Business Law Exam 3: Contract Law
Uniform Commercial Code (UCC) - ANS -written by legal scholars, governs contracts for the
sale and lease of goods
contract - ANS -a promise for the breach of which the law provides a remedy
elements of a valid contract - ANS -agreement, consideration, contractual capacity, and legality
agreement - ANS -an offer and an acceptance
consideration - ANS -something of value must be received or promised
contractual capacity - ANS -both parties must be competent to enter a contract
legality - ANS -the contract's purpose must be legal
bilateral contract - ANS -the offeree accepts by promising to perform the contract
unilateral contract - ANS -the offer can accept only by performing the terms of the contract
If offeree has substantially completed the terms of the unilateral contract, - ANS -the contract
cannot be revoked
formal contract - ANS -must be in a specified format to be enforceable
informal contract - ANS -no special format is required
express contract - ANS -the terms are fully stated whether written or orally
implied contract - ANS -the conduct of the party determines the terms
requirements of an implied contract - ANS -the plaintiff furnished some service or property,the
plaintiff expected to be paid for that service or property, and the defendant knew or should have
known that payment was expected, the defendant had a chance to reject the services or
property and did not
Contract Performance - ANS -executed contract, executory contract
executed contract - ANS -a contract that has been fully performed by both parties
, executory contract - ANS -a contract that has not been fully performed
agreement requires - ANS -offeror and offeree
offeror - ANS -the one who makes the offer
offeree - ANS -the one to home the offer is made
requirements of the offer - ANS -intention to create a contract, reasonably certain terms,
communication of the offer to the offeree
valid contract (enforceable contract, voidable contract, and unenforceable contract) - ANS -a
contract that has the necessary contractual elements: agreement, consideration, legal capacity
of the parties, and legal purpose
enforceable contract - ANS -a valid contract that can be enforced because there are no legal
defenses against it
voidable contract - ANS -a party has the option of avoiding or enforcing the contractual
obligation
unenforceable contract - ANS -a contract exists, but it cannot be enforced because of a legal
defense
void contract - ANS -no contract exists, or there is a contract without legal obligations
parties can revoke an offer if - ANS -express repudiation of the offer, performance of acts
inconsistent with the offer, rejecting the offer, offering a counteroffer(which is a rejection and new
offer)
option contract (cannot be revoked) - ANS -hold the offer open for a specific period of time in
exchange for consideration
unilateral contract that have been substantially performed... - ANS -cannot be revoked
acceptance must be - ANS -unequivocal and communicated to the offeror
silence does not - ANS -constitute acceptance
acceptance must be done in a - ANS -timely manner and occurs when it is sent (the "mailbox
rule")
Uniform Commercial Code (UCC) - ANS -written by legal scholars, governs contracts for the
sale and lease of goods
contract - ANS -a promise for the breach of which the law provides a remedy
elements of a valid contract - ANS -agreement, consideration, contractual capacity, and legality
agreement - ANS -an offer and an acceptance
consideration - ANS -something of value must be received or promised
contractual capacity - ANS -both parties must be competent to enter a contract
legality - ANS -the contract's purpose must be legal
bilateral contract - ANS -the offeree accepts by promising to perform the contract
unilateral contract - ANS -the offer can accept only by performing the terms of the contract
If offeree has substantially completed the terms of the unilateral contract, - ANS -the contract
cannot be revoked
formal contract - ANS -must be in a specified format to be enforceable
informal contract - ANS -no special format is required
express contract - ANS -the terms are fully stated whether written or orally
implied contract - ANS -the conduct of the party determines the terms
requirements of an implied contract - ANS -the plaintiff furnished some service or property,the
plaintiff expected to be paid for that service or property, and the defendant knew or should have
known that payment was expected, the defendant had a chance to reject the services or
property and did not
Contract Performance - ANS -executed contract, executory contract
executed contract - ANS -a contract that has been fully performed by both parties
, executory contract - ANS -a contract that has not been fully performed
agreement requires - ANS -offeror and offeree
offeror - ANS -the one who makes the offer
offeree - ANS -the one to home the offer is made
requirements of the offer - ANS -intention to create a contract, reasonably certain terms,
communication of the offer to the offeree
valid contract (enforceable contract, voidable contract, and unenforceable contract) - ANS -a
contract that has the necessary contractual elements: agreement, consideration, legal capacity
of the parties, and legal purpose
enforceable contract - ANS -a valid contract that can be enforced because there are no legal
defenses against it
voidable contract - ANS -a party has the option of avoiding or enforcing the contractual
obligation
unenforceable contract - ANS -a contract exists, but it cannot be enforced because of a legal
defense
void contract - ANS -no contract exists, or there is a contract without legal obligations
parties can revoke an offer if - ANS -express repudiation of the offer, performance of acts
inconsistent with the offer, rejecting the offer, offering a counteroffer(which is a rejection and new
offer)
option contract (cannot be revoked) - ANS -hold the offer open for a specific period of time in
exchange for consideration
unilateral contract that have been substantially performed... - ANS -cannot be revoked
acceptance must be - ANS -unequivocal and communicated to the offeror
silence does not - ANS -constitute acceptance
acceptance must be done in a - ANS -timely manner and occurs when it is sent (the "mailbox
rule")
