BUSFIN 3500 FINAL EXAM STUDY GUIDE
contract - Answers - a promise or set of promises for the breach of which the law gives
remedy of the performance of which the law in some way recognizes as a duty
-set of legally enforceable promises
covenant not to compete - Answers - restrict what an employee may do after leaving a
co, often dictate where, when and whom an employee may work
Elements of a Contract - Answers - have to have all 4:
Agreement
Consideration
Capacity
Legality
agreement - Answers - element of a contract
mutual understanding
consists of an offer by offeror to enter into a contract and acceptance of the terms by
the offeree
consideration - Answers - required in every contract the bargained for exchange or what
each party gets in exchange for his or her promise under the contract ex car for $
capacity - Answers - the legal ability to enter into a binding agreement minors don't have
it
legality - Answers - to be enforceable, contract CANNOT be illegal or against public
policy
lack of genuine assent - Answers - defense to the enforcement of a contract
supposed to be entered freely by both parties but sometimes the offeror secures
acceptance through improper means such as fraud, duress, undue influence, or
misrepresentation
Defenses to a contract - Answers - fraud, duress, undue influence, mistake,
misrepresentation, lack of writing
objective theory of contracts - Answers - in determining whether parties intended to
enter a contract, courts look at their objective words and behavior and do not try to
figure out what they might have been secretly intending
Sources of Contract Law - Answers - Uniform Commercial Code (UCC)
Case Law
, Convention on Contracts for International Sales of Goods (CISG) good-movable
tangible not services
Common law -> easier to look at restatements
Uniform Commercial Code (UCC) - Answers - became law in states when adopted fully
or pieces
sale of a good falls under it, if not common law
includes real property and of the shelf software
bilateral contract - Answers - A PROMISE + A PROMISE
if the offeror wants a promise from the offeree to form a binding contract
unilateral contract - Answers - the offeror wants the offeree to do something, not to
promise to do something most common a reward
Purpose of Contracts - Answers - create record
structure relationship between parties
allocate risk between parties
create consequences if a party fails to keep their promise
express contracts - Answers - clearly set forth in either written or spoken words
implied contracts - Answers - arise not from words from the conduct of the parties
implied in fact conditions:
1.) plaintiff provided some property or service to defendant
2.) plaintiff expected to be paid for such property or service and a reasonable person
would have expected to pay for it
quasi contracts - Answers - aka implied in law contracts but they are not actually
contracts rather in order to prevent one party from being unjustly enriched at the
expense of another, the courts impose contractual obligations on one of the parties as if
that party had entered into a contract
Recovery in quasi contracts may be obtained when: - Answers - 1.) benefit is conferred
by the plaintiff upon the defendant
2.) defendant has knowledge of the benefit that is being bestowed upon her
3.) defendant retains the benefit under circumstances in which it would be unjust to do
without payment
valid contract - Answers - one that contains all legal elements, general rule valid
contract is one that will be enforced
void contract - Answers - in effect not a contract at all, either its object is illegal or it has
some defect so serious that it is not a contract
contract - Answers - a promise or set of promises for the breach of which the law gives
remedy of the performance of which the law in some way recognizes as a duty
-set of legally enforceable promises
covenant not to compete - Answers - restrict what an employee may do after leaving a
co, often dictate where, when and whom an employee may work
Elements of a Contract - Answers - have to have all 4:
Agreement
Consideration
Capacity
Legality
agreement - Answers - element of a contract
mutual understanding
consists of an offer by offeror to enter into a contract and acceptance of the terms by
the offeree
consideration - Answers - required in every contract the bargained for exchange or what
each party gets in exchange for his or her promise under the contract ex car for $
capacity - Answers - the legal ability to enter into a binding agreement minors don't have
it
legality - Answers - to be enforceable, contract CANNOT be illegal or against public
policy
lack of genuine assent - Answers - defense to the enforcement of a contract
supposed to be entered freely by both parties but sometimes the offeror secures
acceptance through improper means such as fraud, duress, undue influence, or
misrepresentation
Defenses to a contract - Answers - fraud, duress, undue influence, mistake,
misrepresentation, lack of writing
objective theory of contracts - Answers - in determining whether parties intended to
enter a contract, courts look at their objective words and behavior and do not try to
figure out what they might have been secretly intending
Sources of Contract Law - Answers - Uniform Commercial Code (UCC)
Case Law
, Convention on Contracts for International Sales of Goods (CISG) good-movable
tangible not services
Common law -> easier to look at restatements
Uniform Commercial Code (UCC) - Answers - became law in states when adopted fully
or pieces
sale of a good falls under it, if not common law
includes real property and of the shelf software
bilateral contract - Answers - A PROMISE + A PROMISE
if the offeror wants a promise from the offeree to form a binding contract
unilateral contract - Answers - the offeror wants the offeree to do something, not to
promise to do something most common a reward
Purpose of Contracts - Answers - create record
structure relationship between parties
allocate risk between parties
create consequences if a party fails to keep their promise
express contracts - Answers - clearly set forth in either written or spoken words
implied contracts - Answers - arise not from words from the conduct of the parties
implied in fact conditions:
1.) plaintiff provided some property or service to defendant
2.) plaintiff expected to be paid for such property or service and a reasonable person
would have expected to pay for it
quasi contracts - Answers - aka implied in law contracts but they are not actually
contracts rather in order to prevent one party from being unjustly enriched at the
expense of another, the courts impose contractual obligations on one of the parties as if
that party had entered into a contract
Recovery in quasi contracts may be obtained when: - Answers - 1.) benefit is conferred
by the plaintiff upon the defendant
2.) defendant has knowledge of the benefit that is being bestowed upon her
3.) defendant retains the benefit under circumstances in which it would be unjust to do
without payment
valid contract - Answers - one that contains all legal elements, general rule valid
contract is one that will be enforced
void contract - Answers - in effect not a contract at all, either its object is illegal or it has
some defect so serious that it is not a contract
