LES 305 - Exam 2 questions with 100%
correct answers rated A+
U.S v. Apple Inc. - correct answer ✔✔contract is void that has illegal purpose
raising prices in e-book market
sherman anti-trust act 1890
TIAA v. Tribune - correct answer ✔✔contracts impose a duty of good faith on parties
"commitment letter agreement" obligates both parties to negotiate in good faith to a final agreement
Walker v. Shawn Carter - correct answer ✔✔Unwritten contract is unenforceable when the statute of
fraud requires a signed writing - contract is voidable
handshake agreement, can't find written agreement according to plaintiff
Statute of Frauds applied because any agreement that cannot be performed within 1-yr must be in
writing
Lucy v. Zehmer (1954) - correct answer ✔✔intent to contract is determined by objective standard
contract written on restaurant receipt while drunk
objective standard held up the contract, courts don't look at the subjective
contract - correct answer ✔✔a legally enforceable agreement between two or more parties
,Freedom of Contract - correct answer ✔✔A perspective where courts do not interfere with the
contracting process, do not assess the wisdom of the deal, and enforce valid contracts against parties
absent evidence of fraud, mistake, oppression, or lack of legal purpose.
Restatement (Second) of Contracts - correct answer ✔✔model law that many courts have adopted to
govern contracts involving services or real estate
Uniform Commercial Code - correct answer ✔✔A model code that deals with sale of goods, commercial
paper, secured transactions, and other commercial activities
noncompete contract - correct answer ✔✔contract in which one party agrees not to compete with
another
Value Chain Activities - correct answer ✔✔different business functions that generate value in most
businesses
good faith - correct answer ✔✔honesty in fact and the observance of reasonable commercial standards
of fair dealing
contract law - correct answer ✔✔promotes business objectives and is a flexible area of private law that
encourages contracting parties to define their own terms and strike novel types of agreements
four basic elements of a contract - correct answer ✔✔mutual assent, consideration, legality of purpose,
capacity
Mutual Assent - correct answer ✔✔the parties to a contract must manifest by words or conduct that
they have agreed to enter into a contract
Consideration - correct answer ✔✔This element requires both sides to obtain something of value (legal
benefit) and to give up something of value (legal detriment).
, legality of purpose - correct answer ✔✔A contract must satisfy a legal purpose to be enforceable.
Contracts that are contrary to existing laws or public policy are likely to be rendered unenforceable.
capacity - correct answer ✔✔Both parties to the contract must have the legal standing to enter into
contracts. Individuals who are minors, mentally incapacitated, or intoxicated may lack the capacity to
enter into contracts, which may result in a voidable contract.
valid - correct answer ✔✔contract has required elements
void - correct answer ✔✔when contract lacks one of the required elements or has not been formed in
conformance with the law from the outset
Voidable - correct answer ✔✔A contract is voidable when the law gives one or more parties the right to
cancel an otherwise valid contract under the circumstances.
Unenforceable - correct answer ✔✔Although a contract may have all the required elements and be
considered valid, it may be unenforceable because one party asserts a legal defense to performing the
contract.
Merchant Law - correct answer ✔✔rules and trade practices developed by merchants in medieval trade
guilds and administered by their own courts
Lex Mercatoria - correct answer ✔✔The body of laws and international agreements that govern the
relationships and contracts between international parties
Bilateral Contract - correct answer ✔✔the legal detriment is incurred through the mutual promises the
parties make to each other.
Legal Detriment - correct answer ✔✔when a promisee gives up the right to retain control of something
he was entitled to keep, or to give up the right to do something, in exchange for a promise by the other
party to the contract
correct answers rated A+
U.S v. Apple Inc. - correct answer ✔✔contract is void that has illegal purpose
raising prices in e-book market
sherman anti-trust act 1890
TIAA v. Tribune - correct answer ✔✔contracts impose a duty of good faith on parties
"commitment letter agreement" obligates both parties to negotiate in good faith to a final agreement
Walker v. Shawn Carter - correct answer ✔✔Unwritten contract is unenforceable when the statute of
fraud requires a signed writing - contract is voidable
handshake agreement, can't find written agreement according to plaintiff
Statute of Frauds applied because any agreement that cannot be performed within 1-yr must be in
writing
Lucy v. Zehmer (1954) - correct answer ✔✔intent to contract is determined by objective standard
contract written on restaurant receipt while drunk
objective standard held up the contract, courts don't look at the subjective
contract - correct answer ✔✔a legally enforceable agreement between two or more parties
,Freedom of Contract - correct answer ✔✔A perspective where courts do not interfere with the
contracting process, do not assess the wisdom of the deal, and enforce valid contracts against parties
absent evidence of fraud, mistake, oppression, or lack of legal purpose.
Restatement (Second) of Contracts - correct answer ✔✔model law that many courts have adopted to
govern contracts involving services or real estate
Uniform Commercial Code - correct answer ✔✔A model code that deals with sale of goods, commercial
paper, secured transactions, and other commercial activities
noncompete contract - correct answer ✔✔contract in which one party agrees not to compete with
another
Value Chain Activities - correct answer ✔✔different business functions that generate value in most
businesses
good faith - correct answer ✔✔honesty in fact and the observance of reasonable commercial standards
of fair dealing
contract law - correct answer ✔✔promotes business objectives and is a flexible area of private law that
encourages contracting parties to define their own terms and strike novel types of agreements
four basic elements of a contract - correct answer ✔✔mutual assent, consideration, legality of purpose,
capacity
Mutual Assent - correct answer ✔✔the parties to a contract must manifest by words or conduct that
they have agreed to enter into a contract
Consideration - correct answer ✔✔This element requires both sides to obtain something of value (legal
benefit) and to give up something of value (legal detriment).
, legality of purpose - correct answer ✔✔A contract must satisfy a legal purpose to be enforceable.
Contracts that are contrary to existing laws or public policy are likely to be rendered unenforceable.
capacity - correct answer ✔✔Both parties to the contract must have the legal standing to enter into
contracts. Individuals who are minors, mentally incapacitated, or intoxicated may lack the capacity to
enter into contracts, which may result in a voidable contract.
valid - correct answer ✔✔contract has required elements
void - correct answer ✔✔when contract lacks one of the required elements or has not been formed in
conformance with the law from the outset
Voidable - correct answer ✔✔A contract is voidable when the law gives one or more parties the right to
cancel an otherwise valid contract under the circumstances.
Unenforceable - correct answer ✔✔Although a contract may have all the required elements and be
considered valid, it may be unenforceable because one party asserts a legal defense to performing the
contract.
Merchant Law - correct answer ✔✔rules and trade practices developed by merchants in medieval trade
guilds and administered by their own courts
Lex Mercatoria - correct answer ✔✔The body of laws and international agreements that govern the
relationships and contracts between international parties
Bilateral Contract - correct answer ✔✔the legal detriment is incurred through the mutual promises the
parties make to each other.
Legal Detriment - correct answer ✔✔when a promisee gives up the right to retain control of something
he was entitled to keep, or to give up the right to do something, in exchange for a promise by the other
party to the contract
