Business law - Contract Law Questions and Answers Updated 2026.

Business law - Contract
Law Questions and
Answers Updated 2026
ContractB-
BAnswerBbetweenBtwoBorBmoreBpartiesBthatBisBenforceableBbyBtheBcourtBofBlaw

ElementsBofBaBcontractB-BAnswerB1.BAgreementB=BProperBauthor,BProperBaccepts

2.BConsiderationB=BForBsomethingBofBlegalBvalueB(BIBagreedBtoBpayB10KBtoBpaintBap
partmentB,ByouBagreedBtoBdoBit)

3.BCapacity

4.BGenuineBassentB(authorBofBtextBbookBpointsBitBoutBasBdefence)B=B5/BVoluntaryBco
mingBtogether

5.BLegalBpurposeB-
BTheBobjectiveBofBtheBcontractBmustBbeBforBaBlegalBpurpose.BForBexample,BaBcontrac
tBforBillegalBdistributionBofBdrugsBisBnot

aBbindingBcontractBbecauseBtheBpurposeBforBwhichBitBexistsBisBnotBleg

TheBcharactersBofBourBplayB-BAnswerBOfferor/promiseBgivingBtheBcontract



Offeree/promise

ContractBthatBneedBtoBbeBwrittingB-BAnswerBa.BAnyBcontractBforBsaleBofBland

b.BAnyBcontractBforBmoreBthanBoneByear

merchantByouBareBgovernedBbyB-
BAnswerBuniformBcommercialBcodeBandB5BelementsBofBcommonBlaw

BilateralB-BAnswerBforBaBpromisesB

ExampleByouBrentBmyBapartment,ByouBpayB$X)

UnilateralB-
BAnswerBaBpromiseBforBanBactB/BanBagreementBtoBpayBforBnonperformance.

Example:BRewards,BIBwillBpayByouB$1,000BifByouBbringBmyBcarBfromBClevelandBtoBSa
nBFrancisco."BBringingBtheBcarBisBacceptance.

, FormalBcontractB-
BAnswerBUseBguideBlinesBbasedBonBaBindustryBorBformalizedBcontractBonBcourt.

ExecutedB-BAnswerBcompletedBcontract

executoryB-BAnswerBSomethingBnotByetBperformedBorBdone.B

Examples:BanBexecutoryBcontractBisBoneBinBwhichBallBorBpartBofBtheBrequiredBperfor
manceBhasBnotBbeenBdone;BanBexecutoryBbequestBisBaBgiftBunderBaBwillBwhichBhasB
notBbeenBdistributedBtoBtheBbeneficiary

StandardBusedBbyBcourtBtoBdetermineBwhetherBaBcontractBisBvalidB-
BAnswerBReasonableBpersonBstadnard

ValidBcontractB-BAnswerBenforceableBbindingBcontractBhenceBaBgoodBcontract

VoidableBcontractB-
BAnswerBOneBorBsometimesBbothBpartiesBhaveBtheBabilityBtoBcancelBtheBcontractBfor
BaBcertainBperiodBofBtime.B

TheyBcanBcancelBtheBcontractBbyBrescindingBit,Bavoidance,BorBdisaffirm

VoidBcontractB-BAnswerBneverBwasBaBcontractB(nonBexistence)

UnenforceableB-
BAnswerBAgreementBbetweenBtwoBpartiesBthatBisBunenforceableBinBtheBcourtBofBlaw

a.UsuallyBwhenBitBviolateBaBlawB-BsubsequentBillugalityB

b.BABcontractBthatBisBrequiredBinBwritingBbutBisn't

QuasiBcontractB(notBaBcontract)B-
BAnswerBQuasiBcontractBisBnotBaBcontract:BitBisBaBwayBweBrightBaBwrong.BWhenBwe
BhaveBcontractBlawBweBjustBlookBatB5BelementsBandBwordingBofBtheBcontract.BIfBthe
reBisBnoBcontractBthenBthereBisBnoBcontractBtoBenforce.B

RightingBaBwrongBorBtoBpreventBunjustBenrichmentB-
BusuallyBwrittenBbyBfairBmarketBvalue.BIfByouBdidBservicesBandBthereBwasBnoBcontrac
tBtoBenforceByouBwillBpayBguyBamountBforBlaborBheBdid.

ContractBlawsBandBdamagesB-
BAnswerBNoBpunitiveBdamagesBunlessBaBtortBisBalsoBcommittedBinBtheBbreachingBofB
theBcontract.BContractBsimplyBofferBrecoveryBatBfairBmarketBvalue

OfferB-BAnswerB1.BJudgedBbasedBonBReasonBpersonaBstandard

2.BPresentBintent

3.BDefinitiveBlanguageB=BNoBvaguenessBorBopinionsBexpressed