LEB 320F - Exam 3 Questions and
Answers 100% Solved | Graded A+
What are the 4 elements of a valid contract? - ✔✔1. agreement
2. consideration
3. legality
4. capacity
What is a contract? - ✔✔a legally binding agreement - a private agreement
that is backed up by law
elements - agreement, consideration, legality, capacity
What are the 4 classifications every contract has? - ✔✔1. bilateral v.
unilateral
2. express v. implied v. quasi
3. valid v. void v. voidable v. unenforceable
4. negotiated v. adhesive
What does whether a contract is bilateral or unilateral address? - ✔✔"what
does the promisor want?" or "what does the promisee need to give the
promisor?"
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,What does a bilateral contract mean? - ✔✔a promise for a promise
most contracts are bilateral in nature - promise now for performance later
ex - Astrid is a singer - "Astrid, I promise to pay you $200 if you promise to
come sing a song in my office at 2 oclock"
-the promise was made now, but the performance won't be until later
What does a unilateral contract mean? - ✔✔a promise for performance
there is no contract until the performance actually happens
ex - Astrid is a singer - "Astrid, if you come by and sing to me at 2 oclock,
I'll pay you $200"
-the only breach that might happen in the unilateral situation is that she
might show up and sing and I don't pay her
-even if Astrid doesn't show up to sing, no contract was breached
How can a contract be created expressly? How can a contract be created
impliedly? - ✔✔expressly - through our words
impliedly - through our actions
What is an express contract? - ✔✔signing something, written contract,
verbal contract, etc.
What is an implied contract? - ✔✔ex- purchasing groceries, eating at a
restaurant, barbershop
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,What is a quasi contract? - ✔✔actually not a contract at all - a situation
where a contract does not exist, and the court creates one
the court says "we've got a contract type situation in the absence of an
actual contract" (here court = judge)
quasi damages are used when there is not contract, but the court believes
if the defendant pays, things will be made right - in the case of unjust
enrichment (unjust enrichment leads to the plaintiff being paid for the fair
market value of their services
-ex- a soctor billing for services that weren't signed for
When are quasi court damages used? - ✔✔when there is no contract, but
the court believes if the defendant pays, things will be made right - in the
case of unjust enrichment (unjust enrichment leads to the plaintiff being
paid for the fair market value of their services
-ex- a doctor billing for services that weren't signed for
What is a valid contract? - ✔✔one that has all of the elements
When is a contract void? - ✔✔when all 4 elements aren't present - it never
was a contract in the first place (ex- if the contract is illegal)
neither party is bound - you cannot breach it because there's nothing to
breach
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, What is a void contract? - ✔✔never was a contract in the first place - when
all 4 elements aren't present
What is a voidable contract? - ✔✔where one of the parties can walk away
without penalty
ex- an adult goes into business with a minor
-minors, for a period of time, have the freedom to walk away without
penalty (but the adult can't walk away)
What is an unenforcable contract? - ✔✔a valid contract that later becomes
unenforcable (by some operation of law)
When is a contract unenforcable? - ✔✔nothing starts out as unenforcable -
the court won't back it up anymore
what are some operations of law that might make a completely valid
contract unenforcable?
1. if you want to sue someone for breach of contract after the statute of
limitations (usually 1 year after the breach) has expired
2. if at the time of agreement the contract is legal, but before the time the
contract is going to be acted on a piece of legislation is passed making the
contract illegal
-it was legal when the agreement was struck, but it became illegal
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Answers 100% Solved | Graded A+
What are the 4 elements of a valid contract? - ✔✔1. agreement
2. consideration
3. legality
4. capacity
What is a contract? - ✔✔a legally binding agreement - a private agreement
that is backed up by law
elements - agreement, consideration, legality, capacity
What are the 4 classifications every contract has? - ✔✔1. bilateral v.
unilateral
2. express v. implied v. quasi
3. valid v. void v. voidable v. unenforceable
4. negotiated v. adhesive
What does whether a contract is bilateral or unilateral address? - ✔✔"what
does the promisor want?" or "what does the promisee need to give the
promisor?"
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,What does a bilateral contract mean? - ✔✔a promise for a promise
most contracts are bilateral in nature - promise now for performance later
ex - Astrid is a singer - "Astrid, I promise to pay you $200 if you promise to
come sing a song in my office at 2 oclock"
-the promise was made now, but the performance won't be until later
What does a unilateral contract mean? - ✔✔a promise for performance
there is no contract until the performance actually happens
ex - Astrid is a singer - "Astrid, if you come by and sing to me at 2 oclock,
I'll pay you $200"
-the only breach that might happen in the unilateral situation is that she
might show up and sing and I don't pay her
-even if Astrid doesn't show up to sing, no contract was breached
How can a contract be created expressly? How can a contract be created
impliedly? - ✔✔expressly - through our words
impliedly - through our actions
What is an express contract? - ✔✔signing something, written contract,
verbal contract, etc.
What is an implied contract? - ✔✔ex- purchasing groceries, eating at a
restaurant, barbershop
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,What is a quasi contract? - ✔✔actually not a contract at all - a situation
where a contract does not exist, and the court creates one
the court says "we've got a contract type situation in the absence of an
actual contract" (here court = judge)
quasi damages are used when there is not contract, but the court believes
if the defendant pays, things will be made right - in the case of unjust
enrichment (unjust enrichment leads to the plaintiff being paid for the fair
market value of their services
-ex- a soctor billing for services that weren't signed for
When are quasi court damages used? - ✔✔when there is no contract, but
the court believes if the defendant pays, things will be made right - in the
case of unjust enrichment (unjust enrichment leads to the plaintiff being
paid for the fair market value of their services
-ex- a doctor billing for services that weren't signed for
What is a valid contract? - ✔✔one that has all of the elements
When is a contract void? - ✔✔when all 4 elements aren't present - it never
was a contract in the first place (ex- if the contract is illegal)
neither party is bound - you cannot breach it because there's nothing to
breach
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, What is a void contract? - ✔✔never was a contract in the first place - when
all 4 elements aren't present
What is a voidable contract? - ✔✔where one of the parties can walk away
without penalty
ex- an adult goes into business with a minor
-minors, for a period of time, have the freedom to walk away without
penalty (but the adult can't walk away)
What is an unenforcable contract? - ✔✔a valid contract that later becomes
unenforcable (by some operation of law)
When is a contract unenforcable? - ✔✔nothing starts out as unenforcable -
the court won't back it up anymore
what are some operations of law that might make a completely valid
contract unenforcable?
1. if you want to sue someone for breach of contract after the statute of
limitations (usually 1 year after the breach) has expired
2. if at the time of agreement the contract is legal, but before the time the
contract is going to be acted on a piece of legislation is passed making the
contract illegal
-it was legal when the agreement was struck, but it became illegal
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
