BULE 303 Exam 2: Chapters 10,11,14
questions and answers
Promise - correct answer ✔✔A declaration by a person(the promisor) to do or not do a certain
action
Contract - correct answer ✔✔A set of promises constituting an agreement between parties,
giving each a legal duty to the other and also the right to seek a remedy for the breach of the
promises or duties
Objective Theory of Contract - correct answer ✔✔The view that contracting parties shall only
be bound by terms that can objectively be inferred from promises made
Bilateral Contract - correct answer ✔✔A type of contract that arises when a promise is given in
exchange for a return promise
Unilateral Contract - correct answer ✔✔A contract that results when an offer can be accepted
only by the offerees performance
Formal Contract - correct answer ✔✔An agreement that by law requires a specific form for its
validity
Informal Contract - correct answer ✔✔A contract that does not require a specific form or
method of creation to be valid
Express Contract - correct answer ✔✔A contract which the terms of the agreement are stated
in words, or written
, Implied Contract - correct answer ✔✔A contract formed in whole or in part from the conduct of
the parties
Executed Contract - correct answer ✔✔A contract that has been fully performed by both parties
Executory Contract - correct answer ✔✔A contract that has not yet been fully performed
Valid Contract - correct answer ✔✔A contract that results when the elements necessary for
contract formation are present
Voidable Contract - correct answer ✔✔A contract that may be legally avoided at the option of
one or both of the parties
Unenforceable Contract - correct answer ✔✔A valid contract rendered unenforceable by some
statute of law
Void Contract - correct answer ✔✔A contract having no legal force or binding effect
Agreement - correct answer ✔✔A mutual understanding or meeting of the minds between two
or more individuals regarding the terms of a contract
Offer - correct answer ✔✔A promise or commitment to perform or refrain from performing
some specified act in the future
Revocation - correct answer ✔✔The withdrawal of a contract offer by the offeror. Unless an
offer is irrevocable, it can be revoked at anytime prior to acceptance without liability
Option Contract - correct answer ✔✔A contract under which the offeror cannot revoke the offer
for a stipulated time period(bc the offeree has given consideration for the offer to remain open
questions and answers
Promise - correct answer ✔✔A declaration by a person(the promisor) to do or not do a certain
action
Contract - correct answer ✔✔A set of promises constituting an agreement between parties,
giving each a legal duty to the other and also the right to seek a remedy for the breach of the
promises or duties
Objective Theory of Contract - correct answer ✔✔The view that contracting parties shall only
be bound by terms that can objectively be inferred from promises made
Bilateral Contract - correct answer ✔✔A type of contract that arises when a promise is given in
exchange for a return promise
Unilateral Contract - correct answer ✔✔A contract that results when an offer can be accepted
only by the offerees performance
Formal Contract - correct answer ✔✔An agreement that by law requires a specific form for its
validity
Informal Contract - correct answer ✔✔A contract that does not require a specific form or
method of creation to be valid
Express Contract - correct answer ✔✔A contract which the terms of the agreement are stated
in words, or written
, Implied Contract - correct answer ✔✔A contract formed in whole or in part from the conduct of
the parties
Executed Contract - correct answer ✔✔A contract that has been fully performed by both parties
Executory Contract - correct answer ✔✔A contract that has not yet been fully performed
Valid Contract - correct answer ✔✔A contract that results when the elements necessary for
contract formation are present
Voidable Contract - correct answer ✔✔A contract that may be legally avoided at the option of
one or both of the parties
Unenforceable Contract - correct answer ✔✔A valid contract rendered unenforceable by some
statute of law
Void Contract - correct answer ✔✔A contract having no legal force or binding effect
Agreement - correct answer ✔✔A mutual understanding or meeting of the minds between two
or more individuals regarding the terms of a contract
Offer - correct answer ✔✔A promise or commitment to perform or refrain from performing
some specified act in the future
Revocation - correct answer ✔✔The withdrawal of a contract offer by the offeror. Unless an
offer is irrevocable, it can be revoked at anytime prior to acceptance without liability
Option Contract - correct answer ✔✔A contract under which the offeror cannot revoke the offer
for a stipulated time period(bc the offeree has given consideration for the offer to remain open
