Business Law and Ethics Questions with Answers

What is the definition of a contract? Correct Answer A promise that the law will enforce Describe the various types of contracts? Correct Answer *Bilateral Contract *Unilateral Contract *Express Contract *Implied Contract *Executory Contract *Executed Contract *Valid Contract Bilateral Contract Correct Answer Both parties make a promise Unilateral Contract Correct Answer One party makes a promise that the other party can accept only by doing something. Express Contract Correct Answer The two parties explicitly state all important terms of their agreement Implied Contract Correct Answer The words and conduct of the parties indicate that they intended on the agreement. Executory Contract Correct Answer When one or more parties has not fulfilled its obligations Executed Contract Correct Answer When all parties has fulfilled their obligations Valid Contract Correct Answer Is one that satisfies all of the laws requirements Identify and describe the theories of recovery in contract law. Correct Answer Express contract: The parties intend to contract and agree on explicit terms. Implied Contract: The parties do not formally agree, but their words and conduct indicate an intention to create a contract. Promissory Estoppel: Even when there is no contract, a plaintiff may us promissory estoppel to enforce the defendants promise if he can show that. -the defendant made a promise knowing that the plaintiff would likely rely on it. -the plaintiff did rely on the promise, the the only way to avoid injustice is to enforce the promise. Quasi Contract: There is no intention to contract, but the plaintiff gives some benefits to the defendant, who knows that the plaintiff expects compensation; it would be unjust not to award the plaintiff damages.