Blaw 371 Exam #4 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Freedom of contract responsibility to those who agree to create binding relationships
Have the right to enter into a contract
With this comes responsibility
Restatement of contracts Manifestation of willingness to enter into a bargain
Made to justify another person in understanding that his asset to the bargain is
invited and will conclude it
Uniform Commercial Code All states have adopted except Louisiana
Governs all commercial transactions
Many countries rely on code law only for their basic legal framework
Lex Mercatoria The law of merchants that originated in English courts
Binding Promise Promise in which the court can enforce it
Purpose of Contract law designed to enforce agreements that have some type of binding
promise/agreement
Non-binding process no consideration - court cant enforce
Express Contract Terms have been set out
Implied Contract Do not have any words but because of performance there is a certain agreement
(grocery shopping)
Elements of a valid contract offer, acceptance, consideration, capacity, legality
Preliminary negotiation Not a firm offer
Ads Not a binding offer, Preliminary negotiation
Communication of offer + acceptance Define terms and conditions, as well as communicate them to other party
Termination or withdrawal of offer Revocation, Rejection, by operation of law
Option Contracts Separate offer and requires additional consideration (monetary)
, Bilateral A promise in exchange for a promise
Contract enforced when exchanging money
Unilateral Offer is made but acceptable is performance
Find cat = $100
Enforceable once performance is made
Valid All element are meant
Enforceable on both sides
Void No contracts
Drugs/subject matter is illegal
voidable Capacity
Minors, intoxicated, mental illness
Lebron at 17
Ratification reaffirm contract once become adult
Delegation Assigned a duty under a contract (agreement with a 3rd party)
Assignment Right you have under contract (payment)
Quasi Contract (Unjust enrichment) Compensate a person who was unjustly enriched by the acts of another person
Breach of Contract Material breach or minor breach
Material = you dont have to pay for the house
Promissory Estoppel Promisor is prevented from denying a promise
Capacity Refers to legal ability from denying a promise
Exculpatory agreement types of those contracts written to completely escape liability
very few approved by the court
Unconsciousable contract Outcome is grossly unfair to an innocent party
Usury the practice of lending money and requiring the borrower to pay a high amount
of interest, considered to be illegal by law
Covenant not to complete May be restraint of trade unless limited by time, territory and ancillary to the
contract
Offer used in sale of business
CORRECT ANSWERS
Freedom of contract responsibility to those who agree to create binding relationships
Have the right to enter into a contract
With this comes responsibility
Restatement of contracts Manifestation of willingness to enter into a bargain
Made to justify another person in understanding that his asset to the bargain is
invited and will conclude it
Uniform Commercial Code All states have adopted except Louisiana
Governs all commercial transactions
Many countries rely on code law only for their basic legal framework
Lex Mercatoria The law of merchants that originated in English courts
Binding Promise Promise in which the court can enforce it
Purpose of Contract law designed to enforce agreements that have some type of binding
promise/agreement
Non-binding process no consideration - court cant enforce
Express Contract Terms have been set out
Implied Contract Do not have any words but because of performance there is a certain agreement
(grocery shopping)
Elements of a valid contract offer, acceptance, consideration, capacity, legality
Preliminary negotiation Not a firm offer
Ads Not a binding offer, Preliminary negotiation
Communication of offer + acceptance Define terms and conditions, as well as communicate them to other party
Termination or withdrawal of offer Revocation, Rejection, by operation of law
Option Contracts Separate offer and requires additional consideration (monetary)
, Bilateral A promise in exchange for a promise
Contract enforced when exchanging money
Unilateral Offer is made but acceptable is performance
Find cat = $100
Enforceable once performance is made
Valid All element are meant
Enforceable on both sides
Void No contracts
Drugs/subject matter is illegal
voidable Capacity
Minors, intoxicated, mental illness
Lebron at 17
Ratification reaffirm contract once become adult
Delegation Assigned a duty under a contract (agreement with a 3rd party)
Assignment Right you have under contract (payment)
Quasi Contract (Unjust enrichment) Compensate a person who was unjustly enriched by the acts of another person
Breach of Contract Material breach or minor breach
Material = you dont have to pay for the house
Promissory Estoppel Promisor is prevented from denying a promise
Capacity Refers to legal ability from denying a promise
Exculpatory agreement types of those contracts written to completely escape liability
very few approved by the court
Unconsciousable contract Outcome is grossly unfair to an innocent party
Usury the practice of lending money and requiring the borrower to pay a high amount
of interest, considered to be illegal by law
Covenant not to complete May be restraint of trade unless limited by time, territory and ancillary to the
contract
Offer used in sale of business
