MGMT 209 Exam 2 || WITH CORRECT ANSWERS;
GRADED A+
contract law correct answers a system of rules for enforcing promises and breaking promises
contract law gives extent to which promises correct answers 1. Are legally enforceable
2. consequences of breaking the promises
societal level contracts correct answers provide a legal environment conductive to voluntary
exchanges
individual level contracts correct answers 1. the facilitation of mutually beneficial exchange
2. allocation of risks
2 functions of contracts correct answers 1. performance
2. risk allocation
contracts facilitate ____________ correct answers beneficial exchange
promise correct answers manifestation of intent to do or not do something
contract correct answers a legal agreement of the parties to do something not obligated to do
or to refrain from doing something legally entitled to
objective factors correct answers conduct of the party
the words spoken or written by the party
the circumstances surrounding the transactions
express contract correct answers stated orally, written contract
implied contract correct answers inferred from the conduct of the parties
quasi contracts correct answers not a true contract
applied in-law contract
rare
unconditional contract correct answers absolute, must preform contract
conditional contract correct answers no duty to perform if condition not met
offeror correct answers party making the offer
offeree correct answers party to whom the offer is made
promisor correct answers promise to do or not to do something
promisee correct answers party to whom the promise is made
bilateral contract correct answers mutual exchange of promise
, accepts by a promise
"promise for a promise'
unilateral contract correct answers one promisor
offeree accepts by performance
"promise for an act"
bilateral enforced correct answers once promise is made by the offeree
unilateral enforced correct answers once performance is performed by offeree;
performance is acceptance
executory contract correct answers not fully performed by either party
executed contract correct answers contract has been fully performed by all parties
partially executed correct answers executory; one party has completed work, the other party
has not
breach of contract correct answers the most common form of lawsuit
elements of a contract correct answers mutual agreement, consideration, capacity, legality,
genuine and real assent to the contract, some may be in writing
Texas element of a contract correct answers offer, acceptance, meeting of the minds, each
party must consent to the terms, if must be in writing - executed, delivered with the intent that
it be mutual and binding -, consideration, legality, capacity
agreement correct answers mutual assent
offer correct answers promise to enforce an agreement
non-offers correct answers preliminary negotiations, advertisements, auctions
ways to terminate an offer correct answers terminate by the person, termination by law
termination by the person correct answers revocation, rejection, lapse of time, counteroffer
termination by law correct answers intervening illegality, subject matter of offer is destroyed,
insanity or death of offeror or offeree
revocation correct answers offeror takes back the offer prior to acceptance by the offeree
rejection correct answers offeree says no
counteroffer correct answers 1. rejection 2. new offer 3. parties switch - offeror becomes the
offeree, offeree becomes the offeror
acceptance correct answers offeree's expression of assent/agreement to the exact terms of the
offer
GRADED A+
contract law correct answers a system of rules for enforcing promises and breaking promises
contract law gives extent to which promises correct answers 1. Are legally enforceable
2. consequences of breaking the promises
societal level contracts correct answers provide a legal environment conductive to voluntary
exchanges
individual level contracts correct answers 1. the facilitation of mutually beneficial exchange
2. allocation of risks
2 functions of contracts correct answers 1. performance
2. risk allocation
contracts facilitate ____________ correct answers beneficial exchange
promise correct answers manifestation of intent to do or not do something
contract correct answers a legal agreement of the parties to do something not obligated to do
or to refrain from doing something legally entitled to
objective factors correct answers conduct of the party
the words spoken or written by the party
the circumstances surrounding the transactions
express contract correct answers stated orally, written contract
implied contract correct answers inferred from the conduct of the parties
quasi contracts correct answers not a true contract
applied in-law contract
rare
unconditional contract correct answers absolute, must preform contract
conditional contract correct answers no duty to perform if condition not met
offeror correct answers party making the offer
offeree correct answers party to whom the offer is made
promisor correct answers promise to do or not to do something
promisee correct answers party to whom the promise is made
bilateral contract correct answers mutual exchange of promise
, accepts by a promise
"promise for a promise'
unilateral contract correct answers one promisor
offeree accepts by performance
"promise for an act"
bilateral enforced correct answers once promise is made by the offeree
unilateral enforced correct answers once performance is performed by offeree;
performance is acceptance
executory contract correct answers not fully performed by either party
executed contract correct answers contract has been fully performed by all parties
partially executed correct answers executory; one party has completed work, the other party
has not
breach of contract correct answers the most common form of lawsuit
elements of a contract correct answers mutual agreement, consideration, capacity, legality,
genuine and real assent to the contract, some may be in writing
Texas element of a contract correct answers offer, acceptance, meeting of the minds, each
party must consent to the terms, if must be in writing - executed, delivered with the intent that
it be mutual and binding -, consideration, legality, capacity
agreement correct answers mutual assent
offer correct answers promise to enforce an agreement
non-offers correct answers preliminary negotiations, advertisements, auctions
ways to terminate an offer correct answers terminate by the person, termination by law
termination by the person correct answers revocation, rejection, lapse of time, counteroffer
termination by law correct answers intervening illegality, subject matter of offer is destroyed,
insanity or death of offeror or offeree
revocation correct answers offeror takes back the offer prior to acceptance by the offeree
rejection correct answers offeree says no
counteroffer correct answers 1. rejection 2. new offer 3. parties switch - offeror becomes the
offeree, offeree becomes the offeror
acceptance correct answers offeree's expression of assent/agreement to the exact terms of the
offer
