Accounting 215 Final Review Exam
3 Questions And Accurate Answers.
Express Contract - Answer Contracts that are stated in words or is written
Executory Contract - Answer A contract that has not been fully performed on one side
Executed Contract - Answer A contract that has been fully performed by both parties
Offeree - Answer Party to whom an offer was made
Offeror - Answer Party making an offer
Promise
(Is it a contract by itself?) - Answer A promise is not legally enforceable in court unless it forms a
contract
Promisor - Answer Party making a promise
Promisee - Answer Party to whom a promise was made
Elements needed to prove a contract existed - Answer - Offer
- Acceptance
- Contractual Capacity
- Legality
Merchant (Defined by the Uniform Commercial Code) - Answer A person who deals in the goods
contracted for or holds himself out as having special knowledge or skill regarding the contracted goods
,Sources of Contracts - Answer Sources include Common law, State Statutory law, and the UCC.
What types of contracts does the UCC apply to? - Answer Applies to contracts made for merchants and
goods
Requirements for an Implied Contract - Answer - Plaintiff furnished a service or good
- Defendant knew or should have known Plaintiff wanted to contract
- Defendant had a chance to say "no" to the services
Bilateral Contract - Answer A promise is given in return for another promise as part of a contract.
Offeror makes a promise and offeree accepts by making a return promise
Unilateral Contract - Answer Offer can be accepted by acting without the need for a return promise
*Can be revoked before the party starts the act
Void Contract - Answer A contract that is not valid and is no contract at all.
Voidable Contract - Answer A contract that may be voidable at the option of one of the parties
Unenforceable Contract - Answer Contracts that cannot be enforced in court
Quasi Contract - Answer A legal fiction imposed by courts to prevent unjust enrichment
Carlyle v. Carbolic Smoke Ball Co. - Answer - Carbolic Smoke Ball Company offers an award of 100
pounds to anyone who used their product three times a week and still obtained influenza.
- Plaintiff used the smoke ball three times a week and still obtained influenza.
- Company claims their advertisement was not an offer.
- Court disagrees and states this was an offer for a unilateral contract. Plaintiff accepted offer by using
the smoke ball as directed.
, Lucy v. Zehmer - Answer -Lucy and Zehmer were drinking. Lucy wants to buy land from Zehmer. Zehmer
agrees to sell the land to Lucy and writes down the "contract" on a piece of paper/napkin.
- Zehmer then claims it was a "joke"
- Court says Zehmer and Lucy formed a legally enforceable contract
Objective intent the standard not "subjective"
Valid Offer requirements - Answer Must
- Be made with serious objective intent
- Be communicated to the offeree
- Be made with enough specific terms to hold the offeror liable
Objective Standard - Answer When determining the intent of the offeror, use what?
Types of Non-Offers - Answer - Expression of opinion
+ "I would like to"
- Statements of intention
+ "I plan"
- Solicitation of bids
+ "How much would you charge?"
Advertisements - Answer Generally not offers unless they limit the number of people that can accept
or the quantity that can be accepted (an invitation to bid)
Auction - Answer Generally not an offer but an "invitation to bid"
"With Reserve" (Auction) - Answer The offeror can rescind offer before gavel bangs
"Without Reserve" (Auction) - Answer The offeror cannot rescind their offer once bidding has started
3 Questions And Accurate Answers.
Express Contract - Answer Contracts that are stated in words or is written
Executory Contract - Answer A contract that has not been fully performed on one side
Executed Contract - Answer A contract that has been fully performed by both parties
Offeree - Answer Party to whom an offer was made
Offeror - Answer Party making an offer
Promise
(Is it a contract by itself?) - Answer A promise is not legally enforceable in court unless it forms a
contract
Promisor - Answer Party making a promise
Promisee - Answer Party to whom a promise was made
Elements needed to prove a contract existed - Answer - Offer
- Acceptance
- Contractual Capacity
- Legality
Merchant (Defined by the Uniform Commercial Code) - Answer A person who deals in the goods
contracted for or holds himself out as having special knowledge or skill regarding the contracted goods
,Sources of Contracts - Answer Sources include Common law, State Statutory law, and the UCC.
What types of contracts does the UCC apply to? - Answer Applies to contracts made for merchants and
goods
Requirements for an Implied Contract - Answer - Plaintiff furnished a service or good
- Defendant knew or should have known Plaintiff wanted to contract
- Defendant had a chance to say "no" to the services
Bilateral Contract - Answer A promise is given in return for another promise as part of a contract.
Offeror makes a promise and offeree accepts by making a return promise
Unilateral Contract - Answer Offer can be accepted by acting without the need for a return promise
*Can be revoked before the party starts the act
Void Contract - Answer A contract that is not valid and is no contract at all.
Voidable Contract - Answer A contract that may be voidable at the option of one of the parties
Unenforceable Contract - Answer Contracts that cannot be enforced in court
Quasi Contract - Answer A legal fiction imposed by courts to prevent unjust enrichment
Carlyle v. Carbolic Smoke Ball Co. - Answer - Carbolic Smoke Ball Company offers an award of 100
pounds to anyone who used their product three times a week and still obtained influenza.
- Plaintiff used the smoke ball three times a week and still obtained influenza.
- Company claims their advertisement was not an offer.
- Court disagrees and states this was an offer for a unilateral contract. Plaintiff accepted offer by using
the smoke ball as directed.
, Lucy v. Zehmer - Answer -Lucy and Zehmer were drinking. Lucy wants to buy land from Zehmer. Zehmer
agrees to sell the land to Lucy and writes down the "contract" on a piece of paper/napkin.
- Zehmer then claims it was a "joke"
- Court says Zehmer and Lucy formed a legally enforceable contract
Objective intent the standard not "subjective"
Valid Offer requirements - Answer Must
- Be made with serious objective intent
- Be communicated to the offeree
- Be made with enough specific terms to hold the offeror liable
Objective Standard - Answer When determining the intent of the offeror, use what?
Types of Non-Offers - Answer - Expression of opinion
+ "I would like to"
- Statements of intention
+ "I plan"
- Solicitation of bids
+ "How much would you charge?"
Advertisements - Answer Generally not offers unless they limit the number of people that can accept
or the quantity that can be accepted (an invitation to bid)
Auction - Answer Generally not an offer but an "invitation to bid"
"With Reserve" (Auction) - Answer The offeror can rescind offer before gavel bangs
"Without Reserve" (Auction) - Answer The offeror cannot rescind their offer once bidding has started
