BUL4421 Final exam UPDATED ACTUAL
Questions and CORRECT Answers
Contract - CORRECT ANSWER - - 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 as d duty
Agreement - CORRECT ANSWER - - Offer by one party (offeror) to enter into a contract
and an acceptance of the terms of the offer by the other party (offeree)
Offeror - CORRECT ANSWER - - Party that makes the initial offer
Offeree - CORRECT ANSWER - - Party with the power to accept, reject, or counteroffer
- Party to whom an offer is made
Consideration - CORRECT ANSWER - -Bargained-for exchange
- What each party gets in exchange for their promise under a contract
- What a person will receive in return for performing a contract obligation
Contractual Capacity - CORRECT ANSWER - - Legal ability to enter into a binding
agreement
Groups that lack capacity - CORRECT ANSWER - - Underage individuals
- people suffering from mental illness
- Intoxicated people
Objective theory of contracts - CORRECT ANSWER - - Base the existence of a contract
on the parties' outward manifestations of intent, basing its interpretation on how a reasonable
person would interpret it
, Bilateral contract - CORRECT ANSWER - - Promise in exchange for a promise
Unilateral contract - CORRECT ANSWER - - An exchange of a promise for an act
- Offeror wants the offeree to do something, rather than promise something
Express contract - CORRECT ANSWER - - Terms of the contract are clearly set forth in
written or spoken words
Implied contract - CORRECT ANSWER - - Terms of the contract arise from conduct of
the parties, not words
Void contract - CORRECT ANSWER - - No contract exist
- Objective is illegal or has some defect
Voidable contract - CORRECT ANSWER - - One or both of the parties have the ability to
withdraw the contract, or enforce it
Option contract - CORRECT ANSWER - - Offeree gives the offeror a piece of
consideration in exchange for holding an offer open for a specified period of time
Revocation - CORRECT ANSWER - - Offeree revokes the offer at any time, unless the
offeree enters into an optional contract with the offeror
Rejection - CORRECT ANSWER - - Way of terminating an offer by an offeree
Counteroffer - CORRECT ANSWER - - Offer made by offeree to offeror relating to the
same matter as the initial offer
- Propose a substituted bargain different from the one proposed by the offeror
- Terminates the original/initial offer
Questions and CORRECT Answers
Contract - CORRECT ANSWER - - 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 as d duty
Agreement - CORRECT ANSWER - - Offer by one party (offeror) to enter into a contract
and an acceptance of the terms of the offer by the other party (offeree)
Offeror - CORRECT ANSWER - - Party that makes the initial offer
Offeree - CORRECT ANSWER - - Party with the power to accept, reject, or counteroffer
- Party to whom an offer is made
Consideration - CORRECT ANSWER - -Bargained-for exchange
- What each party gets in exchange for their promise under a contract
- What a person will receive in return for performing a contract obligation
Contractual Capacity - CORRECT ANSWER - - Legal ability to enter into a binding
agreement
Groups that lack capacity - CORRECT ANSWER - - Underage individuals
- people suffering from mental illness
- Intoxicated people
Objective theory of contracts - CORRECT ANSWER - - Base the existence of a contract
on the parties' outward manifestations of intent, basing its interpretation on how a reasonable
person would interpret it
, Bilateral contract - CORRECT ANSWER - - Promise in exchange for a promise
Unilateral contract - CORRECT ANSWER - - An exchange of a promise for an act
- Offeror wants the offeree to do something, rather than promise something
Express contract - CORRECT ANSWER - - Terms of the contract are clearly set forth in
written or spoken words
Implied contract - CORRECT ANSWER - - Terms of the contract arise from conduct of
the parties, not words
Void contract - CORRECT ANSWER - - No contract exist
- Objective is illegal or has some defect
Voidable contract - CORRECT ANSWER - - One or both of the parties have the ability to
withdraw the contract, or enforce it
Option contract - CORRECT ANSWER - - Offeree gives the offeror a piece of
consideration in exchange for holding an offer open for a specified period of time
Revocation - CORRECT ANSWER - - Offeree revokes the offer at any time, unless the
offeree enters into an optional contract with the offeror
Rejection - CORRECT ANSWER - - Way of terminating an offer by an offeree
Counteroffer - CORRECT ANSWER - - Offer made by offeree to offeror relating to the
same matter as the initial offer
- Propose a substituted bargain different from the one proposed by the offeror
- Terminates the original/initial offer
