LAW 122 Contracts -Questions and Answers | New
2025/2026 Update | With Complete Solutions
Promisor
The person manifesting the intention
Promisee
The person to whom a manifestation is addressed
Bargain Contract
A bargain contract is an agreement pursuant to which the promisor promises to do something in
exchange for some promise or performance
2 BK Formulas
(1) offer + acceptance + consideration, (2) promise + mutual assent + consideration
BK Formulas Comparison
An offer is a conditional promise. Mutual assent is the process by which an offer and acceptance
give rise to an agreement. Consideration is the exchange of promises or performances.
When can an offer be revoked?
Any time before acceptance
Offer
An offer is a manifestation of willingness to enter into a bargain, such that the offeree reasonably
believes that their assent is invited, and when given, will conclude the bargain
,Illusory Promise
In the context of appearing to make a promise, it becomes apparent that the maker of that
promise has a free way out, so the promise does not bind the party to do anything, such that it
does not serve as valid consideration
When may an illusory promise be binding?
If a reasonable person can satisfy the illusory promise, it is no longer illusory and is thus binding
SPOONGRIT
Section 24, Promise, Others, Open terms, Negotiations, Reliance, Interpretation against the
draftsmen, Totality of the circumstances
§24
(Objective Test) An offer is a manifestation of willingness to enter into a bargain, such that the
offeree reasonably believes that their assent is invited, and when given, will conclude the bargain
Promise
A manifestation of intention to act or refrain from acting in a particular way
Open Terms
Whether contract terms are reasonably certain and detailed
Others
Offer must be sufficiently limited. Are there more offers than quantity of goods or services
available?
, Negotiations
Evidence that the parties were in a mind to contract, or a "bargaining state of mind"
Good Faith & Fair Dealing
Courts are more likely to find an offer exists when the offeror acts in bad faith
Reliance Interest
(§90) Protecting the reliance interests of the promisee/offeree (FREDDS analysis here, if
applicable)
Interpretation Against the Drafter
Interpret ambiguity in the contract against the drafter of the contract, who was the party in the
best position to prevent any miscommunication or confusion (Least Cost Avoider Principle)
Totality of the Circumstances
Looking at the language, conduct (present action), and context (standards of practice)
Mutual Assent
Mutual assent is the process by which two parties come to an agreement, creating the offer and
acceptance
Acceptance
Acceptance occurs when the offeree believes their assent is invited and agrees to the proposed
exchange, later providing the consideration sought by the offeror
Acceptance (Essay Rule)
2025/2026 Update | With Complete Solutions
Promisor
The person manifesting the intention
Promisee
The person to whom a manifestation is addressed
Bargain Contract
A bargain contract is an agreement pursuant to which the promisor promises to do something in
exchange for some promise or performance
2 BK Formulas
(1) offer + acceptance + consideration, (2) promise + mutual assent + consideration
BK Formulas Comparison
An offer is a conditional promise. Mutual assent is the process by which an offer and acceptance
give rise to an agreement. Consideration is the exchange of promises or performances.
When can an offer be revoked?
Any time before acceptance
Offer
An offer is a manifestation of willingness to enter into a bargain, such that the offeree reasonably
believes that their assent is invited, and when given, will conclude the bargain
,Illusory Promise
In the context of appearing to make a promise, it becomes apparent that the maker of that
promise has a free way out, so the promise does not bind the party to do anything, such that it
does not serve as valid consideration
When may an illusory promise be binding?
If a reasonable person can satisfy the illusory promise, it is no longer illusory and is thus binding
SPOONGRIT
Section 24, Promise, Others, Open terms, Negotiations, Reliance, Interpretation against the
draftsmen, Totality of the circumstances
§24
(Objective Test) An offer is a manifestation of willingness to enter into a bargain, such that the
offeree reasonably believes that their assent is invited, and when given, will conclude the bargain
Promise
A manifestation of intention to act or refrain from acting in a particular way
Open Terms
Whether contract terms are reasonably certain and detailed
Others
Offer must be sufficiently limited. Are there more offers than quantity of goods or services
available?
, Negotiations
Evidence that the parties were in a mind to contract, or a "bargaining state of mind"
Good Faith & Fair Dealing
Courts are more likely to find an offer exists when the offeror acts in bad faith
Reliance Interest
(§90) Protecting the reliance interests of the promisee/offeree (FREDDS analysis here, if
applicable)
Interpretation Against the Drafter
Interpret ambiguity in the contract against the drafter of the contract, who was the party in the
best position to prevent any miscommunication or confusion (Least Cost Avoider Principle)
Totality of the Circumstances
Looking at the language, conduct (present action), and context (standards of practice)
Mutual Assent
Mutual assent is the process by which two parties come to an agreement, creating the offer and
acceptance
Acceptance
Acceptance occurs when the offeree believes their assent is invited and agrees to the proposed
exchange, later providing the consideration sought by the offeror
Acceptance (Essay Rule)
