BUL 4421 Final Exam Verified Exam Questions and Answers Latest
update 2026/2027
Question:
contract
Answer:
A promise or a set of promises for the breach of which the law gives a remedy, or the performance of
which the law in some way recognizes as a duty.
Question:
agreement
Answer:
consists of an offer by one party, called the offeror, to enter into a contract and an acceptance of the
terms of the offer by the other party, called the offeree
Question:
consideration
Answer:
The bargained-for exchange; what each party gets in exchange for his or her promise under a contract.
Question:
contractual capacity
Answer:
The legal ability to enter into contracts.
- Most adults over the age of majority (18) have capacity; those under the age of majority, people
suffering from mental illness, and sufficiently intoxicated persons do not
Question:
objective theory of contracts
Answer:
we base the existence of a contract on the parties' outward manifestations of intent and we base its
interpretation on how a reasonable person would interpret it
Question:
bilateral contract
Answer:
a promise exchanged for a promise. As soon as the promises exchanged, a contract is formed, and the
parties' legal obligations arise.
,Question:
Unilateral Contract
Answer:
requires performance in order to form a contract (i.e., a promise + a requested action). The offeror
wants the offeree to do something, not promise to do something.
Question:
express contract
Answer:
the terms of the contract are all clearly set forth in either written or spoken words
Question:
implied contract
Answer:
arise not from words but from the conduct of the parties
Question:
void contract
Answer:
not a contract at all. Either its object is illegal or it has some defect so serious it is not a contract
Question:
voidable contract
Answer:
one of both of the parties have the ability to either withdraw from the contract or enforce it
Question:
option contract
Answer:
the offeree gives the offeror consideration in exchange for the holding the offer upon for a specified
period of time.
Question:
Revocation
Answer:
the offeror can revoke the offer at any time unless the offer enters into an option contract with the
offeror. Revocation is effective when the offeror receives it.
, Question:
rejection
Answer:
another way to terminate the offer, effectuated by the offeror.
- Regardless of how long the offer was stated to be open, once the offeree rejects it, it is
terminated.
Question:
counteroffer
Answer:
an offer made by an offeree to his offeror relating to the same matter as the original and proposing a
substituted bargain differing from that proposed in the original offer.... A counteroffer terminates the
original offer
Question:
Destruction or subsequent illegality of the subject matter
Answer:
if the subject of the offer is destroyed or becomes illegal, the offer immediately terminates.
Question:
lapse of time
Answer:
if the offer states it will be held open for only a certain time, it terminated when that time expires.
- In the absence of such a time condition, the offer will expire after the lapse of a reasonable
amount of time.
Question:
Authorized means of acceptance
Answer:
if the offer specifies that acceptance must be communicated by a specific mode, that mode is the only
means for accepting the offer.
- If no mode of communication is specified in the offer, any reasonable means of acceptance is
valid.
Question:
For a unilateral contract...
Answer:
only performance by the offer constitutes a valid acceptance
update 2026/2027
Question:
contract
Answer:
A promise or a set of promises for the breach of which the law gives a remedy, or the performance of
which the law in some way recognizes as a duty.
Question:
agreement
Answer:
consists of an offer by one party, called the offeror, to enter into a contract and an acceptance of the
terms of the offer by the other party, called the offeree
Question:
consideration
Answer:
The bargained-for exchange; what each party gets in exchange for his or her promise under a contract.
Question:
contractual capacity
Answer:
The legal ability to enter into contracts.
- Most adults over the age of majority (18) have capacity; those under the age of majority, people
suffering from mental illness, and sufficiently intoxicated persons do not
Question:
objective theory of contracts
Answer:
we base the existence of a contract on the parties' outward manifestations of intent and we base its
interpretation on how a reasonable person would interpret it
Question:
bilateral contract
Answer:
a promise exchanged for a promise. As soon as the promises exchanged, a contract is formed, and the
parties' legal obligations arise.
,Question:
Unilateral Contract
Answer:
requires performance in order to form a contract (i.e., a promise + a requested action). The offeror
wants the offeree to do something, not promise to do something.
Question:
express contract
Answer:
the terms of the contract are all clearly set forth in either written or spoken words
Question:
implied contract
Answer:
arise not from words but from the conduct of the parties
Question:
void contract
Answer:
not a contract at all. Either its object is illegal or it has some defect so serious it is not a contract
Question:
voidable contract
Answer:
one of both of the parties have the ability to either withdraw from the contract or enforce it
Question:
option contract
Answer:
the offeree gives the offeror consideration in exchange for the holding the offer upon for a specified
period of time.
Question:
Revocation
Answer:
the offeror can revoke the offer at any time unless the offer enters into an option contract with the
offeror. Revocation is effective when the offeror receives it.
, Question:
rejection
Answer:
another way to terminate the offer, effectuated by the offeror.
- Regardless of how long the offer was stated to be open, once the offeree rejects it, it is
terminated.
Question:
counteroffer
Answer:
an offer made by an offeree to his offeror relating to the same matter as the original and proposing a
substituted bargain differing from that proposed in the original offer.... A counteroffer terminates the
original offer
Question:
Destruction or subsequent illegality of the subject matter
Answer:
if the subject of the offer is destroyed or becomes illegal, the offer immediately terminates.
Question:
lapse of time
Answer:
if the offer states it will be held open for only a certain time, it terminated when that time expires.
- In the absence of such a time condition, the offer will expire after the lapse of a reasonable
amount of time.
Question:
Authorized means of acceptance
Answer:
if the offer specifies that acceptance must be communicated by a specific mode, that mode is the only
means for accepting the offer.
- If no mode of communication is specified in the offer, any reasonable means of acceptance is
valid.
Question:
For a unilateral contract...
Answer:
only performance by the offer constitutes a valid acceptance
