BUSA Exam 3 Study Guide
What is a contract? - ANS-a legally binding agreement
What are the elements of a contract? - ANS--offer
-acceptance
-consideration
-legality
-capacity
-consent
-writing
Define unilateral contract: - ANS-a contract created by an offer that can only be accepted by
performance
What is an express contract? - ANS-an exchange of promises where terms by which the parties
agree to be bound are declared either orally or in writing, or a combination of both, at the time it
is made
What is a bilateral contract? - ANS-a contract in which both parties exchange promises to
perform
What is an implied contract? - ANS-a legally-binding obligation that derives from actions,
conduct, or circumstances of one or more parties in an agreement
What are counteroffers? - ANS-Counteroffers are not offers and they are still getting negotiated
ID offer and acceptance? - ANS-Offer: A promise to do or refrain from doing something in
exchange for something else
Acceptance: one person's compliance with the terms of an offer made by another
Define revocation - ANS-an annulment or cancellation of a statement or agreement
What is not an offer? - ANS-the schedule of charges for the Goods and Services specified in
this Agreement Form
What is an option contract? - ANS-a promise which meets the requirements for the formation of
a contract and limits the promisor's power to revoke an offer
What happens to a contract if the offeror dies? - ANS-the author is revoked
Define the mailbox rule: - ANS-acceptance effective upon dispatch
What is a contract? - ANS-a legally binding agreement
What are the elements of a contract? - ANS--offer
-acceptance
-consideration
-legality
-capacity
-consent
-writing
Define unilateral contract: - ANS-a contract created by an offer that can only be accepted by
performance
What is an express contract? - ANS-an exchange of promises where terms by which the parties
agree to be bound are declared either orally or in writing, or a combination of both, at the time it
is made
What is a bilateral contract? - ANS-a contract in which both parties exchange promises to
perform
What is an implied contract? - ANS-a legally-binding obligation that derives from actions,
conduct, or circumstances of one or more parties in an agreement
What are counteroffers? - ANS-Counteroffers are not offers and they are still getting negotiated
ID offer and acceptance? - ANS-Offer: A promise to do or refrain from doing something in
exchange for something else
Acceptance: one person's compliance with the terms of an offer made by another
Define revocation - ANS-an annulment or cancellation of a statement or agreement
What is not an offer? - ANS-the schedule of charges for the Goods and Services specified in
this Agreement Form
What is an option contract? - ANS-a promise which meets the requirements for the formation of
a contract and limits the promisor's power to revoke an offer
What happens to a contract if the offeror dies? - ANS-the author is revoked
Define the mailbox rule: - ANS-acceptance effective upon dispatch
