ACC 747: Final Exam QUESTIONS
WELL ANSWERED GRADED A+
2025/2026
Every contract is comprised of 3 parts: - correct answer ✔✔1 ) Mutual Accent - offer and
acceptance
2) Consideration - actual value ($$$) being exchanged
3) No defenses to enforcement
What is a contract? - correct answer ✔✔A legally enforceable agreement that created
expectations of benefits or obligations in a transaction.
Bilateral Contract - correct answer ✔✔Exchange of two promises for future performance
Unilateral Contract - correct answer ✔✔Exchange of a promise for future performance for a
present performance
Voidable Contract - correct answer ✔✔One party holds an option to cancel the contract. That
option must be exercised promptly & unequivocally. One party must DO something to void the
contract.
Void Contract - correct answer ✔✔Not recognized as a legally enforceable contract. Contract is
void by default.
Express Contract - correct answer ✔✔Specifically stated and agreed between the parties
,Implied Contract - correct answer ✔✔Not expressly stated, but based on the circumstances of
the agreement
Executed Contract - correct answer ✔✔Contract that has been fully performed by both parties
Executory Contract - correct answer ✔✔Contract that has not been fully performed by at least
one party
Common-Law Contracts - correct answer ✔✔- State by state, judge-made law
- Original source of all contract regulation, interpretation & governance
- Every state can have its own unique contract rules, making multi-state transactions challenging
*** If it's NOT a sale of goods transaction, the contract is governed by the common law.
Statutory Law (UCC) - correct answer ✔✔- UCC: State-approved statutory law adopted for all
sale and lease of goods transaction.
- If you see goods, think UCC.
- Creates a uniform set of rules among the states for the creation and interpretation of sale of
goods contracts
- Relaxed set of rules for establishing contracts. Generally much less strict than in common law.
UCC- Specific Rules - correct answer ✔✔Under the UCC ONLY:
- Duty of Good Faith and Fair Dealing: parties will act with honesty in fact in the performance of
their obligations
- Merchant - special UCC rules for merchants as opposed to non-merchant parties in a
transaction. Merchants are often held to a higher, more stringent standard.
, - Unconscionable obligation: Provision in the UCC that allows a court to deem a performance
obligation null and void if deemed unconscionable (grossly unfair and one-sided)
- Hybrid/blended contracts: agreement has components in both goods and services. Look to the
predominant nature of the agreement.
Quasi-Contract - correct answer ✔✔One party confers a benefit to a second party who has
knowledge of the benefit being conferred, and it is unjust to allow the second party to keep the
benefit without having to pay for it.
The law creates an obligation on the first party to PAY for something, that was not otherwise
part of a legally-enforceable contract.
Promissory Estoppel - correct answer ✔✔Promise that the promisor should foresee is likely to
induce DETRIMENTAL RELIANCE by the other party; meaning, the detrimental reliance is
foreseeable & reasonable, and promisee changes his/her legal position in reliance on the
promise.
Injustice results. The promisor is "estopped" (prohibited) from claiming that no contract exists,
thus requiring performance by the promisor.
Every valid offer must have 3 parts: - correct answer ✔✔1. Present intent to create a contract if
the offeree accepts
2. Specific/ definite terms
3. Communication to the offeree
Present Intent to Create a Contract - correct answer ✔✔Objective Standard of Intent: Would a
reasonable person believe that the offer would make someone believe a contract would be
formed if accepted?
WELL ANSWERED GRADED A+
2025/2026
Every contract is comprised of 3 parts: - correct answer ✔✔1 ) Mutual Accent - offer and
acceptance
2) Consideration - actual value ($$$) being exchanged
3) No defenses to enforcement
What is a contract? - correct answer ✔✔A legally enforceable agreement that created
expectations of benefits or obligations in a transaction.
Bilateral Contract - correct answer ✔✔Exchange of two promises for future performance
Unilateral Contract - correct answer ✔✔Exchange of a promise for future performance for a
present performance
Voidable Contract - correct answer ✔✔One party holds an option to cancel the contract. That
option must be exercised promptly & unequivocally. One party must DO something to void the
contract.
Void Contract - correct answer ✔✔Not recognized as a legally enforceable contract. Contract is
void by default.
Express Contract - correct answer ✔✔Specifically stated and agreed between the parties
,Implied Contract - correct answer ✔✔Not expressly stated, but based on the circumstances of
the agreement
Executed Contract - correct answer ✔✔Contract that has been fully performed by both parties
Executory Contract - correct answer ✔✔Contract that has not been fully performed by at least
one party
Common-Law Contracts - correct answer ✔✔- State by state, judge-made law
- Original source of all contract regulation, interpretation & governance
- Every state can have its own unique contract rules, making multi-state transactions challenging
*** If it's NOT a sale of goods transaction, the contract is governed by the common law.
Statutory Law (UCC) - correct answer ✔✔- UCC: State-approved statutory law adopted for all
sale and lease of goods transaction.
- If you see goods, think UCC.
- Creates a uniform set of rules among the states for the creation and interpretation of sale of
goods contracts
- Relaxed set of rules for establishing contracts. Generally much less strict than in common law.
UCC- Specific Rules - correct answer ✔✔Under the UCC ONLY:
- Duty of Good Faith and Fair Dealing: parties will act with honesty in fact in the performance of
their obligations
- Merchant - special UCC rules for merchants as opposed to non-merchant parties in a
transaction. Merchants are often held to a higher, more stringent standard.
, - Unconscionable obligation: Provision in the UCC that allows a court to deem a performance
obligation null and void if deemed unconscionable (grossly unfair and one-sided)
- Hybrid/blended contracts: agreement has components in both goods and services. Look to the
predominant nature of the agreement.
Quasi-Contract - correct answer ✔✔One party confers a benefit to a second party who has
knowledge of the benefit being conferred, and it is unjust to allow the second party to keep the
benefit without having to pay for it.
The law creates an obligation on the first party to PAY for something, that was not otherwise
part of a legally-enforceable contract.
Promissory Estoppel - correct answer ✔✔Promise that the promisor should foresee is likely to
induce DETRIMENTAL RELIANCE by the other party; meaning, the detrimental reliance is
foreseeable & reasonable, and promisee changes his/her legal position in reliance on the
promise.
Injustice results. The promisor is "estopped" (prohibited) from claiming that no contract exists,
thus requiring performance by the promisor.
Every valid offer must have 3 parts: - correct answer ✔✔1. Present intent to create a contract if
the offeree accepts
2. Specific/ definite terms
3. Communication to the offeree
Present Intent to Create a Contract - correct answer ✔✔Objective Standard of Intent: Would a
reasonable person believe that the offer would make someone believe a contract would be
formed if accepted?
