LSTD 2106 Exam 2 QUESTIONS &
ANSWERS(RATED A+)
what is a contract - ANSWERan agreement (or set of promises) enforceable at law
what is an agreement - ANSWERany meeting of the minds resulting in a mutual
decision
what is a promise - ANSWERa guarantee that the speaker will do or refrain from
doing something in the future
what is a bilateral contract - ANSWERone promise in exchange for another promise
(offer in exchange for an offer)
what is an unilateral contract - ANSWERone promise from offeror in exchange for a
performance
what is an offeror - ANSWERperson extending an offer (decides terms)
what is an offeree - ANSWERone getting the offer
what is an expressed contract - ANSWERwe know exist by parties' spoken and
written words
what is an implied contract - ANSWERan agreement that is already known by both
parties' conduct
ex: hairdresser knowing to always touch up your roots with constant agreed upon
price
what is a valid contract - ANSWERan agreement that meets all of the laws'
requirements to be a contract
what is a void contract - ANSWERan agreement that the courts will automatically
throw out because it lacks legality
what is a voidable contract - ANSWERagreement is not automatically tossed out, but
we will give one of the parties the option to get out of it (lacks capacity or consent)
what is an unenforceable contract - ANSWERparties failed to put it in writing (lacks
writing element)
what are the sources of contract law - ANSWERuniform commercial code (UCC) and
state common law
what state has not adopted the UCC - ANSWERLouisiana
what is the UCC - ANSWERgoverns contracts for the sale of goods
,what is a good - ANSWERsomething that is tangible and movable
what does not count as a good - ANSWERintellectual property and land or things
permanently attached to land
what is state common law - ANSWERall other contracts (any sale of a non-good,
service, employment, etc.)
what is a hybrid contract - ANSWERsale of goods and services
what test is used under hybrid contracts - ANSWERthe primary purpose test aka
predominant thrust test
what are the four overarching questions when determining if it is a contract -
ANSWER1. did the parties form an enforceable contract
2. what were the terms and duties of the contract
3. did the defendant do what they promised
4. what remedy will we provide to compensate the plaintiff
what test do we use to determine if it was an enforceable contract - ANSWER7
elements test (has to meet each element)
what are the 7 elements of the 7 elements test - ANSWER1. offer
2. acceptance
3. consideration
4. legality
5. capacity
6. consent
7. writing
what does offer + acceptance = - ANSWERmutual assent
what is an offer - ANSWERa promise or commitment to do or refrain from doing
some specific activity
what criteria has to be met for it to be an offer - ANSWERhas to be clear and
communicated and have serious intent to be bound
what does clear mean - ANSWERboth parties know what is going on
what does serious intent to be bound mean - ANSWERevery statement can be
labeled as: 1. serious offer; or 2. invitation to deal; or 3. jest (joking)
what is a test what we can use to distinguish serious offers from jokes -
ANSWERobjective test (reasonable person test)
why can't we use a subjective test to distinguish an offer from a joke - ANSWERit is
problematic because we do not know what is going on is someone's head
, what is acceptance - ANSWERthe offeree's expression of agreement to the terms of
the offer
as long as the offer is floating out there, the offer can be _______ -
ANSWERaccepted
under the acceptance element, to be effective, the offeree has to do ______ -
ANSWERaccept the terms of the offer
what is it called when the offer goes away - ANSWERit is terminated
when can an offer terminate - ANSWERparties kill an offer or when the law steps in
and says there is no more offer
when can parties terminate an offer - ANSWERrevocation or when an action occurs
that goes against the offer
what is revocation - ANSWERofferor takes back the offer
what are the 2 situations when the offeror cannot revoke an offer - ANSWERpartial
performance/detrimental reliance or option contract
what is partial performance/detrimental reliance - ANSWERofferor has to give
offeree a reasonable amount of time
what is a option contract - ANSWERofferee purchases offeror's right to not revoke
the offer
how can the offeree party terminate an offer - ANSWERrejection or counteroffer
what is rejection - ANSWERofferee already rejected the offer, if offeree comes back
and tries to get it back, offeror can say no
what is a counteroffer - ANSWERproposed new terms based on offeror's original
offer
what rule goes along with a counteroffer - ANSWERmirror image rule: acceptance
has precisely the same terms
when can the offer be terminated by the operation of law - ANSWER- lapse of time
- death/incapacity (one of the parties dies)
-destruction of the subject
- supervening illegality
what is supervening illegality - ANSWERwhen someone makes an offer, while the
offer is floating around, part of the offer becomes illegal
is silence an acceptance - ANSWERno
ANSWERS(RATED A+)
what is a contract - ANSWERan agreement (or set of promises) enforceable at law
what is an agreement - ANSWERany meeting of the minds resulting in a mutual
decision
what is a promise - ANSWERa guarantee that the speaker will do or refrain from
doing something in the future
what is a bilateral contract - ANSWERone promise in exchange for another promise
(offer in exchange for an offer)
what is an unilateral contract - ANSWERone promise from offeror in exchange for a
performance
what is an offeror - ANSWERperson extending an offer (decides terms)
what is an offeree - ANSWERone getting the offer
what is an expressed contract - ANSWERwe know exist by parties' spoken and
written words
what is an implied contract - ANSWERan agreement that is already known by both
parties' conduct
ex: hairdresser knowing to always touch up your roots with constant agreed upon
price
what is a valid contract - ANSWERan agreement that meets all of the laws'
requirements to be a contract
what is a void contract - ANSWERan agreement that the courts will automatically
throw out because it lacks legality
what is a voidable contract - ANSWERagreement is not automatically tossed out, but
we will give one of the parties the option to get out of it (lacks capacity or consent)
what is an unenforceable contract - ANSWERparties failed to put it in writing (lacks
writing element)
what are the sources of contract law - ANSWERuniform commercial code (UCC) and
state common law
what state has not adopted the UCC - ANSWERLouisiana
what is the UCC - ANSWERgoverns contracts for the sale of goods
,what is a good - ANSWERsomething that is tangible and movable
what does not count as a good - ANSWERintellectual property and land or things
permanently attached to land
what is state common law - ANSWERall other contracts (any sale of a non-good,
service, employment, etc.)
what is a hybrid contract - ANSWERsale of goods and services
what test is used under hybrid contracts - ANSWERthe primary purpose test aka
predominant thrust test
what are the four overarching questions when determining if it is a contract -
ANSWER1. did the parties form an enforceable contract
2. what were the terms and duties of the contract
3. did the defendant do what they promised
4. what remedy will we provide to compensate the plaintiff
what test do we use to determine if it was an enforceable contract - ANSWER7
elements test (has to meet each element)
what are the 7 elements of the 7 elements test - ANSWER1. offer
2. acceptance
3. consideration
4. legality
5. capacity
6. consent
7. writing
what does offer + acceptance = - ANSWERmutual assent
what is an offer - ANSWERa promise or commitment to do or refrain from doing
some specific activity
what criteria has to be met for it to be an offer - ANSWERhas to be clear and
communicated and have serious intent to be bound
what does clear mean - ANSWERboth parties know what is going on
what does serious intent to be bound mean - ANSWERevery statement can be
labeled as: 1. serious offer; or 2. invitation to deal; or 3. jest (joking)
what is a test what we can use to distinguish serious offers from jokes -
ANSWERobjective test (reasonable person test)
why can't we use a subjective test to distinguish an offer from a joke - ANSWERit is
problematic because we do not know what is going on is someone's head
, what is acceptance - ANSWERthe offeree's expression of agreement to the terms of
the offer
as long as the offer is floating out there, the offer can be _______ -
ANSWERaccepted
under the acceptance element, to be effective, the offeree has to do ______ -
ANSWERaccept the terms of the offer
what is it called when the offer goes away - ANSWERit is terminated
when can an offer terminate - ANSWERparties kill an offer or when the law steps in
and says there is no more offer
when can parties terminate an offer - ANSWERrevocation or when an action occurs
that goes against the offer
what is revocation - ANSWERofferor takes back the offer
what are the 2 situations when the offeror cannot revoke an offer - ANSWERpartial
performance/detrimental reliance or option contract
what is partial performance/detrimental reliance - ANSWERofferor has to give
offeree a reasonable amount of time
what is a option contract - ANSWERofferee purchases offeror's right to not revoke
the offer
how can the offeree party terminate an offer - ANSWERrejection or counteroffer
what is rejection - ANSWERofferee already rejected the offer, if offeree comes back
and tries to get it back, offeror can say no
what is a counteroffer - ANSWERproposed new terms based on offeror's original
offer
what rule goes along with a counteroffer - ANSWERmirror image rule: acceptance
has precisely the same terms
when can the offer be terminated by the operation of law - ANSWER- lapse of time
- death/incapacity (one of the parties dies)
-destruction of the subject
- supervening illegality
what is supervening illegality - ANSWERwhen someone makes an offer, while the
offer is floating around, part of the offer becomes illegal
is silence an acceptance - ANSWERno
