MGMT 311 EXAM 3 STUDY GUIDE
The function of contract law - Answer -provides stability and predictability and is the
foundation upon which more specialized areas of the law are built
Sources of contract law - Answer -common law and UCC (uniform contract code)
Common law contracts - Answer -- service contracts - leases
- employment contracts
- real estate contracts
UCC contracts - Answer -sale or lease of goods
Definition of a contract - Answer -an agreement that can be enforced by law between
two or more parties who promise to perform or refrain from performing some act now or
in the future
Objective theory of contracts - Answer -the apparent intention of a party to enter into a
contract is determined by the objective, outward manifestation of his or her assent as it
would be interpreted by a reasonable person
Objective factors of contracts include - Answer -- words: spoken or written by a party
- actions: how the party acted or appeared when they entered into the contract
- circumstances: surrounding the transaction
Weston v. Cornell university - Answer -Dr Weston was hired by Cornell as associate
professor with tenure. They made a new contract without tenure. Sued that she was an
associate professor on tenure tract. Contract said associate professor no tenure. No
additional words, actions, or circumstances
Elements of a valid contract - Answer -agreement, consideration, contractual capacity,
legality
Agreement - Answer -the mutual assent and agreement of the parties must be
evidenced by an offer and an acceptance
Consideration - Answer -legally sufficient and bargained-for consideration must be
exchanged for contractural promises
Contractual capacity - Answer -each party to a contract must be recognized as being
legally competent to enter into contracts
Legality - Answer -the purpose and subject matter of the contract must not be contrary
to law or public policy
,Defenses to enforceability of a contract - Answer -voluntary consent and form
Voluntary consent - Answer -- consent must be genuine and voluntary
- cannot be fraud, mistake, undue influence
Form - Answer -- agreement must be in the form required by lavo
- contracts for land must be in writing
Statue of limitations for contracts - Answer -4 years
Promise - Answer -a person's declaration that she will or will not make something
happen in the future
Promisor - Answer -person making the promise
Promisee - Answer -to whom the promise is made
Offeror - Answer -person proposing an agreement
Offeree - Answer -person to whom the offeror is proposing that agreement
Bilateral contract - Answer -reciprocal promises are exchanged by the parties so that
the promise of one party is exchanged for the promise of the other
- "promise for a promise"
Unilateral contract - Answer -one party makes a promise in exchange for the other
party's actually performing some act or refraining from performing some act
- "promise for an act"
Precision v. General employment - Answer -Employment agency will help you be
placed. Question is did P and D have a contract. By accepting General's unilateral offer
("we will find you an acceptable employee you can hire for 1/3 of her first year salary")
Express contract - Answer -the terms of the agreement are fully and explicitly stated in
oral or written words
Implied contract - Answer -the terms of the agreement are inferred from the conduct of
the parties
3 steps to establish an implied contract - Answer -- P furnished some service or
property to D
- P reasonably expected to be paid
- D had a chance to reject the service or property but did not reject
, Carroll v. Lee - Answer -Carroll lived with Lee for years in Arizona and used the name
Lee. Issue: did P and D have a contract. Implied contract because they intended to be
co-owners and split everything 50/50
Executed contracts - Answer -a contract that has been fully performed on both sides
Executory contracts - Answer -a contract that has not been fully performed on either
side
Valid contract - Answer -all elements that are necessary to forma. Contract are present
Valid contracts can be ______, _______, or ________ - Answer -enforceable, voidable,
unenforceable
Why is a valid contract voidable - Answer -have a contract that looks appropriate but
one of the parties has the option of avoiding the contractual obligation
Why is a valid contract unenforceable - Answer -a contract exists but a valid contract
can't be enforced because of a legal defense
- statute of fraud
- statute of limitations
Void contract - Answer -- agreement has no legal effect and is not really a contract
- no legal obligation exists on the part of either party
Requirements of an agreement - Answer -- requires an offer and acceptance
- requires a "meeting of the minds"
"meeting of the minds" - Answer -parties must show mutual assent to terms of contract
Requirements of the offer - Answer -- offeror must have a serious intention to make a
contract
- reasonably definite terms
- offer must be communicated to offeree
Intention - Answer -the offeror must manifest his or her objective, serious intention to
be bound by the terms of the offer
What is intention determined by - Answer -what a reasonable person (as the offeree)
would conclude about the offer
Lucy v. Zehmer - Answer -Lucy and the old ferguson farm. Went and got some drinks
and drank a lot. Lucy wants to buy farm and zehmer agrees to sell it complete. Contract
says we which refers to zehmer's wife. They both sign the napkin. Takes to court saying
they must give Lucy the land. This is a binding contract
The function of contract law - Answer -provides stability and predictability and is the
foundation upon which more specialized areas of the law are built
Sources of contract law - Answer -common law and UCC (uniform contract code)
Common law contracts - Answer -- service contracts - leases
- employment contracts
- real estate contracts
UCC contracts - Answer -sale or lease of goods
Definition of a contract - Answer -an agreement that can be enforced by law between
two or more parties who promise to perform or refrain from performing some act now or
in the future
Objective theory of contracts - Answer -the apparent intention of a party to enter into a
contract is determined by the objective, outward manifestation of his or her assent as it
would be interpreted by a reasonable person
Objective factors of contracts include - Answer -- words: spoken or written by a party
- actions: how the party acted or appeared when they entered into the contract
- circumstances: surrounding the transaction
Weston v. Cornell university - Answer -Dr Weston was hired by Cornell as associate
professor with tenure. They made a new contract without tenure. Sued that she was an
associate professor on tenure tract. Contract said associate professor no tenure. No
additional words, actions, or circumstances
Elements of a valid contract - Answer -agreement, consideration, contractual capacity,
legality
Agreement - Answer -the mutual assent and agreement of the parties must be
evidenced by an offer and an acceptance
Consideration - Answer -legally sufficient and bargained-for consideration must be
exchanged for contractural promises
Contractual capacity - Answer -each party to a contract must be recognized as being
legally competent to enter into contracts
Legality - Answer -the purpose and subject matter of the contract must not be contrary
to law or public policy
,Defenses to enforceability of a contract - Answer -voluntary consent and form
Voluntary consent - Answer -- consent must be genuine and voluntary
- cannot be fraud, mistake, undue influence
Form - Answer -- agreement must be in the form required by lavo
- contracts for land must be in writing
Statue of limitations for contracts - Answer -4 years
Promise - Answer -a person's declaration that she will or will not make something
happen in the future
Promisor - Answer -person making the promise
Promisee - Answer -to whom the promise is made
Offeror - Answer -person proposing an agreement
Offeree - Answer -person to whom the offeror is proposing that agreement
Bilateral contract - Answer -reciprocal promises are exchanged by the parties so that
the promise of one party is exchanged for the promise of the other
- "promise for a promise"
Unilateral contract - Answer -one party makes a promise in exchange for the other
party's actually performing some act or refraining from performing some act
- "promise for an act"
Precision v. General employment - Answer -Employment agency will help you be
placed. Question is did P and D have a contract. By accepting General's unilateral offer
("we will find you an acceptable employee you can hire for 1/3 of her first year salary")
Express contract - Answer -the terms of the agreement are fully and explicitly stated in
oral or written words
Implied contract - Answer -the terms of the agreement are inferred from the conduct of
the parties
3 steps to establish an implied contract - Answer -- P furnished some service or
property to D
- P reasonably expected to be paid
- D had a chance to reject the service or property but did not reject
, Carroll v. Lee - Answer -Carroll lived with Lee for years in Arizona and used the name
Lee. Issue: did P and D have a contract. Implied contract because they intended to be
co-owners and split everything 50/50
Executed contracts - Answer -a contract that has been fully performed on both sides
Executory contracts - Answer -a contract that has not been fully performed on either
side
Valid contract - Answer -all elements that are necessary to forma. Contract are present
Valid contracts can be ______, _______, or ________ - Answer -enforceable, voidable,
unenforceable
Why is a valid contract voidable - Answer -have a contract that looks appropriate but
one of the parties has the option of avoiding the contractual obligation
Why is a valid contract unenforceable - Answer -a contract exists but a valid contract
can't be enforced because of a legal defense
- statute of fraud
- statute of limitations
Void contract - Answer -- agreement has no legal effect and is not really a contract
- no legal obligation exists on the part of either party
Requirements of an agreement - Answer -- requires an offer and acceptance
- requires a "meeting of the minds"
"meeting of the minds" - Answer -parties must show mutual assent to terms of contract
Requirements of the offer - Answer -- offeror must have a serious intention to make a
contract
- reasonably definite terms
- offer must be communicated to offeree
Intention - Answer -the offeror must manifest his or her objective, serious intention to
be bound by the terms of the offer
What is intention determined by - Answer -what a reasonable person (as the offeree)
would conclude about the offer
Lucy v. Zehmer - Answer -Lucy and the old ferguson farm. Went and got some drinks
and drank a lot. Lucy wants to buy farm and zehmer agrees to sell it complete. Contract
says we which refers to zehmer's wife. They both sign the napkin. Takes to court saying
they must give Lucy the land. This is a binding contract
