CON 1100V UNIT 3 UPDATED ACTUAL
Exam Questions and CORRECT Answers
4 Essential Elements in Contracting include: - CORRECT ANSWER - 1. Capacity
2. Mutual Assent
3. Consideration
4. Lawful Purpose
Federal Acquisition Regulation (FAR) is: - CORRECT ANSWER - a mutually binding legal
relationship obligating the seller to provide supplies/services, and the buyer to pay for them
(FAR 2.101).
Capacity refers to: - CORRECT ANSWER - legal competence of people to enter valid
contracts.
Once legally bound to the contract, parties must have the capacity to: - CORRECT
ANSWER - understand and appreciate the terms of the contract.
Anyone over the age of 18, who is of sound mind, has the capacity to: - CORRECT
ANSWER - enter into rental agreement.
Legal Incapacity/Incompetence are: - CORRECT ANSWER - the legal doctrines employed to
protect parties who lack the ability to understand the terms of an agreement.
Mutual Assent occurs when: - CORRECT ANSWER - both parties of an apartment rental
agreement have the same contract and must exercise due diligence to ensure they understand
terms/conditions.
Consideration is: - CORRECT ANSWER - something of value that a promisor receives from a
promisee in return for his/her offer.
, Consideration can take 4 forms: - CORRECT ANSWER - 1. Money
2. Promise
3. Action/Nonaction
4. Property
Without consideration, a contract is: - CORRECT ANSWER - not enforceable.
In an apartment scenario, consideration lodges in accordance with the terms & conditions of -
CORRECT ANSWER - the contract and monthly rent payment.
Lawful Purpose occurs when: - CORRECT ANSWER - a contract is unenforceable if any
term of an agreement contrasts public policy.
Public/Government Policies involve: - CORRECT ANSWER - 1. Public Morals
2. Health
3. Safety
4. Welfare
A contract CANNOT be enforced if: - CORRECT ANSWER - 1. Any term of the agreement
is against the law.
2. Enforcement of any term of the agreement would harm the state or its citizens.
Types of Authority include: - CORRECT ANSWER - 1. Actual (eg: Expressed, Implied)
2. Apparent
Contracting Officers: - CORRECT ANSWER - 1. Enter into, administer, or terminate
contracts.
2. Make related determinations and findings.
3. May bind or obligate the Government only to the extent of authority delegated to them.
Exam Questions and CORRECT Answers
4 Essential Elements in Contracting include: - CORRECT ANSWER - 1. Capacity
2. Mutual Assent
3. Consideration
4. Lawful Purpose
Federal Acquisition Regulation (FAR) is: - CORRECT ANSWER - a mutually binding legal
relationship obligating the seller to provide supplies/services, and the buyer to pay for them
(FAR 2.101).
Capacity refers to: - CORRECT ANSWER - legal competence of people to enter valid
contracts.
Once legally bound to the contract, parties must have the capacity to: - CORRECT
ANSWER - understand and appreciate the terms of the contract.
Anyone over the age of 18, who is of sound mind, has the capacity to: - CORRECT
ANSWER - enter into rental agreement.
Legal Incapacity/Incompetence are: - CORRECT ANSWER - the legal doctrines employed to
protect parties who lack the ability to understand the terms of an agreement.
Mutual Assent occurs when: - CORRECT ANSWER - both parties of an apartment rental
agreement have the same contract and must exercise due diligence to ensure they understand
terms/conditions.
Consideration is: - CORRECT ANSWER - something of value that a promisor receives from a
promisee in return for his/her offer.
, Consideration can take 4 forms: - CORRECT ANSWER - 1. Money
2. Promise
3. Action/Nonaction
4. Property
Without consideration, a contract is: - CORRECT ANSWER - not enforceable.
In an apartment scenario, consideration lodges in accordance with the terms & conditions of -
CORRECT ANSWER - the contract and monthly rent payment.
Lawful Purpose occurs when: - CORRECT ANSWER - a contract is unenforceable if any
term of an agreement contrasts public policy.
Public/Government Policies involve: - CORRECT ANSWER - 1. Public Morals
2. Health
3. Safety
4. Welfare
A contract CANNOT be enforced if: - CORRECT ANSWER - 1. Any term of the agreement
is against the law.
2. Enforcement of any term of the agreement would harm the state or its citizens.
Types of Authority include: - CORRECT ANSWER - 1. Actual (eg: Expressed, Implied)
2. Apparent
Contracting Officers: - CORRECT ANSWER - 1. Enter into, administer, or terminate
contracts.
2. Make related determinations and findings.
3. May bind or obligate the Government only to the extent of authority delegated to them.
