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