BUL 4421 Final Test with 100% Correct
Solutions
Four Elements of a Contract: CLAC - ✅✅ 1. Contractual Capacity
2. Legal Object
3. Agreement (offer, acceptance)
4. Consideration
Contract - ✅✅ -A promise or set of legally enforceable promises for the breach
of which the law gives a remedy or the performance of which the law in some way
recognizes a duty.
Agreement - ✅✅ Offer & acceptance
Offer by offeror to enter into a contract and acceptance of terms by offeree.
Consideration - ✅✅ The bargained-for exchange or what each party gets in
exchange for his or her promise under the contract
Contractual capacity - ✅✅ The legal ability to enter into a binding agreement
Legal Object - ✅✅ subject matter of the contract. Cannot be illegal or against
public policy in order to be enforceable
,Objective Theory of Contracts is the? - ✅✅ basis of contract law
Objective Theory of Contracts bases existence on? - ✅✅ Outward manifestations
of intent
Objective Theory of Contracts bases interpretation on? - ✅✅ how a reasonable
person would interpret it.
________ of parties is not usually relevant under objective theory of contracts -
✅✅ subjective intent
True or false
Subjective intent may be relevant under certain circumstances - ✅✅ true
Subjective intent may be relevant if? - ✅✅ a mutual misunderstanding b/t parties
exists and they did not come to a true meetings of minds; no contract exists
If there appears a mutual misunderstanding - ✅✅ look at each party separately,
interpret situation to determine whether parties really reached an agreement
In order to determine whether partied intended to enter into a contract, courts look
at - ✅✅ their objective words and behavior and do not try to figure out what they
may have secretly intending
Classification of contract determines - ✅✅ when offeree is legally bound to
perform
, Bilateral Contract = - ✅✅ A promise + a promise.
-I will pay you $1000 for you to paint my car.
- My promise = $1000
- Your promise = Paint my car
-Mutual exchange
Under bilateral contract, contract formed - ✅✅ as soon as promise exchanged
Unilateral Contract - ✅✅ -a promise plus a requested action
-Offeror wants something done, not a promise for something to be done.
-For example find dog and I will pay a reward.
Under unilateral contract, contract formed - ✅✅ once offerree begins
performance; offeror must give reasonable amount of time to finish before voiding
contract
Express Contract - ✅✅ The terms of the contract are all clearly set forth in either
written or spoken words.
Implied Contract - ✅✅ Terms arise from conduct of the parties.
For example dentist pulling tooth implies you will pay
3 conditions required for implied contracts (and recovery) - ✅✅ 1- benefits
conferred by plaintiff upon defendant
2- The defendant has knowledge of benefit being bestowed on them, and
3- The defendant retains benefit under circs which it would be unjust to do so
without payment
Solutions
Four Elements of a Contract: CLAC - ✅✅ 1. Contractual Capacity
2. Legal Object
3. Agreement (offer, acceptance)
4. Consideration
Contract - ✅✅ -A promise or set of legally enforceable promises for the breach
of which the law gives a remedy or the performance of which the law in some way
recognizes a duty.
Agreement - ✅✅ Offer & acceptance
Offer by offeror to enter into a contract and acceptance of terms by offeree.
Consideration - ✅✅ The bargained-for exchange or what each party gets in
exchange for his or her promise under the contract
Contractual capacity - ✅✅ The legal ability to enter into a binding agreement
Legal Object - ✅✅ subject matter of the contract. Cannot be illegal or against
public policy in order to be enforceable
,Objective Theory of Contracts is the? - ✅✅ basis of contract law
Objective Theory of Contracts bases existence on? - ✅✅ Outward manifestations
of intent
Objective Theory of Contracts bases interpretation on? - ✅✅ how a reasonable
person would interpret it.
________ of parties is not usually relevant under objective theory of contracts -
✅✅ subjective intent
True or false
Subjective intent may be relevant under certain circumstances - ✅✅ true
Subjective intent may be relevant if? - ✅✅ a mutual misunderstanding b/t parties
exists and they did not come to a true meetings of minds; no contract exists
If there appears a mutual misunderstanding - ✅✅ look at each party separately,
interpret situation to determine whether parties really reached an agreement
In order to determine whether partied intended to enter into a contract, courts look
at - ✅✅ their objective words and behavior and do not try to figure out what they
may have secretly intending
Classification of contract determines - ✅✅ when offeree is legally bound to
perform
, Bilateral Contract = - ✅✅ A promise + a promise.
-I will pay you $1000 for you to paint my car.
- My promise = $1000
- Your promise = Paint my car
-Mutual exchange
Under bilateral contract, contract formed - ✅✅ as soon as promise exchanged
Unilateral Contract - ✅✅ -a promise plus a requested action
-Offeror wants something done, not a promise for something to be done.
-For example find dog and I will pay a reward.
Under unilateral contract, contract formed - ✅✅ once offerree begins
performance; offeror must give reasonable amount of time to finish before voiding
contract
Express Contract - ✅✅ The terms of the contract are all clearly set forth in either
written or spoken words.
Implied Contract - ✅✅ Terms arise from conduct of the parties.
For example dentist pulling tooth implies you will pay
3 conditions required for implied contracts (and recovery) - ✅✅ 1- benefits
conferred by plaintiff upon defendant
2- The defendant has knowledge of benefit being bestowed on them, and
3- The defendant retains benefit under circs which it would be unjust to do so
without payment
