©SIRJOEL EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
LENB professor el jourbagy Test 3 Study
Guide.
Offeror - Answers✔A person who makes an offer.
offeree - Answers✔A person to whom an offer is made.
objective theory of contracts - Answers✔A theory that says the intent to contract is judged by
the reasonable person standard and not by the subjective intent of the parties.
quasi contract - Answers✔court-imposed obligation to prevent unjust enrichment in the
absence of a contract
executory contract - Answers✔A contract that has not yet been fully performed.
preliminary negotiations - Answers✔request or invitation to negotiate is not an offer
auctions without reserve - Answers✔seller must accept highest bid
auction with reserve - Answers✔parties have the right to revoke any time before gavel comes
down
consideration - Answers✔something of value exchanged for something else of value; it must be
the product of a mutually bargained for exchange
sufficient consideration - Answers✔Enough Consideration to make a contract binding.
breach of contract - Answers✔The failure, without legal excuse, of a promisor to perform the
obligations of a contract.
Illusory Promise - Answers✔A situation in which a party appears to commit to something but
really has not committed to anything. It is not a promise and thus not consideration.
rules of consideration - Answers✔-court rarely considers adequacy of consideration
-illusory promise does not constitute consideration
-past consideration does not constitute consideration for purposes of present contract
1|Page
, ©SIRJOEL EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
-promise to do something you are already legally binded to do is not valid consideration (cop
wanting a reward for capturing criminal)
requirement agreement - Answers✔buyer agrees to purchase all goods needed/required from
designated seller
output contract - Answers✔contract of a producer to sell its entire production or output to a
given buyer
under what circumstances does someone have limited capacity to enter into a contract? -
Answers✔-minor
-intoxication
-mental deficiency
restitution - Answers✔compensation for injury or loss
Disaffirmance - Answers✔The legal avoidance, or setting aside, of a contractual obligation.
to ratify a contract - Answers✔minor continues to pay on a contract after turning 18
covenant not to compete - Answers✔enforceable if it is reasonable in scope. They are judicially
disfavored because they restrict liability.
adhesion contract - Answers✔A take-it-or-leave-it offer made by a party who holds most of the
power in a bargaining session
exculpatory clause - Answers✔A clause that releases a contractual party from liability in the
event of monetary or physical injury, no matter who is at fault.
mutual mistake - Answers✔either party is in the wrong and can revoke
concealment - Answers✔Act of hiding facts
non-disclosure - Answers✔Failure to disclose important information
duress - Answers✔any unlawful act or threat exercised on a person whereby the person is
forced to enter into an agreement or to perform some other act against his or her will.
Obstacles to genuine assent - Answers✔mistake, misrepresentation, undue influence, duress,
unconscionability
Unconscionability - Answers✔one party has more bargaining power than the other, dictating
the terms of the agreement and eliminating the other party's free will
contracts that must be in writing pursuant to statute of frauds - Answers✔1. contracts involving
real estate
2|Page
ALL RIGHTS RESERVED.
LENB professor el jourbagy Test 3 Study
Guide.
Offeror - Answers✔A person who makes an offer.
offeree - Answers✔A person to whom an offer is made.
objective theory of contracts - Answers✔A theory that says the intent to contract is judged by
the reasonable person standard and not by the subjective intent of the parties.
quasi contract - Answers✔court-imposed obligation to prevent unjust enrichment in the
absence of a contract
executory contract - Answers✔A contract that has not yet been fully performed.
preliminary negotiations - Answers✔request or invitation to negotiate is not an offer
auctions without reserve - Answers✔seller must accept highest bid
auction with reserve - Answers✔parties have the right to revoke any time before gavel comes
down
consideration - Answers✔something of value exchanged for something else of value; it must be
the product of a mutually bargained for exchange
sufficient consideration - Answers✔Enough Consideration to make a contract binding.
breach of contract - Answers✔The failure, without legal excuse, of a promisor to perform the
obligations of a contract.
Illusory Promise - Answers✔A situation in which a party appears to commit to something but
really has not committed to anything. It is not a promise and thus not consideration.
rules of consideration - Answers✔-court rarely considers adequacy of consideration
-illusory promise does not constitute consideration
-past consideration does not constitute consideration for purposes of present contract
1|Page
, ©SIRJOEL EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
-promise to do something you are already legally binded to do is not valid consideration (cop
wanting a reward for capturing criminal)
requirement agreement - Answers✔buyer agrees to purchase all goods needed/required from
designated seller
output contract - Answers✔contract of a producer to sell its entire production or output to a
given buyer
under what circumstances does someone have limited capacity to enter into a contract? -
Answers✔-minor
-intoxication
-mental deficiency
restitution - Answers✔compensation for injury or loss
Disaffirmance - Answers✔The legal avoidance, or setting aside, of a contractual obligation.
to ratify a contract - Answers✔minor continues to pay on a contract after turning 18
covenant not to compete - Answers✔enforceable if it is reasonable in scope. They are judicially
disfavored because they restrict liability.
adhesion contract - Answers✔A take-it-or-leave-it offer made by a party who holds most of the
power in a bargaining session
exculpatory clause - Answers✔A clause that releases a contractual party from liability in the
event of monetary or physical injury, no matter who is at fault.
mutual mistake - Answers✔either party is in the wrong and can revoke
concealment - Answers✔Act of hiding facts
non-disclosure - Answers✔Failure to disclose important information
duress - Answers✔any unlawful act or threat exercised on a person whereby the person is
forced to enter into an agreement or to perform some other act against his or her will.
Obstacles to genuine assent - Answers✔mistake, misrepresentation, undue influence, duress,
unconscionability
Unconscionability - Answers✔one party has more bargaining power than the other, dictating
the terms of the agreement and eliminating the other party's free will
contracts that must be in writing pursuant to statute of frauds - Answers✔1. contracts involving
real estate
2|Page
