Law and Business Exam 2, Welker, USF Questions with Complete Solutions, Graded to Pass

Bilateral Contract - A contract entered into by way of exchange of promises of the parties; "a promise for a promise". Unilateral Contract - A contract in which the offeror's offer can be accepted only by the performance of an act by the offeree; a "promise for an act". Quasi Contract - A contract implied by law to prevent unjust enrichment. Allows a court to award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contact existed between them. Implied-in-fact Contract - A contract in which agreement between parties has been inferred from their conduct (the way they acted). Executed Contract - A completed contract that has been fully performed on both sides. Executory Contract - A contract that has not been fully performed by either or both parties. Counter Offer - Response made by the offeree, creates a new offer and terminated the offeror's offer. Rejection - The offeree rejects the offer by his or her words or conduct. Communication of Offer - An offer cannot be accepted if it is not communicated to the offeree by the offeror or their representative. Rewards - What you get for doing an act that offers it (ie; return of lost property) when you (1) knew about it before and (2) performed the requested act. Intent to Make an Offer - Determined using the objective theory of contracts (whether a reasonable person would conclude that the parties intended to be legally bound). Mirror Image Rule - For an acceptance to exist, the offeree must accept the terms as stated in the offer. He can't change the offer or it'd be a counteroffer. Received by Offeror - Rejection of offer effective when... Received by Offeree - Revocation of offer effective when... Dispatched by Offeree - Acceptance of offer for a bilateral contract effective when... Preexisting Duty - If you are already contractually obligated to do something, it is this. If a person promises to do this thing in which they are already obligated to do, it lacks consideration. (You can't change the terms of a contract if you have the obligation to not change the contract you agreed on at first). Output Contract - A contract in which a seller agrees to sell all of its production to a single buyer. This allows them to be beneficial to each other by assuring a sale for one side and a supply for the other. Requirements Contract - A contract in which a buyer agrees to purchase all of its requirements for an item from one seller. (ie; Ford only buying tires from Goodyear) Best-efforts Contract - A contract which requires that one or both parties use their best efforts to achieve the objective of the contract. (ie; Realtor making best effort to sell a listing) Promissory Estoppal - A doctrine that prevents the withdrawal of a promise if it will adversely affect the other person who adjusted their position in reliance on that promise.