LGS 200 EXAM 3 PRACTICE QUESTIONS AND
DETAILED SOLUTIONS
◉ Uniform Commercial Code.
Answer: Series of uniform state laws which deal with the sale of
goods by a merchant.
◉ Promisor.
Answer: Person who makes a promise
◉ Promisee.
Answer: Person to whom a promise is made
◉ Offeror.
Answer: Person who makes an offer
◉ Offeree.
Answer: Person to whom an offer is made
◉ Type of Contracts.
Answer: Bilateral, Unilateral, Expressed, Implied
,◉ Bilateral.
Answer: "a promise for a promise" - the contract exists at the
moment the promises are exchanged.
◉ Unilateral.
Answer: "a promise for an act" - offeree can only accept the contract
by completing the contract performance.
◉ Express.
Answer: The terms are fully stated, whether oral or in writing.
Example: written lease agreement
◉ Implied.
Answer: The conduct of the parties creates or defines some of the
terms of the contract. Example: dropping your laundry off at the dry
cleaner
◉ Valid.
Answer: Has all 4 elements for contract formation.
◉ Void.
, Answer: No contract at all - produces no legal obligation by either
party. Example: one party is insane.
◉ Voidable Contracts.
Answer: Valid contract which can be avoided at the option of one or
both of the parties. Example: contract with a minor, fraudulent
conditions.
◉ Agreement.
Answer: Offer and Acceptance
◉ Offer.
Answer: A promise or commitment to perform or refrain from
performing some specified act in the future
◉ Offer Requirements.
Answer: a. serious, objective intention by the offeror to enter into a
binding agreement as determined by outward, objective facts as
interpreted by a reasonable person.
b. the terms must be reasonably certain or definite
c. the offer must be communicated to the offeree
◉ Termination of the Offer.
DETAILED SOLUTIONS
◉ Uniform Commercial Code.
Answer: Series of uniform state laws which deal with the sale of
goods by a merchant.
◉ Promisor.
Answer: Person who makes a promise
◉ Promisee.
Answer: Person to whom a promise is made
◉ Offeror.
Answer: Person who makes an offer
◉ Offeree.
Answer: Person to whom an offer is made
◉ Type of Contracts.
Answer: Bilateral, Unilateral, Expressed, Implied
,◉ Bilateral.
Answer: "a promise for a promise" - the contract exists at the
moment the promises are exchanged.
◉ Unilateral.
Answer: "a promise for an act" - offeree can only accept the contract
by completing the contract performance.
◉ Express.
Answer: The terms are fully stated, whether oral or in writing.
Example: written lease agreement
◉ Implied.
Answer: The conduct of the parties creates or defines some of the
terms of the contract. Example: dropping your laundry off at the dry
cleaner
◉ Valid.
Answer: Has all 4 elements for contract formation.
◉ Void.
, Answer: No contract at all - produces no legal obligation by either
party. Example: one party is insane.
◉ Voidable Contracts.
Answer: Valid contract which can be avoided at the option of one or
both of the parties. Example: contract with a minor, fraudulent
conditions.
◉ Agreement.
Answer: Offer and Acceptance
◉ Offer.
Answer: A promise or commitment to perform or refrain from
performing some specified act in the future
◉ Offer Requirements.
Answer: a. serious, objective intention by the offeror to enter into a
binding agreement as determined by outward, objective facts as
interpreted by a reasonable person.
b. the terms must be reasonably certain or definite
c. the offer must be communicated to the offeree
◉ Termination of the Offer.
