BUL 4421 EXAM 2 QUESTIONS AND
ANSWERS
Elements of a Contract - Answer-offer, acceptance, consideration
offerer - Answer-A person who makes an offer.
offeree - Answer-A person to whom an offer is made.
Consideration - Answer-The bargained-for exchange; what each party gets in exchange for his or her
promise under a contract.
Bilateral Contract - Answer-promise for a promise
Unilateral Contract - Answer-promise in exchange for an act
Executed - Answer-both ends of the contract complied with terms
Executory - Answer-a contract that has not been fully performed on either side
Void Contract - Answer-A contract having no legal force or binding effect.
, Voidable Contract - Answer-A contract that may be legally avoided at the option of one or both of the
parties.
Valid Contract - Answer-A contract that results when elements necessary for contract formation
(agreement, consideration, legal purpose, and contractual capacity) are present.
Unenforceable Contract - Answer-A valid contract rendered unenforceable by some statute or law.
Formal Contract - Answer-An agreement that by law requires a specific form for its validity.
informal (simple) contract - Answer-A contract that does not require a specified form or formality in
order to be valid.
Elements of an offer - Answer-1. serious intent by the offeror to be bound to an agreement
2. reasonably definite terms
3. communication to the offeree
intent - Answer-the intended purpose or goal of an action, especially in a contract
material terms - Answer-In a contract, the terms that allow a court to determine what the damages are
in the event that one of the parties breaches the contract; include the subject matter, quantity, price,
quality, and parties.
definite and certain - Answer-The requirement, under common law, that a contract must include and
clearly define all material terms.
Communication - Answer-in a contract, an offer made to the offeree or their agent.
ANSWERS
Elements of a Contract - Answer-offer, acceptance, consideration
offerer - Answer-A person who makes an offer.
offeree - Answer-A person to whom an offer is made.
Consideration - Answer-The bargained-for exchange; what each party gets in exchange for his or her
promise under a contract.
Bilateral Contract - Answer-promise for a promise
Unilateral Contract - Answer-promise in exchange for an act
Executed - Answer-both ends of the contract complied with terms
Executory - Answer-a contract that has not been fully performed on either side
Void Contract - Answer-A contract having no legal force or binding effect.
, Voidable Contract - Answer-A contract that may be legally avoided at the option of one or both of the
parties.
Valid Contract - Answer-A contract that results when elements necessary for contract formation
(agreement, consideration, legal purpose, and contractual capacity) are present.
Unenforceable Contract - Answer-A valid contract rendered unenforceable by some statute or law.
Formal Contract - Answer-An agreement that by law requires a specific form for its validity.
informal (simple) contract - Answer-A contract that does not require a specified form or formality in
order to be valid.
Elements of an offer - Answer-1. serious intent by the offeror to be bound to an agreement
2. reasonably definite terms
3. communication to the offeree
intent - Answer-the intended purpose or goal of an action, especially in a contract
material terms - Answer-In a contract, the terms that allow a court to determine what the damages are
in the event that one of the parties breaches the contract; include the subject matter, quantity, price,
quality, and parties.
definite and certain - Answer-The requirement, under common law, that a contract must include and
clearly define all material terms.
Communication - Answer-in a contract, an offer made to the offeree or their agent.
