Law of Contracts Exam 1 2024 Questions with 100% Correct Answers | Verified | Latest Update

1. offer: A proposal by one party to another intended to create a legally binding agreement. Terms of offer must be clear, definite and certain 2. acceptance: words signifying consent to the terms of an offer (thereby creating a contract) 3. void: a contract that has no legal force or effect because it does not meet the essential elements of a contract 4. essential elements of contracts: A contract is a set of promises that are made voluntarily, for a legal act, between legally competent parties for a consideration. To be legally enforcable it must be in writing. 5. bundle of rights: the concept of land ownership that includes ownership of all legal rights to the land- possession, control within the law, enjoyment, exclusion, and disposition 6. unilateral contract: A contract that results when an offer can only be accepted by the offeree's performance. 7. bilateral contract: A contract in which each party to the contract promises to perform some act or duty in exchange for the promise of the other party. 8. assignments: the transfer in writing of interest in a bond, mortgage, lease, or other instrument 9. delegation: a task or piece of work assigned to someone 10. legal value: Legal proof of authority or business transaction, enforceable rights or obligations, or the basis for a legal action 11. counteroffer: a new offer made in response to an offer received 12. novation: the replacement of one obligation by another by mutual agreement of both parties