Kelley School of Business (McCrory) -
L201 Exam 2|2025 QUESTIONS WITH
100% SOLVED SOLUTIONS!!
Define contract - Answera legally enforceable promise or set of promises
3 elements of a K - AnswerOffer, Acceptance, Consideration
Unilateral K? - Answerone party promises to do something in return for an act of the
other party. (promise for performance). Unlike Bilateral, in a unilateral K the offeree's
promise to perform is insufficient to constitute an acceptance; the offeree must perform
the act to accept the offer
Ex: Frequent Buyer Card> promise to give the 5th cup of coffee free
Ex: Rewards ads (Find dog for $100)
Bilateral K - Answerpromise for a promise
Ex: Coffee shop rents kiosk from mall for $1,000/month if they promise to lease them a
kiosk.
A contract must be ___ to be legally enforceable. - AnswerVALID
Voidable K - AnswerHarmed parties have the legal right to cancel their obligation to
the contract
Executory K - AnswerNot all duties have been fulfilled.
2 bodies of governing law for Ks? - AnswerUCC and Common Law of Contracts
Article 2 of the UCC applies to? - AnswerThe sale of goods ONLY- not real estate,
stocks, services, etc.
Protocol for "hybrid" contracts? - AnswerWhichever predominates.
Ex: Auto repair store that also sells the parts (Mainly a service, i.e. UCC won't be
applied- common law of Ks will)
, Does it have to be written to technically be a contract? - AnswerNot technically,
although there are certain exceptions for UCC, and a written contract is much more
substantial in the courts.
State that didn't adopt UCC? - AnswerLouisiana.
unenforceable Contract? - AnswerDoesn't necessarily mean it can't be enforced,
there is just some other legal technicality.
Statue of Frauds states that... - Answer1. real estate contracts must be in writing if
they are to be enforceable by the courts.
2. Contracts $500+ have to be in writing.
Void Contract (different from voidABLE) - AnswerCourt cannot recognize the
existence of a contract, due to an illegal act. (i.e. murder, etc.)
What happens when laws change pertaining to contracts? (i.e. the US sells computers
to Iran under a treaty, then the treaty gets removed) - AnswerThe contract becomes
VOID- court cannot recognize the existence of the K.
Executed K - AnswerAll duties have been fulfilled (pertains to immediate duties like
services)
Partially executory K - AnswerNot all the duties have been fulfilled, but some have.
Expressed K - AnswerTerms are explicitly stated.
Implied K - AnswerThe contract is implied.
(Ex: going to the dentist> It is implied you will pay)
Basic elements of a quasi contract/Quantum Meruit/Unjust Enrichment? - Answer1)
Benefit- you receive it, it is considered unjust or unfair unless you pay for it or give it
back
(ex: painter goes to the wrong house and the owner doesn't say anything > painter can
recover for the benefits)
2) Knowingly Received
3) Equity - unjust/unfair
Basic elements of a promissory estoppel? - Answer1) Promise
2) Act
L201 Exam 2|2025 QUESTIONS WITH
100% SOLVED SOLUTIONS!!
Define contract - Answera legally enforceable promise or set of promises
3 elements of a K - AnswerOffer, Acceptance, Consideration
Unilateral K? - Answerone party promises to do something in return for an act of the
other party. (promise for performance). Unlike Bilateral, in a unilateral K the offeree's
promise to perform is insufficient to constitute an acceptance; the offeree must perform
the act to accept the offer
Ex: Frequent Buyer Card> promise to give the 5th cup of coffee free
Ex: Rewards ads (Find dog for $100)
Bilateral K - Answerpromise for a promise
Ex: Coffee shop rents kiosk from mall for $1,000/month if they promise to lease them a
kiosk.
A contract must be ___ to be legally enforceable. - AnswerVALID
Voidable K - AnswerHarmed parties have the legal right to cancel their obligation to
the contract
Executory K - AnswerNot all duties have been fulfilled.
2 bodies of governing law for Ks? - AnswerUCC and Common Law of Contracts
Article 2 of the UCC applies to? - AnswerThe sale of goods ONLY- not real estate,
stocks, services, etc.
Protocol for "hybrid" contracts? - AnswerWhichever predominates.
Ex: Auto repair store that also sells the parts (Mainly a service, i.e. UCC won't be
applied- common law of Ks will)
, Does it have to be written to technically be a contract? - AnswerNot technically,
although there are certain exceptions for UCC, and a written contract is much more
substantial in the courts.
State that didn't adopt UCC? - AnswerLouisiana.
unenforceable Contract? - AnswerDoesn't necessarily mean it can't be enforced,
there is just some other legal technicality.
Statue of Frauds states that... - Answer1. real estate contracts must be in writing if
they are to be enforceable by the courts.
2. Contracts $500+ have to be in writing.
Void Contract (different from voidABLE) - AnswerCourt cannot recognize the
existence of a contract, due to an illegal act. (i.e. murder, etc.)
What happens when laws change pertaining to contracts? (i.e. the US sells computers
to Iran under a treaty, then the treaty gets removed) - AnswerThe contract becomes
VOID- court cannot recognize the existence of the K.
Executed K - AnswerAll duties have been fulfilled (pertains to immediate duties like
services)
Partially executory K - AnswerNot all the duties have been fulfilled, but some have.
Expressed K - AnswerTerms are explicitly stated.
Implied K - AnswerThe contract is implied.
(Ex: going to the dentist> It is implied you will pay)
Basic elements of a quasi contract/Quantum Meruit/Unjust Enrichment? - Answer1)
Benefit- you receive it, it is considered unjust or unfair unless you pay for it or give it
back
(ex: painter goes to the wrong house and the owner doesn't say anything > painter can
recover for the benefits)
2) Knowingly Received
3) Equity - unjust/unfair
Basic elements of a promissory estoppel? - Answer1) Promise
2) Act
