perry binder exam 2 gsu UPDATED ACTUAL Questions and CORRECT
Answers
1. express contract an agreement that is expressed in oral or written words(most contracts are
expressed contracts)
2. Express contracts re- 1. Offer(can be written or oral)
quire? 2. acceptance
3. consideration
4.capacity
5. legality
6. Intent
3. counteroffer a response by an offeree that contains terms and conditions different from
or in addition to those of the offer. Counter offer terminates original offer.
4. consideration something of legal value given in exchange for a promise. Both sides must
give up and receive equal value.
5. past consideration a prior act or performance. Does not support a new contract = new consid-
eration must be given.
6. Promissory Estop- Made a promise...other party relied on it... they were harmed.
pel/Detrimental Re-
liance
7. capacity a person is legally able to enter a contract ( age, state of mind, etc)
8. Legality Contract is legally valid. (void if usury or illegal gambling)
9. usurious Charging interest rate higher than allowed (pawn shop overcharge inter-
est)
10. Intent No mutual-mistake in the contract. If mutual-mistake = no contract
11. void contract Has no legal effect if (minor, intoxication, insanity, undue influence, duress)
, 12. Voidable contract one or more parties has the option to void their contractual obligation. If
contract is voided, both parties are released from obligations. one side can
choose to enforce then judge decides. Some are unenforceable.
13. minor Contract is voidable of minor. However can not get out of student loans,
business loans, or contract of necessity (food, clothing, shelter)
14. intoxication contract is voidable once intoxicated person sobers up
15. insanity voidable if judge or court rules they lack capacity or has previously lacked
capacity.
16. undue influence person in position of trust plays on that trust to get what they want (no force
involved)
17. Duress Party was forced illegally to sign a contract
18. unilateral mistake if one side makes a mistake, contract is still binding (wells fargo case)
19. breach of express a contracting part's failure to perform an absolute duty owned under a
contract contract.
20. breach of express 1. existence of valid contract
contract must show 2. breach( other side broke contract )
all... 3. Plaintiff was not notified of breach before lawsuit
4. Plaintiff performed all conditions prior to filing action
5. there are compensatory damages(unless fraud=punitive damages)
21. implied contracts are not expressly stated
22. Implied in fact agreements in party have been inferred from there conduct, not oral or
written (remember painted fence)
23. Implied in law
Answers
1. express contract an agreement that is expressed in oral or written words(most contracts are
expressed contracts)
2. Express contracts re- 1. Offer(can be written or oral)
quire? 2. acceptance
3. consideration
4.capacity
5. legality
6. Intent
3. counteroffer a response by an offeree that contains terms and conditions different from
or in addition to those of the offer. Counter offer terminates original offer.
4. consideration something of legal value given in exchange for a promise. Both sides must
give up and receive equal value.
5. past consideration a prior act or performance. Does not support a new contract = new consid-
eration must be given.
6. Promissory Estop- Made a promise...other party relied on it... they were harmed.
pel/Detrimental Re-
liance
7. capacity a person is legally able to enter a contract ( age, state of mind, etc)
8. Legality Contract is legally valid. (void if usury or illegal gambling)
9. usurious Charging interest rate higher than allowed (pawn shop overcharge inter-
est)
10. Intent No mutual-mistake in the contract. If mutual-mistake = no contract
11. void contract Has no legal effect if (minor, intoxication, insanity, undue influence, duress)
, 12. Voidable contract one or more parties has the option to void their contractual obligation. If
contract is voided, both parties are released from obligations. one side can
choose to enforce then judge decides. Some are unenforceable.
13. minor Contract is voidable of minor. However can not get out of student loans,
business loans, or contract of necessity (food, clothing, shelter)
14. intoxication contract is voidable once intoxicated person sobers up
15. insanity voidable if judge or court rules they lack capacity or has previously lacked
capacity.
16. undue influence person in position of trust plays on that trust to get what they want (no force
involved)
17. Duress Party was forced illegally to sign a contract
18. unilateral mistake if one side makes a mistake, contract is still binding (wells fargo case)
19. breach of express a contracting part's failure to perform an absolute duty owned under a
contract contract.
20. breach of express 1. existence of valid contract
contract must show 2. breach( other side broke contract )
all... 3. Plaintiff was not notified of breach before lawsuit
4. Plaintiff performed all conditions prior to filing action
5. there are compensatory damages(unless fraud=punitive damages)
21. implied contracts are not expressly stated
22. Implied in fact agreements in party have been inferred from there conduct, not oral or
written (remember painted fence)
23. Implied in law
