LAW 2221 FINAL DOVE TROY
UNIVERSITY EXAM QUESTIONS AND
ANSWERS 100% PASS
What are the four required elements of a valid contract? - ANS Agreement, consideration,
capacity, legality.
What are the three requirements of an offer? - ANS Intent, definite terms, communication to
offeree.
Are advertisements usually offers? Why or why not? - ANS No — they are invitations to
negotiate unless they use 'first come first served' or 'while supplies last.'
What is the mirror image rule? - ANS Acceptance must match the offer exactly (common
law).
Under the mailbox rule, when is acceptance effective? - ANS When it is sent.
Name three ways an offer can terminate by operation of law. - ANS Lapse of time, death of
offeror, destruction of subject matter, illegality.
What are the two parts of consideration? - ANS Legally sufficient value + bargained-for
exchange.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is the preexisting duty rule? - ANS You cannot use a duty you already owe as new
consideration.
What is past consideration? - ANS Something given in the past — not valid consideration.
What is an illusory promise? - ANS A promise with no real commitment (not enforceable).
What is promissory estoppel? - ANS A clear promise + reasonable reliance + detriment +
injustice without enforcement.
What are the three major capacity issues? - ANS Minors, intoxication, mental incompetence.
What is the effect of a contract made by a minor? - ANS It is voidable by the minor.
What happens to illegal contracts? - ANS They are void.
What are the types of contract fraud? - ANS Misrepresentation of material fact + intent +
reliance + damages.
What is duress? - ANS Wrongful threat that prevents free will.
What is undue influence? - ANS Pressure from a trusted relationship that overcomes free
will.
Name three contracts that fall under the Statute of Frauds (common law). - ANS Real estate,
contracts not performable within one year, goods over $500 (UCC).
What does the parol evidence rule do? - ANS Excludes outside evidence that contradicts a
written contract.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is substantial performance? - ANS Performance that is not perfect but close enough; no
material breach.
What is a material breach? - ANS A serious breach that defeats the purpose of the contract.
What is the default standard of performance? - ANS Reasonable person standard.
What does 'time is of the essence' mean? - ANS Deadlines are strict; delays are material
breaches.
What are compensatory damages? - ANS Direct losses from the breach.
What are consequential damages? - ANS Indirect losses (like lost profits) that were
foreseeable.
What is the duty to mitigate? - ANS The non-breaching party must minimize damages.
What is specific performance? - ANS Court order to perform the contract; used for unique
goods or real estate.
What does UCC apply to? - ANS Sale of goods (tangible + movable).
What does common law apply to? - ANS Real estate and services.
What is the definition of 'merchant' under UCC? - ANS One who regularly deals in the goods
of the contract.
Does UCC require definite terms in offers? - ANS No — terms may be open if intent exists and
a remedy is possible.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
UNIVERSITY EXAM QUESTIONS AND
ANSWERS 100% PASS
What are the four required elements of a valid contract? - ANS Agreement, consideration,
capacity, legality.
What are the three requirements of an offer? - ANS Intent, definite terms, communication to
offeree.
Are advertisements usually offers? Why or why not? - ANS No — they are invitations to
negotiate unless they use 'first come first served' or 'while supplies last.'
What is the mirror image rule? - ANS Acceptance must match the offer exactly (common
law).
Under the mailbox rule, when is acceptance effective? - ANS When it is sent.
Name three ways an offer can terminate by operation of law. - ANS Lapse of time, death of
offeror, destruction of subject matter, illegality.
What are the two parts of consideration? - ANS Legally sufficient value + bargained-for
exchange.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,What is the preexisting duty rule? - ANS You cannot use a duty you already owe as new
consideration.
What is past consideration? - ANS Something given in the past — not valid consideration.
What is an illusory promise? - ANS A promise with no real commitment (not enforceable).
What is promissory estoppel? - ANS A clear promise + reasonable reliance + detriment +
injustice without enforcement.
What are the three major capacity issues? - ANS Minors, intoxication, mental incompetence.
What is the effect of a contract made by a minor? - ANS It is voidable by the minor.
What happens to illegal contracts? - ANS They are void.
What are the types of contract fraud? - ANS Misrepresentation of material fact + intent +
reliance + damages.
What is duress? - ANS Wrongful threat that prevents free will.
What is undue influence? - ANS Pressure from a trusted relationship that overcomes free
will.
Name three contracts that fall under the Statute of Frauds (common law). - ANS Real estate,
contracts not performable within one year, goods over $500 (UCC).
What does the parol evidence rule do? - ANS Excludes outside evidence that contradicts a
written contract.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, What is substantial performance? - ANS Performance that is not perfect but close enough; no
material breach.
What is a material breach? - ANS A serious breach that defeats the purpose of the contract.
What is the default standard of performance? - ANS Reasonable person standard.
What does 'time is of the essence' mean? - ANS Deadlines are strict; delays are material
breaches.
What are compensatory damages? - ANS Direct losses from the breach.
What are consequential damages? - ANS Indirect losses (like lost profits) that were
foreseeable.
What is the duty to mitigate? - ANS The non-breaching party must minimize damages.
What is specific performance? - ANS Court order to perform the contract; used for unique
goods or real estate.
What does UCC apply to? - ANS Sale of goods (tangible + movable).
What does common law apply to? - ANS Real estate and services.
What is the definition of 'merchant' under UCC? - ANS One who regularly deals in the goods
of the contract.
Does UCC require definite terms in offers? - ANS No — terms may be open if intent exists and
a remedy is possible.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
