BUL 4421 Exam Fully Solved
Agreement - ✅✅ A valid offer requires (1) the manifestation of the offeror's
intent to be bound, (2) definite certain terms, and (3) communication to an offeree.
An acceptance is valid when a manifestation of intent to be bound to the terms of
the offer is communicated to the offeror by the offeree
Mirror image rule - ✅✅ says that the terms of the acceptance must mirror the
terms of the offer.
If they do not, no contract is form
Instead, the attempted acceptance is a counteroffer.
Consideration - ✅✅ something of value given in exchange for something else of
value; it must be the project of a mutually bargained- for exchange.
Illusory promise - ✅✅ Not a consideration
Capacity and Legality - ✅✅ A person has only limited capacity to enter into a
legally binding contract, and therefore can enter into only voidable contracts if the
person is either:
-a minor (exception if married or emancipated);
, -suffering from a mental deficiency that prevents the person from understanding
the nature and obligations of contracts; or
-intoxicated
Capacity and Legality cont. - ✅✅ Contracts that do not have a legal object
because they violate a statute or violate public policy are not valid and deemed
void.
Legal Assent - ✅✅ To make business transactions smoother and more
dependable, courts have developed rules about when an assent to do something is a
legal assent, that is, a promise the courts will require parties to obey.
Mistakes: Unilateral, mutual - ✅✅ Unilateral Mistake- because courts are
hesitant to interfere when one of the parties has a correct understanding of the
material facts of the agreement, a unilateral mistake does not generally void a
contract.
Mutual Mistake- When both parties are mistaken about a current or past material
fact, either can choose to rescind the contract.
Statute of frauds - ✅✅ refers to various state laws modeled after the 1677
English Act for the Prevention of Frauds and Perjuries.
Precedent- ✅✅ Judicial decisions often include interpretations of statues and
administrative regulations, as well as the reasoning they used to arrive at a
decision. Such reasons rely heavily on precedent, past decisions in similar cases
that guide later decisions thereby providing greater stability and predictability to
the law.
Agreement - ✅✅ A valid offer requires (1) the manifestation of the offeror's
intent to be bound, (2) definite certain terms, and (3) communication to an offeree.
An acceptance is valid when a manifestation of intent to be bound to the terms of
the offer is communicated to the offeror by the offeree
Mirror image rule - ✅✅ says that the terms of the acceptance must mirror the
terms of the offer.
If they do not, no contract is form
Instead, the attempted acceptance is a counteroffer.
Consideration - ✅✅ something of value given in exchange for something else of
value; it must be the project of a mutually bargained- for exchange.
Illusory promise - ✅✅ Not a consideration
Capacity and Legality - ✅✅ A person has only limited capacity to enter into a
legally binding contract, and therefore can enter into only voidable contracts if the
person is either:
-a minor (exception if married or emancipated);
, -suffering from a mental deficiency that prevents the person from understanding
the nature and obligations of contracts; or
-intoxicated
Capacity and Legality cont. - ✅✅ Contracts that do not have a legal object
because they violate a statute or violate public policy are not valid and deemed
void.
Legal Assent - ✅✅ To make business transactions smoother and more
dependable, courts have developed rules about when an assent to do something is a
legal assent, that is, a promise the courts will require parties to obey.
Mistakes: Unilateral, mutual - ✅✅ Unilateral Mistake- because courts are
hesitant to interfere when one of the parties has a correct understanding of the
material facts of the agreement, a unilateral mistake does not generally void a
contract.
Mutual Mistake- When both parties are mistaken about a current or past material
fact, either can choose to rescind the contract.
Statute of frauds - ✅✅ refers to various state laws modeled after the 1677
English Act for the Prevention of Frauds and Perjuries.
Precedent- ✅✅ Judicial decisions often include interpretations of statues and
administrative regulations, as well as the reasoning they used to arrive at a
decision. Such reasons rely heavily on precedent, past decisions in similar cases
that guide later decisions thereby providing greater stability and predictability to
the law.
