is
formed.
Unilateral Contract Contract that requires performance to form; "lost cat poster"
Express Contract Terms of contract are written or spoken.
Implied Contract Contract arises not from words, but from conduct "barber shop"
Quasi-Contract Imposed by courts to prevent one party from being getting unjustly enriched
at the expense of another party.
, Void Contract Not a contract, is illegal or doesn't have all contract elements
Voidable Contract Contract where one or both parties can withdraw from it.
What is it called when someone has the power to back out in a voidable contract? "Right of
Rescission"
What is a revocation; and who can do it? The revoking of an offer by an offeree.
When can't the offeror revoke the offer? Option Contract
What is an option contract? Offeree gives consideration to keep the offer open for a specific
period of time;
What is it called when the offeree terminates an offer? Rejection
Counteroffer Not agreement, kills a contract.
What is the mirror image rule? For the acceptance to be valid, it must exactly match the
offer.
Destruction or Subsequent Illegality of the subject matter If the subject matter of the offer is
destroyed or becomes illegal, the offer is terminated.
What is the "lapse of time" clause in a contract? Offer will remain open for a specified
amount of time listed in the contract.
