LSTD 2106 Test 2 Sipe QUESTIONS &
ANSWERS(RATED A+)
contract - ANSWERa promise or a set of promises which are enforceable by law
promise - ANSWERa firm agreement to perform an act or make a payment
written contract - ANSWERcontracts that the terms are in writing
oral contracts - ANSWERcontract that is verbally made
bi-lateral contract - ANSWERa contract that is a promise in exchange for a promise
uni-lateral contract - ANSWERa promise in exchange for a performance
(a reward contract)
expressed contract - ANSWERwhen parties knowingly and intentionally agree on
promises and performances of a contract
implied contract - ANSWERparties agree based on their actions not words (ordering
food at a restaurant, no promises of paying for food but its implied)
quasi-contract - ANSWERa contract that can be enforceable when its neither an
expressed or implied contract.
(an unconscious patient at a hospital receives treatment even though there is not
expressed or implied contract the hospital will still receive payment)
Offer must be - ANSWERclear-so they know whats being ,serious-must be intent,
and communicated-to see how a reasonable person would interpret it
Mutual Assent - ANSWERwhen two parties from and offer and an acceptance
Lucy v. Zehmer (1954) - ANSWERLucy offered Zehmer 50k for his farm while they
were at a bar. Lucy got Zehmer to put it in writing, which they modified several times.
discussed terms for 30-40 min and signed the napkin contract.
Lucy won the case because there was mutual assent and the business was talked
about long enough to not be considered joking.
Advertisements as Offers - ANSWERadvertisements are not offers but are
considered invitations
valid contract - ANSWERwhen a contract has the required elements
void contract - ANSWERwhen a contract is missing an element or has not been
formed legally
, voidable contract - ANSWERwhen the law gives one or more parties the right to
cancel the contract
Unenforceable Contract - ANSWERmay meet all requirements but one part asserts a
legal defense to performing the contract
sources of contract law - ANSWERstate common law and the statute UCC
state common law - ANSWERcontract for services
statute UCC - ANSWERcontract for goods or products
primary purpose test - ANSWERto decide which law the contract falls under
7 elements of a contract - ANSWEROffer, Acceptance, Consideration, Legality,
Capacity, Consent, writing
hybrid contract - ANSWERcontract involving goods and services
Offer - ANSWERa promise or commitment to perform a specified activity. (such as
selling goods at a certain price)
Offeror - ANSWERperson who makes the offer
Offeree - ANSWERperson who receives the offer
Acceptance - ANSWERofferee's expression of accepting the terms of the offer, but
only if its still an offer
Termination of an offer - ANSWERrevocation-offer is revoked before acceptance
rejection-Offer is rejected by offeree
Counter offer-Offeree proposes new offer
irrevocable offer - ANSWER1-offers in form of option contract
2-offer that offeree partially performed or
detrimentally relied on
3-so-called firm offers by a merchant under UCC
Termination by Operation of Law - ANSWER1-lapse of time (reasonable period of
time)
2-death or incapacity
3-destruction of subject matter before acceptance
ANSWERS(RATED A+)
contract - ANSWERa promise or a set of promises which are enforceable by law
promise - ANSWERa firm agreement to perform an act or make a payment
written contract - ANSWERcontracts that the terms are in writing
oral contracts - ANSWERcontract that is verbally made
bi-lateral contract - ANSWERa contract that is a promise in exchange for a promise
uni-lateral contract - ANSWERa promise in exchange for a performance
(a reward contract)
expressed contract - ANSWERwhen parties knowingly and intentionally agree on
promises and performances of a contract
implied contract - ANSWERparties agree based on their actions not words (ordering
food at a restaurant, no promises of paying for food but its implied)
quasi-contract - ANSWERa contract that can be enforceable when its neither an
expressed or implied contract.
(an unconscious patient at a hospital receives treatment even though there is not
expressed or implied contract the hospital will still receive payment)
Offer must be - ANSWERclear-so they know whats being ,serious-must be intent,
and communicated-to see how a reasonable person would interpret it
Mutual Assent - ANSWERwhen two parties from and offer and an acceptance
Lucy v. Zehmer (1954) - ANSWERLucy offered Zehmer 50k for his farm while they
were at a bar. Lucy got Zehmer to put it in writing, which they modified several times.
discussed terms for 30-40 min and signed the napkin contract.
Lucy won the case because there was mutual assent and the business was talked
about long enough to not be considered joking.
Advertisements as Offers - ANSWERadvertisements are not offers but are
considered invitations
valid contract - ANSWERwhen a contract has the required elements
void contract - ANSWERwhen a contract is missing an element or has not been
formed legally
, voidable contract - ANSWERwhen the law gives one or more parties the right to
cancel the contract
Unenforceable Contract - ANSWERmay meet all requirements but one part asserts a
legal defense to performing the contract
sources of contract law - ANSWERstate common law and the statute UCC
state common law - ANSWERcontract for services
statute UCC - ANSWERcontract for goods or products
primary purpose test - ANSWERto decide which law the contract falls under
7 elements of a contract - ANSWEROffer, Acceptance, Consideration, Legality,
Capacity, Consent, writing
hybrid contract - ANSWERcontract involving goods and services
Offer - ANSWERa promise or commitment to perform a specified activity. (such as
selling goods at a certain price)
Offeror - ANSWERperson who makes the offer
Offeree - ANSWERperson who receives the offer
Acceptance - ANSWERofferee's expression of accepting the terms of the offer, but
only if its still an offer
Termination of an offer - ANSWERrevocation-offer is revoked before acceptance
rejection-Offer is rejected by offeree
Counter offer-Offeree proposes new offer
irrevocable offer - ANSWER1-offers in form of option contract
2-offer that offeree partially performed or
detrimentally relied on
3-so-called firm offers by a merchant under UCC
Termination by Operation of Law - ANSWER1-lapse of time (reasonable period of
time)
2-death or incapacity
3-destruction of subject matter before acceptance
