MGMT 311 Exam 3 Hailey Texas A & M University-College Station | Questions with 100% Verified Answers | Latest Update

MGMT 311 Exam 3 Hailey Texas A & M University-College Station |
Questions with 100% Verified Answers | Latest Update
Question: Functions of contract law
Answer:
a. create expectations for future party agreements
b. court enforces contract if party doesn't live out promise... will provide a remedy of sorts
c. provides stability and predictability

Question: Contract
Answer:
An agreement that can be enforced by law between 2 or more parties who promise to do or not do act
now or in the future

Question: a breach of a promise leads to
Answer:
liability
- because parties have duties to each other

Question: Objective Theory of Contracts
Answer:
the intention of a party to enter a contract is shown by the objective, outward manifestation of their
approval as interpreted by a reasonable person

Question: Objective factors (3)
Answer:
1. words
2. actions AND
3. circumstances

Question: Weston vs. Cornell University
Answer:
The professor, Leslie Weston '80, horticulture, complained that Cornell did not grant her tenure after she
had taught for seven years, which she claimed was in violation of her contract. However, the court ruled
that the wording in Weston's contract did not necessarily imply she would be granted tenure.

Question: Elements of Valid contract (4)
Answer:

,1. Agreement
2. Consideration
3. Contractual Capacity
4. Legality (AND)

Question: 1. Agreement
Answer:
the mutual agreement of the parties must be shown by an offer AND acceptance

Question: 2. Consideration
Answer:
Legally sufficient and bargained for for consideration must be exchanged for contractual promises "price
of the promise"

Question: 3. Contractual Capacity
Answer:
each party to a contract must be seen as legally competent to enter it
- assumed unless: minor, intoxicated or mentally incompetent

Question: 4. Legality
Answer:
the purpose and subject matter of the contract must not be contrary to law or public policy

Question: Defenses to the Enforceability of a Contract (2)
Answer:
1. Voluntary consent
2. Form

Question: 1. voluntary consent
Answer:
consent must be voluntary not based on mistake or fraud or undue influence or duress

Question: 2. Form
Answer:
some contracts must be in writing and signed by the party being sued

Question: Offeror
Answer:
A person who makes an offer.

,Question: offeree
Answer:
A person to whom an offer is made.

Question: Bilateral Contract
Answer:
Promise for a promise
- reciprocal promises exchanged by parties ex: Haley wants to sell her watch for $100 - I promise to buy
she promises to sell

Question: Unilateral contract
Answer:
Promise for an act
- one party makes a promise in exchanged for the other party's actually performing/refraining from an act
- contract is formed after the act is performed ex: after you build my fence I'll pay you $1,000 (doing it
fulfills the contract)

Question: express contracts
Answer:
terms of agreement are fully and explicitly stated in oral or written words

Question: Implied Contract (3 steps)
Answer:
terms of agreement are inferred from the conduct of the parties
1. plaintiff must provide a service/good
2. plaintiff expected to be paid and defendant knew that
3. defendant had a chance to reject the goods/services but did not ex: you go to the doctor and and
serviced and are expected to pay for it

Question: executed contracts
Answer:
fully performed by both parties

Question: executory contract
Answer:
one or more parties has not performed

Question: formal vs informal

, Answer:
Formal - prepared, executed Informal - oral agreements or informally written

Question: Valid Contract Requirements (4)
Answer:
1. Agreement
2. Consideration
3. Contractual Capacity
4. Legality

Question: How could a valid contract be unenforceable?
Answer:
voluntary consent issue or didn't follow writing requirement

Question: Voidable contract
Answer:
A valid contract exists but one or more parties has the option of avoiding their contract obligation (walk
away)
- party with the option can choose to void or confirm it

Question: Void contract
Answer:
no contract at all
- agreement has no legal effect
- no legal obligation exists

Question: Agreement - requirements of the valid offer (3)
Answer:
1. serious intent AND
2. reasonably certain and definite terms AND
3. communication

Question: Intention
Answer:
offeror must show his or her serious intention to be bound by terms of the offer

Question: Lucy vs. Zehmer (1954)
Answer: