LGS 200 EXAM 2 CHARLYE ADAMS UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Agreement (Mutual Assent)
Answer:
MOST IMPORTANT PART OF CONTRACT must have offer and acceptance
Question:
2. what are the basic elements of a contract
Answer:
agreement, consideration, capacity, legality
Question:
3. bilateral contract
Answer:
promise for a promise "I promise to pay you $400 if you promise to deliver 400 widgets" communication
of acceptance is required
Question:
4. unilateral contract
Answer:
promise for an act "I promise to pay you $400 when you DELIVER 400 widgets communication of
acceptance is NOT required, only notification
Question:
5. intoxication (related to contracts)
Answer:
contract is voidable by intoxicated party as long as they can prove they were intoxicated
Question:
6. implied in fact contract
Answer:
a contract that is implied from conduct of parties rather than words ambulance takes you to hospital and is
expecting to be paid bc they saved your life
Question:
7. objective theory of contracts
Answer:
judged by reasonable person standard Would a reasonable person looking at the contract, think that the
parties intended to be bound by contract?
Question:
8. mirror image rule (common law contracts)
, Answer:
offeree must accept terms of offer exactly as stated. any change in terms automatically terminates the offer
Question:
9. counteroffer
Answer:
response by offerree that contains terms and conditions different from the offer
Question:
10. unilateral mistake of fact
Answer:
ONE party is mistaken about a material fact regarding subject matter of contract accidentally offers 5,000
for a 50,000 car
Question:
11. One Year Rule
Answer:
MODIFICATIONS-verbal contracts for less than 12 month contracts is fine, but if it is changed to MORE
THAN A YEAR, it must be in WRITING
Question:
12. article 2
Answer:
applies to SALE of goods
Question:
13. sale of goods
Answer:
a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money
consideration, called the price.
Question:
14. shipment contract
Answer:
title and risk of loss pass from seller to buyer AT SHIPMENT OUT default contract (if it does not specify)
is SHIPMENT
Question:
15. destination contract
Answer:
title and risk of loss pass from seller to buyer when goods are DELIVERED
Question:
16. title
Answer:
ownership interest
QUESTIONS AND CORRECT ANSWERS
Question:
1. Agreement (Mutual Assent)
Answer:
MOST IMPORTANT PART OF CONTRACT must have offer and acceptance
Question:
2. what are the basic elements of a contract
Answer:
agreement, consideration, capacity, legality
Question:
3. bilateral contract
Answer:
promise for a promise "I promise to pay you $400 if you promise to deliver 400 widgets" communication
of acceptance is required
Question:
4. unilateral contract
Answer:
promise for an act "I promise to pay you $400 when you DELIVER 400 widgets communication of
acceptance is NOT required, only notification
Question:
5. intoxication (related to contracts)
Answer:
contract is voidable by intoxicated party as long as they can prove they were intoxicated
Question:
6. implied in fact contract
Answer:
a contract that is implied from conduct of parties rather than words ambulance takes you to hospital and is
expecting to be paid bc they saved your life
Question:
7. objective theory of contracts
Answer:
judged by reasonable person standard Would a reasonable person looking at the contract, think that the
parties intended to be bound by contract?
Question:
8. mirror image rule (common law contracts)
, Answer:
offeree must accept terms of offer exactly as stated. any change in terms automatically terminates the offer
Question:
9. counteroffer
Answer:
response by offerree that contains terms and conditions different from the offer
Question:
10. unilateral mistake of fact
Answer:
ONE party is mistaken about a material fact regarding subject matter of contract accidentally offers 5,000
for a 50,000 car
Question:
11. One Year Rule
Answer:
MODIFICATIONS-verbal contracts for less than 12 month contracts is fine, but if it is changed to MORE
THAN A YEAR, it must be in WRITING
Question:
12. article 2
Answer:
applies to SALE of goods
Question:
13. sale of goods
Answer:
a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money
consideration, called the price.
Question:
14. shipment contract
Answer:
title and risk of loss pass from seller to buyer AT SHIPMENT OUT default contract (if it does not specify)
is SHIPMENT
Question:
15. destination contract
Answer:
title and risk of loss pass from seller to buyer when goods are DELIVERED
Question:
16. title
Answer:
ownership interest
