BLAW 3430 Engler Test 3 ACTUAL
QUESTIONS AND CORRECT ANSWERS
Contractual obligations are recognized - CORRECT ANSWERS
whenever the parties clearly intend to be bound
Contracts are primarily governed by - CORRECT ANSWERS state
common law
Sale of personal property is - CORRECT ANSWERS a large part of
commercial activity
Uniform Commercial Code (The Code, or UCC), Article 2 - CORRECT
ANSWERS Governs sale of personal property in all states, except
Louisiana; Ex. TV set, car, or textbook
A sale consists of - CORRECT ANSWERS the passing of the title to
goods from seller to buyer for a price.
-Contract of sale consists of both sale of present and future goods
Goods - CORRECT ANSWERS Tangible Personal property
Personal Property - CORRECT ANSWERS any property other than an
interest in real property (land)
Common Law - CORRECT ANSWERS governs all contracts outside the
scope of the code
-Code doesn't apply to employment contracts, service, insurance, and contracts
involving real property
,Contract - CORRECT ANSWERS Binding agreement that the courts will
enforce
Promise - CORRECT ANSWERS Demonstrates the intention to act or
refrain from acting in a specified manner.
Breach - CORRECT ANSWERS No legal remedy is available; failure to
properly perform promises.
All contracts are promises - CORRECT ANSWERS but not all promises
are contracts
4 Essential Requirements of a Contract - CORRECT ANSWERS -
Mutual Assent
-Consideration
-Legality of Object
-Capacity/Competence
Mutual Assent - CORRECT ANSWERS offer and acceptance; parties to
a contract must manifest by words or conduct that they have agreed to enter in
to contract
Consideration - CORRECT ANSWERS Must intentionally exchange a
legal benefit or incur a legal detriment as inducement to other party to make
return exchange
Legality of Object - CORRECT ANSWERS Purpose of contract is not
criminal, tortious, or against public policy
, Capacity - CORRECT ANSWERS Parties must have contractual
capacity
Classification of Contracts (5 Columns) - CORRECT ANSWERS -
Unilateral v. Bilateral
-Formal v. Informal
-Expressed/Implied
-Valid, Void, voidable and unforeseeable contracts
-Executed/Executory
Unilateral v. Bilateral - CORRECT ANSWERS Unilateral: Promise for
performance; the performer is under no duty to fulfill the offer if he never
agreed to it
Bilateral: promise for a promise; each party is under duty to another
Formal v. Informal - CORRECT ANSWERS Formal: in writing
Informal: Oral/verbal or otherwise (action/conduct)
Expressed or Implied - CORRECT ANSWERS Express: parties manifest
assent in words; saying
Implied: Formed by conduct; ex. putting drinks on tab; showing
All contracts are expressed or implied in fact/law, but not all expressions are
contracts
Valid - CORRECT ANSWERS meets all of the requirements of a binding
contract; it is enforceable
QUESTIONS AND CORRECT ANSWERS
Contractual obligations are recognized - CORRECT ANSWERS
whenever the parties clearly intend to be bound
Contracts are primarily governed by - CORRECT ANSWERS state
common law
Sale of personal property is - CORRECT ANSWERS a large part of
commercial activity
Uniform Commercial Code (The Code, or UCC), Article 2 - CORRECT
ANSWERS Governs sale of personal property in all states, except
Louisiana; Ex. TV set, car, or textbook
A sale consists of - CORRECT ANSWERS the passing of the title to
goods from seller to buyer for a price.
-Contract of sale consists of both sale of present and future goods
Goods - CORRECT ANSWERS Tangible Personal property
Personal Property - CORRECT ANSWERS any property other than an
interest in real property (land)
Common Law - CORRECT ANSWERS governs all contracts outside the
scope of the code
-Code doesn't apply to employment contracts, service, insurance, and contracts
involving real property
,Contract - CORRECT ANSWERS Binding agreement that the courts will
enforce
Promise - CORRECT ANSWERS Demonstrates the intention to act or
refrain from acting in a specified manner.
Breach - CORRECT ANSWERS No legal remedy is available; failure to
properly perform promises.
All contracts are promises - CORRECT ANSWERS but not all promises
are contracts
4 Essential Requirements of a Contract - CORRECT ANSWERS -
Mutual Assent
-Consideration
-Legality of Object
-Capacity/Competence
Mutual Assent - CORRECT ANSWERS offer and acceptance; parties to
a contract must manifest by words or conduct that they have agreed to enter in
to contract
Consideration - CORRECT ANSWERS Must intentionally exchange a
legal benefit or incur a legal detriment as inducement to other party to make
return exchange
Legality of Object - CORRECT ANSWERS Purpose of contract is not
criminal, tortious, or against public policy
, Capacity - CORRECT ANSWERS Parties must have contractual
capacity
Classification of Contracts (5 Columns) - CORRECT ANSWERS -
Unilateral v. Bilateral
-Formal v. Informal
-Expressed/Implied
-Valid, Void, voidable and unforeseeable contracts
-Executed/Executory
Unilateral v. Bilateral - CORRECT ANSWERS Unilateral: Promise for
performance; the performer is under no duty to fulfill the offer if he never
agreed to it
Bilateral: promise for a promise; each party is under duty to another
Formal v. Informal - CORRECT ANSWERS Formal: in writing
Informal: Oral/verbal or otherwise (action/conduct)
Expressed or Implied - CORRECT ANSWERS Express: parties manifest
assent in words; saying
Implied: Formed by conduct; ex. putting drinks on tab; showing
All contracts are expressed or implied in fact/law, but not all expressions are
contracts
Valid - CORRECT ANSWERS meets all of the requirements of a binding
contract; it is enforceable
