BUL 4421 final exam Comprehensive
Questions (Frequently Tested) with
Verified Answers Graded A+
Contract - Answer: a promise or set of promises for the breach of which the law gives a remedy
or the performance of which the law in some way recognizes a duty.
a legally binding contract requires four elements: - Answer: Agreement
consideration
capacity
legal object
agreement - Answer: consists of an offer by one party, called the offeror, to enter into a contract
and an acceptance of the terms of the offer by the other party, called the offeree.
offeror vs. offeree - Answer: offeror - party who makes the offer
offeree - party to whom the offer is made
consideration - Answer: the bargained-for exchange or what each party gets in exchange for his
or her promise under the contract.
- what a legal entity receives in return for performing a contract obligation
contractual capacity - Answer: the legal ability to enter into a binding agreement
Most adults over the age of majority have capacity; those under the age of majority, people
suffering from mental illness, and sufficiently intoxicated persons do not
,objective theory of contracts - Answer: we base the existence of a contract on the parties'
outward manifestations of intent and we base its interpretation on how a reasonable person
would interpret it
The subjective intent of parties is not usually relevant; what matters is how they represented
their intent through their actions and words
bilateral contract - Answer: a promise in exchange for a promise. As soon as the promises
exchanged, a contract is formed and the parties' legal obligations arise
unilateral contract - Answer: requires performance in order to form a contract (1.e. a promise +
a requested action). The offeror wants the offeree to do something, not promise to do
something.
- only performance by the offeree constitutes a valid acceptance
Express Contract - Answer: the terms of the contract are all clearly set forth in either written or
spoken words
implied contract - Answer: arise not from words but from the conduct of the parties
quasi contract - Answer: also called "implied-in-law contracts, but they are not actually
contracts. Courts impose contractual obligations on one of the parties as If a contract existed to
prevent one party from being unjustly enriched at the expense of te other party.
void contract - Answer: not a contract at all. Either its object is illegal or it has some defect so
serious it is not a contract.
, voidable contract - Answer: one or both of the parties has the ability to either withdraw from
the contract or enforce it.
elements of a valid offer - Answer: 1. offer must be communicated to offeree
2.offeror must manifest serious intent to be bound by the acceptance
3. offer must contain reasonable definite terms
option contract - Answer: the offeree gives the offeror consideration in exchange for holding the
offer open for a specified period of time. The offer is irrevocable for that period of time.
elements of a valid offer: - Answer: 1. Offer must be communicated to offeree
2. Offeror must manifest the intent to be bound by the acceptance
3. Offer must include all material terms
revocation - Answer: the offeror can revoke the offer at any time unless the offeree entered into
an option contract with the offeror. Revocation is effective when the offeree receives it.
rejection - Answer: another way to terminate the offer, effectuated by the offeree.
Regardless of how long the offer was stated to be open, once the offeree rejects it, it is
terminated.
counteroffer - Answer: an offer made by an offeree to his offeror relating to the same matter as
the original and proposing a substituted bargain differing from that proposed in the original
offer
mirror image rule - Answer: The terms of the acceptance must mirror the terms of the offer
exactly for common law contracts. If not, no contract is formed and the purported acceptance is
treated as a counteroffer.
Questions (Frequently Tested) with
Verified Answers Graded A+
Contract - Answer: a promise or set of promises for the breach of which the law gives a remedy
or the performance of which the law in some way recognizes a duty.
a legally binding contract requires four elements: - Answer: Agreement
consideration
capacity
legal object
agreement - Answer: consists of an offer by one party, called the offeror, to enter into a contract
and an acceptance of the terms of the offer by the other party, called the offeree.
offeror vs. offeree - Answer: offeror - party who makes the offer
offeree - party to whom the offer is made
consideration - Answer: the bargained-for exchange or what each party gets in exchange for his
or her promise under the contract.
- what a legal entity receives in return for performing a contract obligation
contractual capacity - Answer: the legal ability to enter into a binding agreement
Most adults over the age of majority have capacity; those under the age of majority, people
suffering from mental illness, and sufficiently intoxicated persons do not
,objective theory of contracts - Answer: we base the existence of a contract on the parties'
outward manifestations of intent and we base its interpretation on how a reasonable person
would interpret it
The subjective intent of parties is not usually relevant; what matters is how they represented
their intent through their actions and words
bilateral contract - Answer: a promise in exchange for a promise. As soon as the promises
exchanged, a contract is formed and the parties' legal obligations arise
unilateral contract - Answer: requires performance in order to form a contract (1.e. a promise +
a requested action). The offeror wants the offeree to do something, not promise to do
something.
- only performance by the offeree constitutes a valid acceptance
Express Contract - Answer: the terms of the contract are all clearly set forth in either written or
spoken words
implied contract - Answer: arise not from words but from the conduct of the parties
quasi contract - Answer: also called "implied-in-law contracts, but they are not actually
contracts. Courts impose contractual obligations on one of the parties as If a contract existed to
prevent one party from being unjustly enriched at the expense of te other party.
void contract - Answer: not a contract at all. Either its object is illegal or it has some defect so
serious it is not a contract.
, voidable contract - Answer: one or both of the parties has the ability to either withdraw from
the contract or enforce it.
elements of a valid offer - Answer: 1. offer must be communicated to offeree
2.offeror must manifest serious intent to be bound by the acceptance
3. offer must contain reasonable definite terms
option contract - Answer: the offeree gives the offeror consideration in exchange for holding the
offer open for a specified period of time. The offer is irrevocable for that period of time.
elements of a valid offer: - Answer: 1. Offer must be communicated to offeree
2. Offeror must manifest the intent to be bound by the acceptance
3. Offer must include all material terms
revocation - Answer: the offeror can revoke the offer at any time unless the offeree entered into
an option contract with the offeror. Revocation is effective when the offeree receives it.
rejection - Answer: another way to terminate the offer, effectuated by the offeree.
Regardless of how long the offer was stated to be open, once the offeree rejects it, it is
terminated.
counteroffer - Answer: an offer made by an offeree to his offeror relating to the same matter as
the original and proposing a substituted bargain differing from that proposed in the original
offer
mirror image rule - Answer: The terms of the acceptance must mirror the terms of the offer
exactly for common law contracts. If not, no contract is formed and the purported acceptance is
treated as a counteroffer.
