LAW 3220 Test 3 (Toussaint) Questions with Correct Answers Latest Update 2025/2026
Contract Law - Answers -Language of business
-Freedom of contract: there are responsibilities to those who create legally binding relationships
-Common law: judge-made, uniformity about general contract principles that run throughout
most states' laws, each state differs
-English courts began to use lex mercatoria ("the law merchant"
-Roman law of contracts was surprisingly sophisticated
-UCC (Uniform Commercial Code): all states have adopted except Louisiana, covers contract for
sale of goods
-Many countries rely on Code Law only for their basic legal framework
What is the definition of a contract? - Answers "An agreement, upon sufficient consideration, to
do or not to do a particular thing" (Blackstone)
Modern: "A promise or set of promises for the breach of which the law gives a remedy, or the
performance of which the law in some way recognizes a duty"
-Promise itself creates a manifestation of intent
-Contracts for legal relationships and duties between parties
-Not all promises are enforceable contracts -- must meet the requirements of a contract to
create an enforceable promise
Express Contracts - Answers -Direct statement by the parties of the promises made
-May be oral or written
-All important terms are expressly stated between the parties
Ex: Real Estate contract
Implied Contracts - Answers -Actions and circumstances infer and define the terms of the
contract
-May be words, conduct, gestures
,-These contracts are implied at law
Ex: At checkout counter at grocery store, hair cut
Elements of a Contract (5, sometimes 6) - Answers 1. An Agreement, through offer or
acceptance
2. Consideration
3. Contractual Capacity
4. Legality
5. Genuine Consent
6. Writing (if necessary under the Statute of Frauds)
If all elements are present, the contract is generally termed valid
Offer and Acceptance - Answers Offer
-Creates the Offeror and Offeree
1.Manifestation of Intent
-Preliminary Negotiations vs Intent to Offer
2. Definite Terms & Conditions 'ESSENTIAL TERMS'
3. Communication
-Person returns a dog but does not know of an award
-Sometimes terms will be presumed
-Restatement (2nd) of Contracts: "the manifestation of willingness to enter into a bargain, so
made as to justify another person in understanding that his assent to the bargain is invited and
will conclude it"
Terminating an Offer - Answers Revocation: -Withdrawing of offer by the Offeror
Rejection:
,-By Offeree
-Through laps of time (Option Contract are different)
-Counteroffers are created by rejected the original offer but keeping negotiations open by
presenting new conditions-result is a counteroffer
Operation of Law
-Intervening Illegality
-Destruction of subject matter
-Death or insanity of offeror or offeree
Acceptance of Contract - Answers 1. Unconditional
-Must be a mirror image of the offer
-If conditions are added, they create a counteroffer
2. Unequivocal
3. Legally Communicated
Bilateral Contracts: two people have to act
Unilateral Contract: One person has to act (in lost dog case, the person that put up the sign has
to act)
Certified Fire Protection v. Precision Construction - Answers -Precision Construction is general
contractor that bid on job
-Solicited bids from subcontractors for things such as design & installation of a sprinkler
system for fire prevention. Based on specifications, Certified Fire submitted a bit of $480,000.
Won the bid. Precision began construction.
-December 5: Certified got a copy of the contract from Precision, along with a set of
construction plans and sprinkler requirements.
--Contract required Certified to have preliminary design draws for system within 2 weeks and
provide an insurance certificate
, January 19: No signed contract or insurance certificate, but Certified billed Precision for $33,575,
although plans were not yet ready for Certified
-January 26: Precision told Certified that it was holding up the project and it would move ahead
without Certified
-February 1: Certified submitted drawings but objected to terms in contract
-February 8: Precision told of mistakes in sprinkler system drawings
-February 16: Precision told Certified that it was ended relationship: Because contract wasn't
signed; There was no insurance certificate; Drawings were incorrect
-Certificate sued for breach of contract
-Contended it was due payment for the sprinkler system drawings
-Trial court held for Precision--no contract existed. Certified appealed
-A contract requires offer & acceptance, meeting of minds and consideration. Meeting of the
mides. When parties have agreed upon contract's essential terms. Essential "depends on the
agreement and its context and also on the subsequent conduct of the parties, including the
dispute which arises and the remedy sought.
-Certified argued progress bill it sent to Precision established the price term. Said Precision's
urging thatCertified get started on designs established scope of work for express design-work-
only contract
-Testimony establish th
Consideration - Answers Something of value or something bargained for in exchange for a
promise
- This element keeps contract from being a gift
-If consideration is absent, neither party may enforce the promise or agreement
-Tradition Rule: must create
--Legal detriment to the promisee OR
--Legal benefit to the promisor
--Actually the legal detriment and benefit usually occur at the same time
Adequacy of Consideration - Answers -Courts do not examine much
Contract Law - Answers -Language of business
-Freedom of contract: there are responsibilities to those who create legally binding relationships
-Common law: judge-made, uniformity about general contract principles that run throughout
most states' laws, each state differs
-English courts began to use lex mercatoria ("the law merchant"
-Roman law of contracts was surprisingly sophisticated
-UCC (Uniform Commercial Code): all states have adopted except Louisiana, covers contract for
sale of goods
-Many countries rely on Code Law only for their basic legal framework
What is the definition of a contract? - Answers "An agreement, upon sufficient consideration, to
do or not to do a particular thing" (Blackstone)
Modern: "A promise or set of promises for the breach of which the law gives a remedy, or the
performance of which the law in some way recognizes a duty"
-Promise itself creates a manifestation of intent
-Contracts for legal relationships and duties between parties
-Not all promises are enforceable contracts -- must meet the requirements of a contract to
create an enforceable promise
Express Contracts - Answers -Direct statement by the parties of the promises made
-May be oral or written
-All important terms are expressly stated between the parties
Ex: Real Estate contract
Implied Contracts - Answers -Actions and circumstances infer and define the terms of the
contract
-May be words, conduct, gestures
,-These contracts are implied at law
Ex: At checkout counter at grocery store, hair cut
Elements of a Contract (5, sometimes 6) - Answers 1. An Agreement, through offer or
acceptance
2. Consideration
3. Contractual Capacity
4. Legality
5. Genuine Consent
6. Writing (if necessary under the Statute of Frauds)
If all elements are present, the contract is generally termed valid
Offer and Acceptance - Answers Offer
-Creates the Offeror and Offeree
1.Manifestation of Intent
-Preliminary Negotiations vs Intent to Offer
2. Definite Terms & Conditions 'ESSENTIAL TERMS'
3. Communication
-Person returns a dog but does not know of an award
-Sometimes terms will be presumed
-Restatement (2nd) of Contracts: "the manifestation of willingness to enter into a bargain, so
made as to justify another person in understanding that his assent to the bargain is invited and
will conclude it"
Terminating an Offer - Answers Revocation: -Withdrawing of offer by the Offeror
Rejection:
,-By Offeree
-Through laps of time (Option Contract are different)
-Counteroffers are created by rejected the original offer but keeping negotiations open by
presenting new conditions-result is a counteroffer
Operation of Law
-Intervening Illegality
-Destruction of subject matter
-Death or insanity of offeror or offeree
Acceptance of Contract - Answers 1. Unconditional
-Must be a mirror image of the offer
-If conditions are added, they create a counteroffer
2. Unequivocal
3. Legally Communicated
Bilateral Contracts: two people have to act
Unilateral Contract: One person has to act (in lost dog case, the person that put up the sign has
to act)
Certified Fire Protection v. Precision Construction - Answers -Precision Construction is general
contractor that bid on job
-Solicited bids from subcontractors for things such as design & installation of a sprinkler
system for fire prevention. Based on specifications, Certified Fire submitted a bit of $480,000.
Won the bid. Precision began construction.
-December 5: Certified got a copy of the contract from Precision, along with a set of
construction plans and sprinkler requirements.
--Contract required Certified to have preliminary design draws for system within 2 weeks and
provide an insurance certificate
, January 19: No signed contract or insurance certificate, but Certified billed Precision for $33,575,
although plans were not yet ready for Certified
-January 26: Precision told Certified that it was holding up the project and it would move ahead
without Certified
-February 1: Certified submitted drawings but objected to terms in contract
-February 8: Precision told of mistakes in sprinkler system drawings
-February 16: Precision told Certified that it was ended relationship: Because contract wasn't
signed; There was no insurance certificate; Drawings were incorrect
-Certificate sued for breach of contract
-Contended it was due payment for the sprinkler system drawings
-Trial court held for Precision--no contract existed. Certified appealed
-A contract requires offer & acceptance, meeting of minds and consideration. Meeting of the
mides. When parties have agreed upon contract's essential terms. Essential "depends on the
agreement and its context and also on the subsequent conduct of the parties, including the
dispute which arises and the remedy sought.
-Certified argued progress bill it sent to Precision established the price term. Said Precision's
urging thatCertified get started on designs established scope of work for express design-work-
only contract
-Testimony establish th
Consideration - Answers Something of value or something bargained for in exchange for a
promise
- This element keeps contract from being a gift
-If consideration is absent, neither party may enforce the promise or agreement
-Tradition Rule: must create
--Legal detriment to the promisee OR
--Legal benefit to the promisor
--Actually the legal detriment and benefit usually occur at the same time
Adequacy of Consideration - Answers -Courts do not examine much
