BUL 4421 FINAL - FAU GENDLER
QUESTIONS AND ANSWERS
CHAPTER 13: Introduction to Contracts - Correct Answers -CHAPTER 13: Introduction
to Contracts
Four Elements of a Contract: CLAC - Correct Answers -1. Contractual Capacity
2. Legal Object
3. Agreement (offer, acceptance)
4. Consideration
Contract - Correct Answers --A promise or set of legally enforceable promises for the
breach of which the law gives a remedy or the performance of which the law in some
way recognizes a duty.
Agreement - Correct Answers -(Offer & Acceptance)
Offer by Oferror to enter into a contract and acceptance of terms by offeree.
Consideration - Correct Answers -i. The bargained-for exchange or what each party
gets in exchange for his or her promise under the contract
(The something for something)
Contractual capacity - Correct Answers -i. The legal ability to enter into a binding
agreement
Legal Object - Correct Answers -subject matter of the contract. Cannot be illegal or
against public policy in order to be enforceable
Objective Theory of Contracts is the - Correct Answers -basis of contract law
Objective Theory of Contracts bases existence on - Correct Answers -Outward
manifestations of intent
Objective Theory of Contracts bases interpretation on - Correct Answers -how a
reasonable person would interpret it.
________ of parties is not usually relevant under objective theory of contracts - Correct
Answers -subjective intent
t or f: subjective intent may be relevant under certain circumstances - Correct Answers -
true
,subjective intent may be relevant if - Correct Answers -a mutual misunderstanding b/t
parties exists and they did not come to a true meetings of minds; no contract exists
if there appears a a mutual misunderstanding - Correct Answers -look at each party
separately, interpret situation to determine whether parties really reached an agreement
in order to determine whether partied intended to enter into a contract, courts look at -
Correct Answers -their objective words and behavior and do not try to figure out what
they may have secretly intending
classification of contract determines - Correct Answers -when offeree is legally bound to
perform
Bilateral Contract = - Correct Answers -A promise + a promise.
-I'll pay you $1000 for you to paint my car.
-(My promise = $1000)
-(Your promise = Paint my car)
-Mutual exchange
Under bilateral contract, contract formed - Correct Answers -as soon as promise
exchanged
Unilateral Contract - Correct Answers --a promise + a requested action
-Offerror wants something *done, not a promise* for something to be done.
-ex; find dog and ill pay reward
under unilateral contract, contract formed - Correct Answers -once offerree begins
performance; offeror must give reasonable amt of time to finish before voiding contract
Express Contract - Correct Answers -The terms of the contract are all clearly set forth in
either written or spoken words.
ex; written agreement by dentist to perform work
Implied Contract - Correct Answers -Terms arise from conduct of the parties.
ex; dentist pulling tooth implies you will pay
3 conditions required for implied contracts (and recovery) - Correct Answers -1- benefits
conferred by plaintiff upon defendant
2- defendant has knowledge of benefit being bestowed on them, and
3- defendant retains benefit under circs which it would be unjust to do so without
payment
Void Contract - Correct Answers --Not a contract at all; unenforceable
-Either illegal or has some serious defect.
, Voidable Contract - Correct Answers --One or both of the parties has the ability to either
withdraw from the contract or enforce it.
if choosing to terminate a voidable contract, both parties must - Correct Answers -return
anything already exchanged under the agreement; restore to conditions before contract
contracts can be voided if - Correct Answers --entered into by a minor, fraud, or under
duress
-court attempting to protect person believed to have been taken advantage of
Lack of Genuine Assent (Defense) - Correct Answers --All contract elements are there
but one party was forced into contract through duress, fraud, misrepresentation.
-Acts as defense
Contract Lacks Proper Form (Defense) - Correct Answers -Writing must meet a certain
criteria must exist for a contract to be legally binding.
II. CHAPTER 14: Agreement - Correct Answers -II. CHAPTER 14: Agreement
Elements of Offer (4): - Correct Answers -1. Intent to be bound by acceptance
2. Definite and certain terms
3. Communication to the offeree
4. Acceptance
Material Terms include (5):
(Considered Definite and Certain if all are there). - Correct Answers -1. Subject matter
2. Quality
3. Price
4. Quantity
5. Named parties
Termination of the offer can happen in 5 ways - Correct Answers --revocation
-rejection or counteroffer
-death of incapacity of the offeror
-destruction or subsequent illegality of subject matter
-lapse of time or failure of another condition specified in the offer
Revocation - Correct Answers -i. The offeror can cancel the offer at any time, regardless
of how long it was said to be open
ii. Becomes effective when the offeree receives it, and should deliver personally if
important to be known
Exceptions to revocation - Correct Answers -option contract and detrimental reliance
QUESTIONS AND ANSWERS
CHAPTER 13: Introduction to Contracts - Correct Answers -CHAPTER 13: Introduction
to Contracts
Four Elements of a Contract: CLAC - Correct Answers -1. Contractual Capacity
2. Legal Object
3. Agreement (offer, acceptance)
4. Consideration
Contract - Correct Answers --A promise or set of legally enforceable promises for the
breach of which the law gives a remedy or the performance of which the law in some
way recognizes a duty.
Agreement - Correct Answers -(Offer & Acceptance)
Offer by Oferror to enter into a contract and acceptance of terms by offeree.
Consideration - Correct Answers -i. The bargained-for exchange or what each party
gets in exchange for his or her promise under the contract
(The something for something)
Contractual capacity - Correct Answers -i. The legal ability to enter into a binding
agreement
Legal Object - Correct Answers -subject matter of the contract. Cannot be illegal or
against public policy in order to be enforceable
Objective Theory of Contracts is the - Correct Answers -basis of contract law
Objective Theory of Contracts bases existence on - Correct Answers -Outward
manifestations of intent
Objective Theory of Contracts bases interpretation on - Correct Answers -how a
reasonable person would interpret it.
________ of parties is not usually relevant under objective theory of contracts - Correct
Answers -subjective intent
t or f: subjective intent may be relevant under certain circumstances - Correct Answers -
true
,subjective intent may be relevant if - Correct Answers -a mutual misunderstanding b/t
parties exists and they did not come to a true meetings of minds; no contract exists
if there appears a a mutual misunderstanding - Correct Answers -look at each party
separately, interpret situation to determine whether parties really reached an agreement
in order to determine whether partied intended to enter into a contract, courts look at -
Correct Answers -their objective words and behavior and do not try to figure out what
they may have secretly intending
classification of contract determines - Correct Answers -when offeree is legally bound to
perform
Bilateral Contract = - Correct Answers -A promise + a promise.
-I'll pay you $1000 for you to paint my car.
-(My promise = $1000)
-(Your promise = Paint my car)
-Mutual exchange
Under bilateral contract, contract formed - Correct Answers -as soon as promise
exchanged
Unilateral Contract - Correct Answers --a promise + a requested action
-Offerror wants something *done, not a promise* for something to be done.
-ex; find dog and ill pay reward
under unilateral contract, contract formed - Correct Answers -once offerree begins
performance; offeror must give reasonable amt of time to finish before voiding contract
Express Contract - Correct Answers -The terms of the contract are all clearly set forth in
either written or spoken words.
ex; written agreement by dentist to perform work
Implied Contract - Correct Answers -Terms arise from conduct of the parties.
ex; dentist pulling tooth implies you will pay
3 conditions required for implied contracts (and recovery) - Correct Answers -1- benefits
conferred by plaintiff upon defendant
2- defendant has knowledge of benefit being bestowed on them, and
3- defendant retains benefit under circs which it would be unjust to do so without
payment
Void Contract - Correct Answers --Not a contract at all; unenforceable
-Either illegal or has some serious defect.
, Voidable Contract - Correct Answers --One or both of the parties has the ability to either
withdraw from the contract or enforce it.
if choosing to terminate a voidable contract, both parties must - Correct Answers -return
anything already exchanged under the agreement; restore to conditions before contract
contracts can be voided if - Correct Answers --entered into by a minor, fraud, or under
duress
-court attempting to protect person believed to have been taken advantage of
Lack of Genuine Assent (Defense) - Correct Answers --All contract elements are there
but one party was forced into contract through duress, fraud, misrepresentation.
-Acts as defense
Contract Lacks Proper Form (Defense) - Correct Answers -Writing must meet a certain
criteria must exist for a contract to be legally binding.
II. CHAPTER 14: Agreement - Correct Answers -II. CHAPTER 14: Agreement
Elements of Offer (4): - Correct Answers -1. Intent to be bound by acceptance
2. Definite and certain terms
3. Communication to the offeree
4. Acceptance
Material Terms include (5):
(Considered Definite and Certain if all are there). - Correct Answers -1. Subject matter
2. Quality
3. Price
4. Quantity
5. Named parties
Termination of the offer can happen in 5 ways - Correct Answers --revocation
-rejection or counteroffer
-death of incapacity of the offeror
-destruction or subsequent illegality of subject matter
-lapse of time or failure of another condition specified in the offer
Revocation - Correct Answers -i. The offeror can cancel the offer at any time, regardless
of how long it was said to be open
ii. Becomes effective when the offeree receives it, and should deliver personally if
important to be known
Exceptions to revocation - Correct Answers -option contract and detrimental reliance
