BUL 4421 Final Test Questions and Answers Latest Update 2025-2026
contract - Answers a promise or set of promises for the breach of which the law gives a remedy
or a performance of which the law in some way recognizes a duty
agreement - Answers 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
consideration - Answers The bargained-for exchange or what each party gets in exchange for
his or her promise under a contract
contractual capacity - Answers 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 of mental illness, and sufficiently intoxicated persons do not
objective theory of contracts - Answers 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
billateral contract - Answers 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 - Answers requires performance in order to form a contract. the offeror
wants the offeree to do something, not promise to do something (a promise+request action)
express contract - Answers the terms of the contract are all clearly set forth in either written or
spoken words
implied contract - Answers arise not from words but from the conduct of the parties
void contract - Answers no contract at all. either its object is illegal or it has some defect so
serious it is not a contract.
voidable contract - Answers one or both of the parties has the ability to either withdraw from the
contract or enforce it
option contract - Answers the offeree gives the offeror consideration in exchange for holding
the offer open for a specified period of time
revocation - Answers 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 - Answers 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 - Answers an offer made by an offeree to his offeror relating to the same matter as
the original offer and proposing a substituted bargain differing from that proposed by the
original offer
*a counteroffer terminates the original offer
Destruction or subsequent illegality of the subject matter - Answers if the subject matter of the
offer is destroyed or becomes illegal, the offer immediately terminates
lapse of time - Answers If the offer states it will be held open for only a certain time, it
terminates when that time expires.
In the absence of such a time condition, the offer will expire after the lapse of a reasonable
amount of time.
authorized means of acceptance - Answers if the offer specifies that acceptance must be
communicated by a specific mode, that mode is the only means for accepting the offer
*if no mode of communication is specified in the offer, any reasonable means of acceptance is
valid.
For a unilateral contract only performance by the offeree constitutes a valid acceptance -
Answers
consideration - Answers what a legal entity receives in return for performing a contract
obligation
Types of consideration: - Answers -benefit to the promisee
-detriment to the promisor
-promise to do something
-promise to refrain from doing something
adequacy of consideration - Answers *the court seldom considers adequacy of consideration
*the court does not weight wether you made a good bargain
*EXCEPTION: if the court believes fraud or undue undue influence occurred, the court may look
at adequacy of consideration
Illusory promise - Answers -Is not a promise at all
contract - Answers a promise or set of promises for the breach of which the law gives a remedy
or a performance of which the law in some way recognizes a duty
agreement - Answers 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
consideration - Answers The bargained-for exchange or what each party gets in exchange for
his or her promise under a contract
contractual capacity - Answers 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 of mental illness, and sufficiently intoxicated persons do not
objective theory of contracts - Answers 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
billateral contract - Answers 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 - Answers requires performance in order to form a contract. the offeror
wants the offeree to do something, not promise to do something (a promise+request action)
express contract - Answers the terms of the contract are all clearly set forth in either written or
spoken words
implied contract - Answers arise not from words but from the conduct of the parties
void contract - Answers no contract at all. either its object is illegal or it has some defect so
serious it is not a contract.
voidable contract - Answers one or both of the parties has the ability to either withdraw from the
contract or enforce it
option contract - Answers the offeree gives the offeror consideration in exchange for holding
the offer open for a specified period of time
revocation - Answers 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 - Answers 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 - Answers an offer made by an offeree to his offeror relating to the same matter as
the original offer and proposing a substituted bargain differing from that proposed by the
original offer
*a counteroffer terminates the original offer
Destruction or subsequent illegality of the subject matter - Answers if the subject matter of the
offer is destroyed or becomes illegal, the offer immediately terminates
lapse of time - Answers If the offer states it will be held open for only a certain time, it
terminates when that time expires.
In the absence of such a time condition, the offer will expire after the lapse of a reasonable
amount of time.
authorized means of acceptance - Answers if the offer specifies that acceptance must be
communicated by a specific mode, that mode is the only means for accepting the offer
*if no mode of communication is specified in the offer, any reasonable means of acceptance is
valid.
For a unilateral contract only performance by the offeree constitutes a valid acceptance -
Answers
consideration - Answers what a legal entity receives in return for performing a contract
obligation
Types of consideration: - Answers -benefit to the promisee
-detriment to the promisor
-promise to do something
-promise to refrain from doing something
adequacy of consideration - Answers *the court seldom considers adequacy of consideration
*the court does not weight wether you made a good bargain
*EXCEPTION: if the court believes fraud or undue undue influence occurred, the court may look
at adequacy of consideration
Illusory promise - Answers -Is not a promise at all
