LAW 3220 CHAPTER 10 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
What is the primary role of contract law? - Answers To provide a legal mechanism to deal with others
and create binding relationships.
What does the term 'freedom of contract' imply? - Answers It means that parties have the
responsibility to honor the agreements they create.
What are the two main sources of contract law? - Answers Common Law and the Uniform
Commercial Code (UCC).
What does UCC Article 2 cover? - Answers Contracts for the sale of goods.
What is the definition of a contract according to Sir Wm. Blackstone? - Answers An agreement, upon
sufficient consideration, to do or not to do a particular thing.
What is a modern definition of a contract? - Answers A promise or set of promises for which the law
provides a remedy for breach or recognizes a duty of performance.
What are the two types of contracts? - Answers Implied Contracts and Express Contracts.
What is an implied contract? - Answers A contract formed by actions and circumstances rather than
explicit words.
What is an express contract? - Answers A contract where the terms are stated directly by the parties,
either orally or in writing.
What are the six essential elements of a valid contract? - Answers 1. Agreement (Offer and
Acceptance), 2. Consideration, 3. Contractual Capacity, 4. Legality, 5. Genuine Consent, 6. Writing (if
necessary).
What is required for an offer to be valid? - Answers It must manifest intent, have definite terms and
conditions, and be communicated to the offeree.
What is a counteroffer? - Answers A response to an offer that rejects the original offer and proposes
new terms.
What is consideration in contract law? - Answers Something of value or a promise exchanged that
keeps a contract from being a gift.
What is the traditional rule regarding consideration? - Answers It must create a legal detriment to the
promisee or a legal benefit to the promisor.
What is promissory estoppel? - Answers An equitable doctrine that prevents a promisor from denying
a promise if the promisee has reasonably relied on it.
What case established the principle of promissory estoppel? - Answers Restatement (2nd) of
Contracts.
What was the outcome of Caley v. Gulfstream Aerospace Corp.? - Answers The court held that the
dispute resolution policy was a binding contract accepted through continued employment.
What does 'genuine consent' refer to in contract law? - Answers The requirement that both parties
must genuinely agree to the terms of the contract without coercion or misrepresentation.
What is the significance of the Statute of Frauds? - Answers It requires certain contracts to be in
writing to be enforceable.
What does 'contractual capacity' mean? - Answers The legal ability of parties to enter into a contract,
typically requiring them to be of sound mind and legal age.
What are the grounds for terminating an offer? - Answers Revocation, rejection, lapse of time,
counteroffer, or operation of law.
What is the 'mirror image' rule? - Answers The acceptance must exactly match the terms of the offer;
any changes create a counteroffer.
What is the legal effect of an advertisement in contract law? - Answers Advertisements are generally
considered invitations to negotiate rather than offers.
What is the role of 'adequacy of consideration' in contract disputes? - Answers Courts typically do not
assess the fairness of consideration unless there are exceptions like fraud or duress.
What does 'legality' refer to in contract law? - Answers The requirement that the contract's purpose
must be lawful for it to be enforceable.
What is the outcome of Universal Truckload, Inc. v. Dalton Logistics, Inc.? - Answers The court
affirmed the jury's award to Dalton based on promissory estoppel after Universal withdrew its offer.
What did the Fifth Circuit Court of Appeals affirm in Dalton Logistics, Inc.? - Answers The jury verdict.
Under which doctrine must the Federal District Court apply Texas law? - Answers The Erie doctrine.
What are the three elements of promissory estoppel in Texas? - Answers 1) A promise, 2)
Foreseeable reliance by the promisor, 3) Substantial reliance by the promisee to their detriment.
What is the primary role of contract law? - Answers To provide a legal mechanism to deal with others
and create binding relationships.
What does the term 'freedom of contract' imply? - Answers It means that parties have the
responsibility to honor the agreements they create.
What are the two main sources of contract law? - Answers Common Law and the Uniform
Commercial Code (UCC).
What does UCC Article 2 cover? - Answers Contracts for the sale of goods.
What is the definition of a contract according to Sir Wm. Blackstone? - Answers An agreement, upon
sufficient consideration, to do or not to do a particular thing.
What is a modern definition of a contract? - Answers A promise or set of promises for which the law
provides a remedy for breach or recognizes a duty of performance.
What are the two types of contracts? - Answers Implied Contracts and Express Contracts.
What is an implied contract? - Answers A contract formed by actions and circumstances rather than
explicit words.
What is an express contract? - Answers A contract where the terms are stated directly by the parties,
either orally or in writing.
What are the six essential elements of a valid contract? - Answers 1. Agreement (Offer and
Acceptance), 2. Consideration, 3. Contractual Capacity, 4. Legality, 5. Genuine Consent, 6. Writing (if
necessary).
What is required for an offer to be valid? - Answers It must manifest intent, have definite terms and
conditions, and be communicated to the offeree.
What is a counteroffer? - Answers A response to an offer that rejects the original offer and proposes
new terms.
What is consideration in contract law? - Answers Something of value or a promise exchanged that
keeps a contract from being a gift.
What is the traditional rule regarding consideration? - Answers It must create a legal detriment to the
promisee or a legal benefit to the promisor.
What is promissory estoppel? - Answers An equitable doctrine that prevents a promisor from denying
a promise if the promisee has reasonably relied on it.
What case established the principle of promissory estoppel? - Answers Restatement (2nd) of
Contracts.
What was the outcome of Caley v. Gulfstream Aerospace Corp.? - Answers The court held that the
dispute resolution policy was a binding contract accepted through continued employment.
What does 'genuine consent' refer to in contract law? - Answers The requirement that both parties
must genuinely agree to the terms of the contract without coercion or misrepresentation.
What is the significance of the Statute of Frauds? - Answers It requires certain contracts to be in
writing to be enforceable.
What does 'contractual capacity' mean? - Answers The legal ability of parties to enter into a contract,
typically requiring them to be of sound mind and legal age.
What are the grounds for terminating an offer? - Answers Revocation, rejection, lapse of time,
counteroffer, or operation of law.
What is the 'mirror image' rule? - Answers The acceptance must exactly match the terms of the offer;
any changes create a counteroffer.
What is the legal effect of an advertisement in contract law? - Answers Advertisements are generally
considered invitations to negotiate rather than offers.
What is the role of 'adequacy of consideration' in contract disputes? - Answers Courts typically do not
assess the fairness of consideration unless there are exceptions like fraud or duress.
What does 'legality' refer to in contract law? - Answers The requirement that the contract's purpose
must be lawful for it to be enforceable.
What is the outcome of Universal Truckload, Inc. v. Dalton Logistics, Inc.? - Answers The court
affirmed the jury's award to Dalton based on promissory estoppel after Universal withdrew its offer.
What did the Fifth Circuit Court of Appeals affirm in Dalton Logistics, Inc.? - Answers The jury verdict.
Under which doctrine must the Federal District Court apply Texas law? - Answers The Erie doctrine.
What are the three elements of promissory estoppel in Texas? - Answers 1) A promise, 2)
Foreseeable reliance by the promisor, 3) Substantial reliance by the promisee to their detriment.
