MGT 330 Exam 2 Questions and
Answers15
Types of contracts (9) - ANSWERS-bilateral (promise for a promise), unilateral (promise for an
act), express (terms spelled out verbally or in writing), implied (implied from the conduct of the
parties), quasi-contract (implied at law to prevent unjust enrichment), executory (terms of
contract completion), void (contract element missing), void able (one party can get out of the
contract), unenforceable (valid contract that cannot be enforced)
Sources of contract law - ANSWERS-UCC Article 2- sale of goods
Common Law- real estate and services
click on agreements - ANSWERS-an agreement that arises when a buyer, engaging in a
transaction on a computer, indicates assent to be bound by the terms of the offer by clicking a
button that says "I agree".
Elements of a contract - ANSWERS-offer, acceptance, consideration, capacity, legal
agreement - ANSWERS-offer and acceptance-promise to perform or not to perform some
specified act in the future
-offeror (making offer) and offeree (power to accept the terms), with intent, definite terms,
communication to offeree
acceptance- voluntary assent to terms of offer only made to whom offer is made before
terminated
mailbox rule - ANSWERS-if an offer doesn't state otherwise, acceptance by mail is effective the
moment of posting, properly addressed and stamped (acceptance is an acceptance the minute
it is in the mailbox)
, terminations of offers - ANSWERS--an offer can be revoked at any time prior to acceptance by
rejection or counter offer (except when seller has paid to leave offer open (option) or sets a
merchants firm offer of when it is valid until)
-a counteroffer is used by non merchants and is a contract between two companies in business
consideration - ANSWERS--any promises made by the parties must be supported by legally
sufficient and bargained for consideration (something of value promised/received to convince
person into deal)
-not consideration if it is a preexisting duty or past consideration (after the fact)
contractual capacity - ANSWERS-both parties in the contract must have contractual capacity
(law must recognize them as possessing characteristics that qualify them as competent parties-
minor/temporarily insane/extremely drunk not ok)
legality - ANSWERS-contracts purpose must be to accomplish a goal that is legal and not against
public policy.
promissory estoppel - ANSWERS--a doctrine that applies when a promisor makes a clear and
definite promise on which the promisee justifiably relies; such a promise is binding if justice will
be better served by the enforcement of the promise.
(exception for consideration, may still apply if all the above are true event without
consideration)
contracting with a minor - ANSWERS-the age of majority in NC is 18 unless emancipated. A
minor can enter into any contract that an adult can provided that the contract is not one
prohibited by law for minors and it is voidable at the option of that minor (disaffirm)
shrink wrap agreements - ANSWERS-an agreement between a manufacturer and user where the
terms are expressed inside a box in which the computer hardware or software is packaged
Answers15
Types of contracts (9) - ANSWERS-bilateral (promise for a promise), unilateral (promise for an
act), express (terms spelled out verbally or in writing), implied (implied from the conduct of the
parties), quasi-contract (implied at law to prevent unjust enrichment), executory (terms of
contract completion), void (contract element missing), void able (one party can get out of the
contract), unenforceable (valid contract that cannot be enforced)
Sources of contract law - ANSWERS-UCC Article 2- sale of goods
Common Law- real estate and services
click on agreements - ANSWERS-an agreement that arises when a buyer, engaging in a
transaction on a computer, indicates assent to be bound by the terms of the offer by clicking a
button that says "I agree".
Elements of a contract - ANSWERS-offer, acceptance, consideration, capacity, legal
agreement - ANSWERS-offer and acceptance-promise to perform or not to perform some
specified act in the future
-offeror (making offer) and offeree (power to accept the terms), with intent, definite terms,
communication to offeree
acceptance- voluntary assent to terms of offer only made to whom offer is made before
terminated
mailbox rule - ANSWERS-if an offer doesn't state otherwise, acceptance by mail is effective the
moment of posting, properly addressed and stamped (acceptance is an acceptance the minute
it is in the mailbox)
, terminations of offers - ANSWERS--an offer can be revoked at any time prior to acceptance by
rejection or counter offer (except when seller has paid to leave offer open (option) or sets a
merchants firm offer of when it is valid until)
-a counteroffer is used by non merchants and is a contract between two companies in business
consideration - ANSWERS--any promises made by the parties must be supported by legally
sufficient and bargained for consideration (something of value promised/received to convince
person into deal)
-not consideration if it is a preexisting duty or past consideration (after the fact)
contractual capacity - ANSWERS-both parties in the contract must have contractual capacity
(law must recognize them as possessing characteristics that qualify them as competent parties-
minor/temporarily insane/extremely drunk not ok)
legality - ANSWERS-contracts purpose must be to accomplish a goal that is legal and not against
public policy.
promissory estoppel - ANSWERS--a doctrine that applies when a promisor makes a clear and
definite promise on which the promisee justifiably relies; such a promise is binding if justice will
be better served by the enforcement of the promise.
(exception for consideration, may still apply if all the above are true event without
consideration)
contracting with a minor - ANSWERS-the age of majority in NC is 18 unless emancipated. A
minor can enter into any contract that an adult can provided that the contract is not one
prohibited by law for minors and it is voidable at the option of that minor (disaffirm)
shrink wrap agreements - ANSWERS-an agreement between a manufacturer and user where the
terms are expressed inside a box in which the computer hardware or software is packaged
