Comprehensive Contract Law: Formation, Offer,
Acceptance, and Remedies UPDATED ACTUAL
Questions and CORRECT Answers
What is a contract? A promise or set of promises for which the law gives a remedy for breach or
recognizes as a duty.
What are the two requirements for a valid contract Manifestation of mutual assent (offer and acceptance) and consideration.
according to Restatement 17?
What is the Consent Theory in contract formation? It posits that there is a consensual undertaking that causes people to act.
What does the Reliance Theory state? It suggests that a change in position based on a promise can create
enforceable obligations.
What is the UCC 2-313 rule regarding opinions or An opinion or praise of a good is not considered a contract.
praise?
What are Expectation Damages? Damages that put the plaintiff in the position they would have been in had the
promise been fulfilled.
What are Reliance Damages? Damages that put the plaintiff in the position they would have been in had the
promise never happened.
What is Disgorgement or Restitution? It removes the profit that the defendant earned from the breach of the promise.
What is Specific Performance? A remedy that requires the defendant to deliver exactly what was promised,
usually limited to unique items.
What is consideration in contract law? The bargained-for exchange of value between parties, such as money, goods,
or services.
What is a Gratuitous Promise? A voluntary commitment to give a gift or perform a service without anything of
value in return, which is not enforceable.
What does Restatement 81 state about the motivation It emphasizes the intent to make the exchange rather than the motivation
for exchange? behind it.
What is the Material Benefit Rule under Restatement A promise made in recognition of a benefit previously received is binding to
86? prevent injustice.
What is an Illusory Promise? A promise that does not commit the promisor to any performance, thus not
constituting consideration.
, What is Equitable Estoppel? A legal principle that prevents a person from arguing something contrary to a
claim made or implied by their previous actions.
What are the elements of promissory estoppel A clear promise, foreseeable and reasonable reliance, detrimental reliance,
according to Restatement 90? and required to prevent injustice.
What is a Quasi-Contract? A legal construct to recover money when there is no true contract but a claim
for unjust enrichment.
What does Restatement Restitution 1 state about unjust A person who is unjustly enriched at the expense of another is subject to
enrichment? liability in restitution.
What is a Conditional Promise? A promise that becomes due only if a particular event occurs, creating a duty
that is postponed.
What is the significance of the case Lucy v. Zehmer in It illustrates the requirement for mutual assent through outward expressions of
contract law? agreement.
What is the role of fairness and equity in consideration? Consideration must reflect a fair exchange of value between parties to be
enforceable.
What does Restatement 71(2) state about performance A performance or return promise is considered bargained for if it is sought by
as consideration? the promisor in exchange for their promise.
What is the traditional rule regarding claims as valid A claim must have some merit to be considered valid consideration.
consideration?
What does Restatement 74 state about good faith A person must have a reasonable good faith belief that the claim was viable at
belief in claims? the time of the agreement.
What is the significance of the case Hoffman v. Red Owl It demonstrates that promissory estoppel can apply even if not all essential
Stores? terms are included in a promise.
What does Restatement Restitution 20 state about A professional rendering services in an emergency is entitled to reasonable
emergency services? compensation to avoid unjust enrichment.
What is the measure for restitution when protecting Restitution is measured by the loss avoided or by the reasonable charge for
another's property? services provided, whichever is less.
What is the definition of an offer in contract law? An offer is a manifestation of willingness to enter a contract that makes another
person view it as assent to that bargain.
What does Restatement 17 state about contract The formation of a contract requires a bargain with mutual assent to the
formation? exchange and consideration.
What is required for an offer to be binding? The offeror must give the offeree the power to 'close the deal' by saying yes.
What did the case Owen v. Tunison illustrate about It showed that vague promises, like 'unless I receive,' can render a promise
offers? unenforceable.
What is the significance of Fairmont Glass Works v. It established that a binding offer cannot be revoked after acceptance, even if
Crunden-Martin Woodenware, Co.? the term 'quote' is used.
Acceptance, and Remedies UPDATED ACTUAL
Questions and CORRECT Answers
What is a contract? A promise or set of promises for which the law gives a remedy for breach or
recognizes as a duty.
What are the two requirements for a valid contract Manifestation of mutual assent (offer and acceptance) and consideration.
according to Restatement 17?
What is the Consent Theory in contract formation? It posits that there is a consensual undertaking that causes people to act.
What does the Reliance Theory state? It suggests that a change in position based on a promise can create
enforceable obligations.
What is the UCC 2-313 rule regarding opinions or An opinion or praise of a good is not considered a contract.
praise?
What are Expectation Damages? Damages that put the plaintiff in the position they would have been in had the
promise been fulfilled.
What are Reliance Damages? Damages that put the plaintiff in the position they would have been in had the
promise never happened.
What is Disgorgement or Restitution? It removes the profit that the defendant earned from the breach of the promise.
What is Specific Performance? A remedy that requires the defendant to deliver exactly what was promised,
usually limited to unique items.
What is consideration in contract law? The bargained-for exchange of value between parties, such as money, goods,
or services.
What is a Gratuitous Promise? A voluntary commitment to give a gift or perform a service without anything of
value in return, which is not enforceable.
What does Restatement 81 state about the motivation It emphasizes the intent to make the exchange rather than the motivation
for exchange? behind it.
What is the Material Benefit Rule under Restatement A promise made in recognition of a benefit previously received is binding to
86? prevent injustice.
What is an Illusory Promise? A promise that does not commit the promisor to any performance, thus not
constituting consideration.
, What is Equitable Estoppel? A legal principle that prevents a person from arguing something contrary to a
claim made or implied by their previous actions.
What are the elements of promissory estoppel A clear promise, foreseeable and reasonable reliance, detrimental reliance,
according to Restatement 90? and required to prevent injustice.
What is a Quasi-Contract? A legal construct to recover money when there is no true contract but a claim
for unjust enrichment.
What does Restatement Restitution 1 state about unjust A person who is unjustly enriched at the expense of another is subject to
enrichment? liability in restitution.
What is a Conditional Promise? A promise that becomes due only if a particular event occurs, creating a duty
that is postponed.
What is the significance of the case Lucy v. Zehmer in It illustrates the requirement for mutual assent through outward expressions of
contract law? agreement.
What is the role of fairness and equity in consideration? Consideration must reflect a fair exchange of value between parties to be
enforceable.
What does Restatement 71(2) state about performance A performance or return promise is considered bargained for if it is sought by
as consideration? the promisor in exchange for their promise.
What is the traditional rule regarding claims as valid A claim must have some merit to be considered valid consideration.
consideration?
What does Restatement 74 state about good faith A person must have a reasonable good faith belief that the claim was viable at
belief in claims? the time of the agreement.
What is the significance of the case Hoffman v. Red Owl It demonstrates that promissory estoppel can apply even if not all essential
Stores? terms are included in a promise.
What does Restatement Restitution 20 state about A professional rendering services in an emergency is entitled to reasonable
emergency services? compensation to avoid unjust enrichment.
What is the measure for restitution when protecting Restitution is measured by the loss avoided or by the reasonable charge for
another's property? services provided, whichever is less.
What is the definition of an offer in contract law? An offer is a manifestation of willingness to enter a contract that makes another
person view it as assent to that bargain.
What does Restatement 17 state about contract The formation of a contract requires a bargain with mutual assent to the
formation? exchange and consideration.
What is required for an offer to be binding? The offeror must give the offeree the power to 'close the deal' by saying yes.
What did the case Owen v. Tunison illustrate about It showed that vague promises, like 'unless I receive,' can render a promise
offers? unenforceable.
What is the significance of Fairmont Glass Works v. It established that a binding offer cannot be revoked after acceptance, even if
Crunden-Martin Woodenware, Co.? the term 'quote' is used.
