UNIT 5 CONTRACTS CONTRACT FORMATION
QUIZZES WITH COMPLETE SOLUTION.
Contract ANS - Promises, set of promises, enforceable by law
Types of Contracts ANS - Implied
Expressed
Implied in Fact Contracts ANS - i. contract created by conduct
ii. behavior reflects intention
Implied in Law contracts ANS - contract created in court
Expressed Contracts ANS - written/oral contract
Reasonable person standard ANS - determines whether another person would believe a contract was
formed, regardless of intent.
- ex. Lucy v Zehmer
Unilateral Contract ANS - promise for an act
- ex. I will pay you $500 if you run across the Mackinaw bridge without stopping
- Must accept by performance, not mere preparation
- Once someone begins the performance the offer becomes irrevocable making it an option contract
Bilateral Contract ANS - promise for a promise
- ex.I promise to pay you $200 if you fix my car stereo
- Can accept by act or words
Formation of a Contract ANS - Offer + Acceptance + Consideration
Offer ANS - - Manifestation of willingness to enter into a bargain that justifies another person to
believe that assent is invited and conclude it
- a "yes-able" proposition
Elements of an offer ANS - Communication
Commitment
Definite terms
Communication (Offer) ANS - Offeror relayed a message and offeree recieved message
Commitment ANS - Offeror demonstrates a willingness to be bound by contract
, Definite Terms ANS - all important terms of the contract are specified
Social Invitations ANS - In these situations, promises are not enforceable because there is no real
commitment to K.
- exception: must be shown there are legal ramifications
Ads ANS - General Rule:
Not offers because they are not specific enough, there are too many offerees, and a limited supply
- exception: Must be clear, definite, and explicit and leave nothing open for negotiation.
Determining intent to be bound by Contract ANS - i. is contract usually in writing?
ii. does it need formal writing for full expression?
iii. does it have few or many details?
iv. is the amount large or small?
v. is the contract common or unusual?
vi. are some of the contracts details unresolved?
vii. does the contract negotiations show that writing was discussed or contemplated?
Professional words ANS - usually not offers because they are too general and not definite
- exception: Can become offers if words go beyond comfort
Acceptance ANS - To manifest assent to an offer
Elements of Acceptance ANS - Communication
Absolute and Unequivocal
Responsive
Communication (Acceptance) ANS - Offeree relayed a message and offeror recieved message
Absolute/Unequivocal ANS - Offeree expresses willingness to be bound by contract proposed by
offeror.
Responsive ANS - acceptance must mirror the terms of the offer
Silence as Acceptance ANS - generally no acceptance, but it can in certain situations.
Mode of Acceptance ANS - i. Offeror is the master of the offer so they decide how offer must be
accepted
ii. If not specified:
1.Act (unilateral) or
2.Promise (bilateral); AND
QUIZZES WITH COMPLETE SOLUTION.
Contract ANS - Promises, set of promises, enforceable by law
Types of Contracts ANS - Implied
Expressed
Implied in Fact Contracts ANS - i. contract created by conduct
ii. behavior reflects intention
Implied in Law contracts ANS - contract created in court
Expressed Contracts ANS - written/oral contract
Reasonable person standard ANS - determines whether another person would believe a contract was
formed, regardless of intent.
- ex. Lucy v Zehmer
Unilateral Contract ANS - promise for an act
- ex. I will pay you $500 if you run across the Mackinaw bridge without stopping
- Must accept by performance, not mere preparation
- Once someone begins the performance the offer becomes irrevocable making it an option contract
Bilateral Contract ANS - promise for a promise
- ex.I promise to pay you $200 if you fix my car stereo
- Can accept by act or words
Formation of a Contract ANS - Offer + Acceptance + Consideration
Offer ANS - - Manifestation of willingness to enter into a bargain that justifies another person to
believe that assent is invited and conclude it
- a "yes-able" proposition
Elements of an offer ANS - Communication
Commitment
Definite terms
Communication (Offer) ANS - Offeror relayed a message and offeree recieved message
Commitment ANS - Offeror demonstrates a willingness to be bound by contract
, Definite Terms ANS - all important terms of the contract are specified
Social Invitations ANS - In these situations, promises are not enforceable because there is no real
commitment to K.
- exception: must be shown there are legal ramifications
Ads ANS - General Rule:
Not offers because they are not specific enough, there are too many offerees, and a limited supply
- exception: Must be clear, definite, and explicit and leave nothing open for negotiation.
Determining intent to be bound by Contract ANS - i. is contract usually in writing?
ii. does it need formal writing for full expression?
iii. does it have few or many details?
iv. is the amount large or small?
v. is the contract common or unusual?
vi. are some of the contracts details unresolved?
vii. does the contract negotiations show that writing was discussed or contemplated?
Professional words ANS - usually not offers because they are too general and not definite
- exception: Can become offers if words go beyond comfort
Acceptance ANS - To manifest assent to an offer
Elements of Acceptance ANS - Communication
Absolute and Unequivocal
Responsive
Communication (Acceptance) ANS - Offeree relayed a message and offeror recieved message
Absolute/Unequivocal ANS - Offeree expresses willingness to be bound by contract proposed by
offeror.
Responsive ANS - acceptance must mirror the terms of the offer
Silence as Acceptance ANS - generally no acceptance, but it can in certain situations.
Mode of Acceptance ANS - i. Offeror is the master of the offer so they decide how offer must be
accepted
ii. If not specified:
1.Act (unilateral) or
2.Promise (bilateral); AND
