BLAW Test 3
What law governs contracts? - CORRECT ANSWER-State common law of
contracts (appellate court decisions), Uniform Commercial Code (UCC adopted
by all states)
Uniform Commercial Code (UCC adopted by all states) - CORRECT
ANSWER-Applies to contracts for sale and lease of goods
Contract - CORRECT ANSWER-An agreement that a judge would enforce
Elements: Agreement, Consideration, Capacity, Legality
Agreement - CORRECT ANSWER-Offer and Acceptance
Consideration - CORRECT ANSWER-Exchange of value (we both get
something)
Capacity - CORRECT ANSWER-Both pirates of contract were both mentally
capable to enter a contract
Legality - CORRECT ANSWER-Subject matter of contract must be legal
What Is and Isn't required - CORRECT ANSWER-Handshake isn't required,
writing usually isn't required, exchange of money isn't required, party cant cancel
a contract without the others consent
Statute of Frauds - CORRECT ANSWER-These contracts must be in writing to
be enforced by a court
Sale of land (house, commercial office building, land)
Contract which can't be completed in a year
Promise to stand behind the debt of another (parent paying for what the kid owes
for apartment)
Sale of goods greater than $500
Satisfying the statute of frauds - CORRECT ANSWER-1. Who must sign the
contract?
, Person against whom it is used
2. Can the contract be modified
Yes, in writing (sign by both parties)
Parol Evidence Rule - CORRECT ANSWER-Oral terms (before or at time of
written contract) that contradict the written contract will not be allowed as
evidence to alter a written contract (if you put it in writing then everything else
said allowed doesn't apply)
Unless the written terms of the contract are ambiguous (then you can go to the
discussions to solve the ambiguity)
Types of Contracts - CORRECT ANSWER-Bilateral, Unilateral, Express, Implied,
Executed, Executory, Void, Voidable
Bilateral - CORRECT ANSWER-Acceptance is a promise, which forms the
contract. (2 promises creates enforceable contract)
Unilateral - CORRECT ANSWER-Acceptance is a completed act, which forms
the contract (1 promise followed by one act creates contract)
Ex. Bring me my missing dog and I will give you $1,000 once I get my dog
Express - CORRECT ANSWER-Specifically stated terms, may be oral or written
(clearly agreed on what they're doing)
Implied - CORRECT ANSWER-Implied because of conduct of the parties, not
specifically stated (kid mowed for $40 last summer and you imply it's also $40
this summer)
Executed - CORRECT ANSWER-Fully performed by both parties (it's done)
Executory - CORRECT ANSWER-Not fully performed (not done yet, still
remodeling bathroom so I haven't give title to car yet)
Void - CORRECT ANSWER-Not a contract (agreement about an illegal subject)
Voidable - CORRECT ANSWER-May be rescinded or canceled at the option of
one of both parties (contract by minor; 14 yr old signs contract)
What law governs contracts? - CORRECT ANSWER-State common law of
contracts (appellate court decisions), Uniform Commercial Code (UCC adopted
by all states)
Uniform Commercial Code (UCC adopted by all states) - CORRECT
ANSWER-Applies to contracts for sale and lease of goods
Contract - CORRECT ANSWER-An agreement that a judge would enforce
Elements: Agreement, Consideration, Capacity, Legality
Agreement - CORRECT ANSWER-Offer and Acceptance
Consideration - CORRECT ANSWER-Exchange of value (we both get
something)
Capacity - CORRECT ANSWER-Both pirates of contract were both mentally
capable to enter a contract
Legality - CORRECT ANSWER-Subject matter of contract must be legal
What Is and Isn't required - CORRECT ANSWER-Handshake isn't required,
writing usually isn't required, exchange of money isn't required, party cant cancel
a contract without the others consent
Statute of Frauds - CORRECT ANSWER-These contracts must be in writing to
be enforced by a court
Sale of land (house, commercial office building, land)
Contract which can't be completed in a year
Promise to stand behind the debt of another (parent paying for what the kid owes
for apartment)
Sale of goods greater than $500
Satisfying the statute of frauds - CORRECT ANSWER-1. Who must sign the
contract?
, Person against whom it is used
2. Can the contract be modified
Yes, in writing (sign by both parties)
Parol Evidence Rule - CORRECT ANSWER-Oral terms (before or at time of
written contract) that contradict the written contract will not be allowed as
evidence to alter a written contract (if you put it in writing then everything else
said allowed doesn't apply)
Unless the written terms of the contract are ambiguous (then you can go to the
discussions to solve the ambiguity)
Types of Contracts - CORRECT ANSWER-Bilateral, Unilateral, Express, Implied,
Executed, Executory, Void, Voidable
Bilateral - CORRECT ANSWER-Acceptance is a promise, which forms the
contract. (2 promises creates enforceable contract)
Unilateral - CORRECT ANSWER-Acceptance is a completed act, which forms
the contract (1 promise followed by one act creates contract)
Ex. Bring me my missing dog and I will give you $1,000 once I get my dog
Express - CORRECT ANSWER-Specifically stated terms, may be oral or written
(clearly agreed on what they're doing)
Implied - CORRECT ANSWER-Implied because of conduct of the parties, not
specifically stated (kid mowed for $40 last summer and you imply it's also $40
this summer)
Executed - CORRECT ANSWER-Fully performed by both parties (it's done)
Executory - CORRECT ANSWER-Not fully performed (not done yet, still
remodeling bathroom so I haven't give title to car yet)
Void - CORRECT ANSWER-Not a contract (agreement about an illegal subject)
Voidable - CORRECT ANSWER-May be rescinded or canceled at the option of
one of both parties (contract by minor; 14 yr old signs contract)
