Champions - Promulgated Contract Forms (100% correct answers)

Mutual Consent correct answers Often referred to as a "meeting of the minds." Five Elements Of A Valid and Enforceable Contract correct answers COLIC 1. Competent parties 2. Offer and acceptance (mutual consent) 3. Legal purpose 4. In writing (when required by law) 5. Consideration Unilateral Contract correct answers Only one party is obligated to perform. A unilateral contract is said to lack mutuality. Consideration correct answers Something of value given in exchange for a promise. Option correct answers An agreement between a buyer and seller or landlord and tenant. A seller, in exchange for some form of consideration (an option fee), gives the buyer the right to purchase the property at some preset price and terms for a period of time. Unenforceable Contract correct answers Is one that cannot be enforced due to some flaw in the contract, passage of time, or other issues that make enforcement impossible. Valid Contract correct answers One that meets all of the requirements of law. Void Contract correct answers Is invalid from the beginning, and has no effect on the parties. A contract to perform an illegal act is a ______ contract. Voidable Contract correct answers Is one that cannot be enforced against one or more of the parties. Most contracts entered into with minors are ________ at the option of the minor Competent Parties correct answers The general rule of law is that all parties to a contract have read it and understand it. Offer and Acceptance correct answers A valid contract must be based upon the consent of the parties. The contract must therefore reflect the intent and wishes of the parties. Mutual consent is often referred to as a "meeting of the minds." For a contract to exist, there must have been a meeting of the minds (offer and acceptance) between the parties. The determination of mutual consent is usually a question of fact and is completed by the process of offer and acceptance. Legal Purpose correct answers A contract for an illegal purpose is void, and the law treats the contract as if it were never created. An example of a void contract would be one to have somebody killed or to deliver illegal drugs.