LGS 200- ABIGAIL HAMMOND- EXAM 2 QUESTIONS AND
ANSWERS GRADED A+ 100% VERIFIED.
Contract ANS >>> An agreement that can be enforced in court; formed
by two parties, each of whom agrees to perform or to refrain from
performing some act now or in the future.
What are the two parties involved in every contract? ANS >>> 1.
Offeror - A person who makes an offer.
2. Offeree - A person to whom an offer is made.
When is intent important? ANS >>> In determining whether a contract
has been formed. The intent is determined by the objective theory of
contracts.
Objective theory of contracts ANS >>> A theory under which the intent
to form a contract will be judged by outward, objective facts (what the
party said when entering into the contract, how the party acted or
appeared, and the circumstances surrounding the transaction) as
,interpreted by a reasonable person, rather than by the party's own
secret, subjective intentions.
Objective facts might include: 1. What a party said when entering into
the contract 2. How a party acted or appeared 3. The circumstances
surrounding the transaction
What are the four requirements that must be met before a valid
contract exists? ANS >>> 1. Agreement • an offer by one party to
enter into the agreement and an acceptance of the terms of the offer
by another party. 2. Consideration • Any promises made by the parties
to the contract must be supported by legally sufficient and bargained-
for consideration (something of value received or promised, such as
money, to convince a person to make a deal). 3. Contractual capacity •
Both parties entering into the contract must have the contractual
capacity. That is, the law must recognize them as possessing
characteristics that qualify them as competent parties. 4. Legality • The
contract's purpose must be to accomplish some goal that is legal and
not against public policy.
What are the requirements typically raised as defences to the
enforceability of an otherwise valid contract? ANS >>> 1. Voluntary
consent • The consent of both parties must be voluntary
2. Form • The contract must be in whatever form the law requires.
(Slide 5 for examples)
Types of contracts: Formation ANS >>> 1. Bilateral—A promise for a
promise.
,2. Unilateral—A promise for an act—that is, acceptance is the
completed performance of the act.
3. Formal—Requires a special form for creation.
4. Informal—Requires no special form for creation.
5. Express—Formed by words, such as oral, written, or a combination.
6. Implied—Formed by the conduct of the parties.
Types of contracts: Performance ANS >>> 1. Executed—A fully
performed contract.
2. Executory—A contract not fully performed.
Types of contracts: enforceability ANS >>> 1. Valid—The contract has
the necessary contractual elements: agreement (offer and acceptance),
consideration, legal capacity of the parties, and legal purpose.
2. Unenforceable—A contract exists, but it cannot be enforced because
of a legal defence.
3. Voidable—One party has the option of avoiding or enforcing the
contractual obligation.
4. Void—No contract exists, or there is a contract without legal
obligations.
Agreement Definition ANS >>> A meeting of two or more minds in
regard to the terms of a contract.
, Agreement events ANS >>> 1. An offer by one party to form a contract
(offeror)
2. An acceptance of the offer by the person to whom the offer is made
(offeree)
Agreement decisions ANS >>> 1. Both parties must manifest to each
other their mutual agreement to the same bargain.
2. Once an agreement is reached, if the other elements of a contract
(consideration, capacity, and legality) are present, a valid contract is
formed.
Offer ANS >>> A promise or commitment to perform or refrain from
performing some specified act in the future.
What are the three elements that are necessary for an offer to be
effective? ANS >>> 1. The offeror must have a serious intention to
become bound by the offer.
2. The terms of the offer must be reasonably certain, or definite, so that
the parties and the court can make sure the terms of the contract.
3. The offer must be communicated to the offeree.
What are the ways an offer can be terminated? ANS >>> • Termination
by Action of the Offeror
• Termination by Action of the Offeree
ANSWERS GRADED A+ 100% VERIFIED.
Contract ANS >>> An agreement that can be enforced in court; formed
by two parties, each of whom agrees to perform or to refrain from
performing some act now or in the future.
What are the two parties involved in every contract? ANS >>> 1.
Offeror - A person who makes an offer.
2. Offeree - A person to whom an offer is made.
When is intent important? ANS >>> In determining whether a contract
has been formed. The intent is determined by the objective theory of
contracts.
Objective theory of contracts ANS >>> A theory under which the intent
to form a contract will be judged by outward, objective facts (what the
party said when entering into the contract, how the party acted or
appeared, and the circumstances surrounding the transaction) as
,interpreted by a reasonable person, rather than by the party's own
secret, subjective intentions.
Objective facts might include: 1. What a party said when entering into
the contract 2. How a party acted or appeared 3. The circumstances
surrounding the transaction
What are the four requirements that must be met before a valid
contract exists? ANS >>> 1. Agreement • an offer by one party to
enter into the agreement and an acceptance of the terms of the offer
by another party. 2. Consideration • Any promises made by the parties
to the contract must be supported by legally sufficient and bargained-
for consideration (something of value received or promised, such as
money, to convince a person to make a deal). 3. Contractual capacity •
Both parties entering into the contract must have the contractual
capacity. That is, the law must recognize them as possessing
characteristics that qualify them as competent parties. 4. Legality • The
contract's purpose must be to accomplish some goal that is legal and
not against public policy.
What are the requirements typically raised as defences to the
enforceability of an otherwise valid contract? ANS >>> 1. Voluntary
consent • The consent of both parties must be voluntary
2. Form • The contract must be in whatever form the law requires.
(Slide 5 for examples)
Types of contracts: Formation ANS >>> 1. Bilateral—A promise for a
promise.
,2. Unilateral—A promise for an act—that is, acceptance is the
completed performance of the act.
3. Formal—Requires a special form for creation.
4. Informal—Requires no special form for creation.
5. Express—Formed by words, such as oral, written, or a combination.
6. Implied—Formed by the conduct of the parties.
Types of contracts: Performance ANS >>> 1. Executed—A fully
performed contract.
2. Executory—A contract not fully performed.
Types of contracts: enforceability ANS >>> 1. Valid—The contract has
the necessary contractual elements: agreement (offer and acceptance),
consideration, legal capacity of the parties, and legal purpose.
2. Unenforceable—A contract exists, but it cannot be enforced because
of a legal defence.
3. Voidable—One party has the option of avoiding or enforcing the
contractual obligation.
4. Void—No contract exists, or there is a contract without legal
obligations.
Agreement Definition ANS >>> A meeting of two or more minds in
regard to the terms of a contract.
, Agreement events ANS >>> 1. An offer by one party to form a contract
(offeror)
2. An acceptance of the offer by the person to whom the offer is made
(offeree)
Agreement decisions ANS >>> 1. Both parties must manifest to each
other their mutual agreement to the same bargain.
2. Once an agreement is reached, if the other elements of a contract
(consideration, capacity, and legality) are present, a valid contract is
formed.
Offer ANS >>> A promise or commitment to perform or refrain from
performing some specified act in the future.
What are the three elements that are necessary for an offer to be
effective? ANS >>> 1. The offeror must have a serious intention to
become bound by the offer.
2. The terms of the offer must be reasonably certain, or definite, so that
the parties and the court can make sure the terms of the contract.
3. The offer must be communicated to the offeree.
What are the ways an offer can be terminated? ANS >>> • Termination
by Action of the Offeror
• Termination by Action of the Offeree
