LGS 200 Exam 3- Contracts Questions
With Correct Answers
4 essential elements of a valid contract - CORRECT ANSWER✔✔-
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Agreement- This requires an offer by the offeror and an acceptance of
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the offer by the offeree
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Consideration- A promise must be supported by a bargain for | | | | | | | | | |
consideration that is legally sufficient | | | |
Contractual capacity- The parties must have contractual capacity for the
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contract to be enforceable against them
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Lawful Object- The object of a contract must be lawful
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U.C.C. (Uniform Commercial Code) - CORRECT ANSWER✔✔--The UCC
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governs contractual transaction with goods and tangible objects (such
| | | | | | | | |
as a purchase of a car).
| | | | |
-A change to an offer with UCC may still form a binding contract
| | | | | | | | | | | | |
depending on the circumstances (whether it was a major deviation of a
| | | | | | | | | | | |
minor one). |
-Modification under the UCC, consideration is not a prerequisite = more
| | | | | | | | | | |
flexible
-Definiteness is not required | | |
-UCC only specifies that quantity is a must have term in its contracts.
| | | | | | | | | | | |
,-Other terms may be left open until known.
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-The statute of limitations is 4 years under the UCC
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Defenses to the Enforcement of a Contract - CORRECT ANSWER✔✔-
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Genuineness of assent | |
-The consent of the parties to create a contract must be genuine.
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Writing and form | |
-The law requires that certain contracts be in writing or in a certain
| | | | | | | | | | | | |
form.
Types of Contracts: Bilateral vs. Unilateral - CORRECT ANSWER✔✔-
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Bilateral Contract: A contract entered into by way of exchange of
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promises of the parties. | | |
"A promise for a promise"
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Unilateral Contract: A contract in which the offeror's offer can be
| | | | | | | | | | |
accepted only by the performance of an act by the offeree
| | | | | | | | | |
"A promise for an act"
| | | |
- A unilateral contract differs from a Bilateral Contract, in which the
| | | | | | | | | | | |
parties exchange mutual promises. Bilateral contracts are commonly
| | | | | | | |
used in business transactions; a sale of goods is a type of bilateral
| | | | | | | | | | | | |
contract.
, Valid Offers/ Elements - CORRECT ANSWER✔✔-The required elements
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of a valid offer are a genuine intent to contract, the offer must be
| | | | | | | | | | | | | |
properly communicated, and it must contain definite terms and
| | | | | | | | |
conditions. All offers must be definite and specific in their terms. The
| | | | | | | | | | | |
essential terms of the deal, such as price, manner of acceptance and
| | | | | | | | | | | |
timing, must be stated. An example is "I offer you my grandfather's
| | | | | | | | | | | |
antique watch for $200. You must tell me that you accept this offer in
| | | | | | | | | | | | | |
writing, and I must receive it before 2 p.m. on Tuesday, or I will offer it
| | | | | | | | | | | | | | | |
to my brother." Once an offer has been properly made, accepted and
| | | | | | | | | | | |
consideration exchanged, the parties have a binding contract. | | | | | | |
Termination of an offer - CORRECT ANSWER✔✔--Revocation of an offer:
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Withdrawal of an offer by the offeror that terminates the offer.
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-Rejection of an offer: Express words or conduct by the offeree that
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rejects an offer. Rejection terminates the offer.
| | | | | |
-Lapse of time | |
| -A stated time period after which an offer terminates after a reasonable
| | | | | | | | | | |
| time
| -If no time is stated, an offer terminates after a reasonable time.
| | | | | | | | | | |
-Termination by operation of law occurs if | | | | | |
-The subject matter of the offer is destroyed through no fault of either
| | | | | | | | | | | | | |
party.
| -Either the offeror or the offeree dies or becomes incompetent
| | | | | | | | |
| -The object of the offer is made illegal by law
| | | | | | | | |
With Correct Answers
4 essential elements of a valid contract - CORRECT ANSWER✔✔-
| | | | | | | | |
Agreement- This requires an offer by the offeror and an acceptance of
| | | | | | | | | | | |
the offer by the offeree
| | | |
Consideration- A promise must be supported by a bargain for | | | | | | | | | |
consideration that is legally sufficient | | | |
Contractual capacity- The parties must have contractual capacity for the
| | | | | | | | | |
contract to be enforceable against them
| | | | |
Lawful Object- The object of a contract must be lawful
| | | | | | | | |
U.C.C. (Uniform Commercial Code) - CORRECT ANSWER✔✔--The UCC
| | | | | | | |
governs contractual transaction with goods and tangible objects (such
| | | | | | | | |
as a purchase of a car).
| | | | |
-A change to an offer with UCC may still form a binding contract
| | | | | | | | | | | | |
depending on the circumstances (whether it was a major deviation of a
| | | | | | | | | | | |
minor one). |
-Modification under the UCC, consideration is not a prerequisite = more
| | | | | | | | | | |
flexible
-Definiteness is not required | | |
-UCC only specifies that quantity is a must have term in its contracts.
| | | | | | | | | | | |
,-Other terms may be left open until known.
| | | | | | |
-The statute of limitations is 4 years under the UCC
| | | | | | | | |
Defenses to the Enforcement of a Contract - CORRECT ANSWER✔✔-
| | | | | | | | |
Genuineness of assent | |
-The consent of the parties to create a contract must be genuine.
| | | | | | | | | | |
Writing and form | |
-The law requires that certain contracts be in writing or in a certain
| | | | | | | | | | | | |
form.
Types of Contracts: Bilateral vs. Unilateral - CORRECT ANSWER✔✔-
| | | | | | | |
Bilateral Contract: A contract entered into by way of exchange of
| | | | | | | | | | |
promises of the parties. | | |
"A promise for a promise"
| | | |
Unilateral Contract: A contract in which the offeror's offer can be
| | | | | | | | | | |
accepted only by the performance of an act by the offeree
| | | | | | | | | |
"A promise for an act"
| | | |
- A unilateral contract differs from a Bilateral Contract, in which the
| | | | | | | | | | | |
parties exchange mutual promises. Bilateral contracts are commonly
| | | | | | | |
used in business transactions; a sale of goods is a type of bilateral
| | | | | | | | | | | | |
contract.
, Valid Offers/ Elements - CORRECT ANSWER✔✔-The required elements
| | | | | | | |
of a valid offer are a genuine intent to contract, the offer must be
| | | | | | | | | | | | | |
properly communicated, and it must contain definite terms and
| | | | | | | | |
conditions. All offers must be definite and specific in their terms. The
| | | | | | | | | | | |
essential terms of the deal, such as price, manner of acceptance and
| | | | | | | | | | | |
timing, must be stated. An example is "I offer you my grandfather's
| | | | | | | | | | | |
antique watch for $200. You must tell me that you accept this offer in
| | | | | | | | | | | | | |
writing, and I must receive it before 2 p.m. on Tuesday, or I will offer it
| | | | | | | | | | | | | | | |
to my brother." Once an offer has been properly made, accepted and
| | | | | | | | | | | |
consideration exchanged, the parties have a binding contract. | | | | | | |
Termination of an offer - CORRECT ANSWER✔✔--Revocation of an offer:
| | | | | | | | |
Withdrawal of an offer by the offeror that terminates the offer.
| | | | | | | | | | |
-Rejection of an offer: Express words or conduct by the offeree that
| | | | | | | | | | | |
rejects an offer. Rejection terminates the offer.
| | | | | |
-Lapse of time | |
| -A stated time period after which an offer terminates after a reasonable
| | | | | | | | | | |
| time
| -If no time is stated, an offer terminates after a reasonable time.
| | | | | | | | | | |
-Termination by operation of law occurs if | | | | | |
-The subject matter of the offer is destroyed through no fault of either
| | | | | | | | | | | | | |
party.
| -Either the offeror or the offeree dies or becomes incompetent
| | | | | | | | |
| -The object of the offer is made illegal by law
| | | | | | | | |
