BUL4421 Final exam Verified Exam Questions and Answers Latest
update 2026/2027
Question:
Contract
Answer:
Promise or 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 d duty
Question:
Agreement
Answer:
Offer by one party (offeror) to enter into a contract and an acceptance of the terms of the offer by the
other party (offeree)
Question:
Offeror
Answer:
Party that makes the initial offer
Question:
Offeree
Answer:
Party with the power to accept, reject, or counteroffer
- Party to whom an offer is made
Question:
Consideration
Answer:
Bargained-for exchange
- What each party gets in exchange for their promise under a contract
- What a person will receive in return for performing a contract obligation
Question:
Contractual Capacity
Answer:
Legal ability to enter into a binding agreement
,Question:
Groups that lack capacity
Answer:
Underage individuals
- people suffering from mental illness
- Intoxicated people
Question:
Objective theory of contracts
Answer:
Base the existence of a contract on the parties' outward manifestations of intent, basing its
interpretation on how a reasonable person would interpret it
Question:
Bilateral contract
Answer:
Promise in exchange for a promise
Question:
Unilateral contract
Answer:
An exchange of a promise for an act
- Offeror wants the offeree to do something, rather than promise something
Question:
Express contract
Answer:
Terms of the contract are clearly set forth in written or spoken words
Question:
Implied contract
Answer:
Terms of the contract arise from conduct of the parties, not words
Question:
Void contract
Answer:
No contract exist
- Objective is illegal or has some defect
, Question:
Voidable contract
Answer:
One or both of the parties have the ability to withdraw the contract, or enforce it
Question:
Option contract
Answer:
Offeree gives the offeror a piece of consideration in exchange for holding an offer open for a specified
period of time
Question:
Revocation
Answer:
Offeree revokes the offer at any time, unless the offeree enters into an optional contract with the
offeror
Question:
Rejection
Answer:
Way of terminating an offer by an offeree
Question:
Counteroffer
Answer:
Offer made by offeree to offeror relating to the same matter as the initial offer
- Propose a substituted bargain different from the one proposed by the offeror
- Terminates the original/initial offer
Question:
Destruction of subject matter
Answer:
If the subject matter of the offer is destroyed, the offer is terminated
Question:
Illegality of the subject matter
Answer:
If the subject becomes illegal, the offer is terminated
update 2026/2027
Question:
Contract
Answer:
Promise or 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 d duty
Question:
Agreement
Answer:
Offer by one party (offeror) to enter into a contract and an acceptance of the terms of the offer by the
other party (offeree)
Question:
Offeror
Answer:
Party that makes the initial offer
Question:
Offeree
Answer:
Party with the power to accept, reject, or counteroffer
- Party to whom an offer is made
Question:
Consideration
Answer:
Bargained-for exchange
- What each party gets in exchange for their promise under a contract
- What a person will receive in return for performing a contract obligation
Question:
Contractual Capacity
Answer:
Legal ability to enter into a binding agreement
,Question:
Groups that lack capacity
Answer:
Underage individuals
- people suffering from mental illness
- Intoxicated people
Question:
Objective theory of contracts
Answer:
Base the existence of a contract on the parties' outward manifestations of intent, basing its
interpretation on how a reasonable person would interpret it
Question:
Bilateral contract
Answer:
Promise in exchange for a promise
Question:
Unilateral contract
Answer:
An exchange of a promise for an act
- Offeror wants the offeree to do something, rather than promise something
Question:
Express contract
Answer:
Terms of the contract are clearly set forth in written or spoken words
Question:
Implied contract
Answer:
Terms of the contract arise from conduct of the parties, not words
Question:
Void contract
Answer:
No contract exist
- Objective is illegal or has some defect
, Question:
Voidable contract
Answer:
One or both of the parties have the ability to withdraw the contract, or enforce it
Question:
Option contract
Answer:
Offeree gives the offeror a piece of consideration in exchange for holding an offer open for a specified
period of time
Question:
Revocation
Answer:
Offeree revokes the offer at any time, unless the offeree enters into an optional contract with the
offeror
Question:
Rejection
Answer:
Way of terminating an offer by an offeree
Question:
Counteroffer
Answer:
Offer made by offeree to offeror relating to the same matter as the initial offer
- Propose a substituted bargain different from the one proposed by the offeror
- Terminates the original/initial offer
Question:
Destruction of subject matter
Answer:
If the subject matter of the offer is destroyed, the offer is terminated
Question:
Illegality of the subject matter
Answer:
If the subject becomes illegal, the offer is terminated
