BUL 4310 EXAM 2 COMPLETE STUDY GUIDE
WITH SOLVED QUESTIONS
◉ Satisfaction.
Answer: Look at Accord and Satisfaction
◉ Rule of Law.
Answer: Premised on the notion that one shouldn't have to depend
on the kindness of individuals/businesses because there's a set of
rules that govern regardless who leads
◉ Course of Conduct.
Answer: This is used when a judge examines the relationship
between interactions of parties to a contract to glean their intent.
◉ Illusory Promise.
Answer: promise that in fact does not impose any obligation on the
promisor. They are indefinite, vague, or unidentifiable. (nudum
pactum)
Ex: You will receive all that I wish to provide, to be paid if we can
afford it
,Ex: A promise to give employees a good bonus if we make a bundle
this year.
pg: 243-244
◉ Nudum Pactum.
Answer: Look at illusory promise
◉ Tort.
Answer: non-contractual claims for which a civil defendant may be
held liable such as negligence, fraud, battery, invasion of privacy, etc.
pg: 179
◉ Crime.
Answer: Public wrongs for which a defendant may be punished via
fines and imprisonment.
Ex: Embezzlement, robbery, certain fraud, and arson
pg: 179
◉ Contract.
Answer: type of private (consensual) law made by the parties
themselves. It is a legal enforceable agreement by court. In breach,
,the non-breaching party generally gets restored like there was no
breach. (Must have consideration)
Elements include:
1. Offer
2. Acceptance
3. Consideration
4. Capacity
5. Mutuality of Assent
6. Legality of Purpose
Contracts don't have to be written, but it's good because:
1. Writing process helps clarify terms hence makes contracts better
2. Written document serves as evidence there was a contract, that
parties agreed, and written evidence remains existent
Drafting your own document:
Advantage: use your own language and have a lot of control
Disadvantage: Ambiguity in contract usually is resolved in favor of
party that didn't draft the agreement
Should include essential terms: subject matter, quantity (amount of
property or service), price, and parties.
, pg: 180, 185, 186, 189
◉ Legal Clout.
Answer: When a party uses a contract to ensure the other party will
not back out. Contracts are useful when ethics alone aren't enough
to guarantee a party will complete the contract.
Ex: Abe knows Jean's ethics aren't influential enough for her to
complete her job, so he makes her sign a contract
pg: 184
◉ Contract Law.
Answer: Two principles associated with an economic approach to
contract law are:
1. respect for individual autonomy
2. maintaining or attaining a stable legal system
Reduces transaction costs in at least 3 ways
1. Encourages the performance of voluntary agreements by
providing a sanction for breach
2. Reduces negotiation costs by providing standard or customary
terms for various types of transactions
3. Discourages misleading conduct in contract negotiations
WITH SOLVED QUESTIONS
◉ Satisfaction.
Answer: Look at Accord and Satisfaction
◉ Rule of Law.
Answer: Premised on the notion that one shouldn't have to depend
on the kindness of individuals/businesses because there's a set of
rules that govern regardless who leads
◉ Course of Conduct.
Answer: This is used when a judge examines the relationship
between interactions of parties to a contract to glean their intent.
◉ Illusory Promise.
Answer: promise that in fact does not impose any obligation on the
promisor. They are indefinite, vague, or unidentifiable. (nudum
pactum)
Ex: You will receive all that I wish to provide, to be paid if we can
afford it
,Ex: A promise to give employees a good bonus if we make a bundle
this year.
pg: 243-244
◉ Nudum Pactum.
Answer: Look at illusory promise
◉ Tort.
Answer: non-contractual claims for which a civil defendant may be
held liable such as negligence, fraud, battery, invasion of privacy, etc.
pg: 179
◉ Crime.
Answer: Public wrongs for which a defendant may be punished via
fines and imprisonment.
Ex: Embezzlement, robbery, certain fraud, and arson
pg: 179
◉ Contract.
Answer: type of private (consensual) law made by the parties
themselves. It is a legal enforceable agreement by court. In breach,
,the non-breaching party generally gets restored like there was no
breach. (Must have consideration)
Elements include:
1. Offer
2. Acceptance
3. Consideration
4. Capacity
5. Mutuality of Assent
6. Legality of Purpose
Contracts don't have to be written, but it's good because:
1. Writing process helps clarify terms hence makes contracts better
2. Written document serves as evidence there was a contract, that
parties agreed, and written evidence remains existent
Drafting your own document:
Advantage: use your own language and have a lot of control
Disadvantage: Ambiguity in contract usually is resolved in favor of
party that didn't draft the agreement
Should include essential terms: subject matter, quantity (amount of
property or service), price, and parties.
, pg: 180, 185, 186, 189
◉ Legal Clout.
Answer: When a party uses a contract to ensure the other party will
not back out. Contracts are useful when ethics alone aren't enough
to guarantee a party will complete the contract.
Ex: Abe knows Jean's ethics aren't influential enough for her to
complete her job, so he makes her sign a contract
pg: 184
◉ Contract Law.
Answer: Two principles associated with an economic approach to
contract law are:
1. respect for individual autonomy
2. maintaining or attaining a stable legal system
Reduces transaction costs in at least 3 ways
1. Encourages the performance of voluntary agreements by
providing a sanction for breach
2. Reduces negotiation costs by providing standard or customary
terms for various types of transactions
3. Discourages misleading conduct in contract negotiations
