BUL4310 FINAL EXAM SCRIPT 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
◉ Contract law reduces transaction costs by. Answer: 1. Encouraging
the performance of
voluntary agreements by providing a sanction for breach
2. Reducing negotiation costs by
providing standard or customary terms for various types of
transactions; and
3. Discouraging misleading conduct
in contract negotiations.
◉ Contract Law LSB 177. Answer: Ensures that the other party will
act as agreed.
◉ Elements of a Contract. Answer: 1. Offer 2. Acceptance 3.
Consideration 4. Mutuality 5. Capacity 6. Legality * Generally, NOT
form
◉ Mutuality. Answer: Was there a misunderstanding?
Was a party under duress or undue influence?
Did a party lie?
,◉ Capacity. Answer: Do the parties know what's going on?
Do the parties have mental capability?
Do the parties understand key concepts?
◉ Legality. Answer: A contact cannot violate criminal law or
otherwise be against public policy
◉ Form. Answer: There usually is no set format for Contract
Formation.
Contracts do not need to be in complex language.
Most contracts do not have to be written.
◉ Contracts can be _______ and inferred from ____________. Answer:
oral; conduct
◉ Written contract. Answer: serves as evidence: 1. Evidence there
was a contract,
and 2. Evidence of what the parties agreed.
◉ Sale of Goods. Answer: all things (including specially
manufactured goods) which are movable at the time of identification
to the contract for sale
,◉ What Types of Contracts are Governed by Article 2?. Answer: Sale
of goods
◉ Merchants. Answer: a person who deals in goods of the
kind or otherwise by his occupation holds himself out as having
knowledge or skill peculiar to the practices or goods involved in the
transaction.
◉ ____ Nations have adopted the CISG. Answer: 77
◉ Every contract contains. Answer: an implied covenant of good
faith and fair dealing in its performance
◉ Good faith and fair dealing. Answer: Refrain from imposing
improper conditions on the negotiation
Disclose enough about parallel negotiations to allow the other party
to make a counterproposal
Keep negotiating until an agreement has been reached
◉ Objective Facts. Answer: 1. What the party wrote or said when
entering into a contract
2. How the party acted or appeared
3. The circumstances surrounding the transaction
, ◉ Offer. Answer: A definite objective indication communication of
present willingness to be bound
◉ Elements of an offer. Answer: 1. Have objective intent
2. Be sufficiently definite,
3. Be communicated to the offeree
◉ Not Offers. Answer: Plans
Requests for Bids Opinions Price Lists
Statements of Future Intent
Brochures
Agreements to Agree
Announcements
Summaries of Preliminary Negotiation
Invitations
Circulars
Emotional Statements
Catalogues
Advertisements
Price Quotations
QUESTIONS AND SOLUTIONS GRADED A+
◉ Contract law reduces transaction costs by. Answer: 1. Encouraging
the performance of
voluntary agreements by providing a sanction for breach
2. Reducing negotiation costs by
providing standard or customary terms for various types of
transactions; and
3. Discouraging misleading conduct
in contract negotiations.
◉ Contract Law LSB 177. Answer: Ensures that the other party will
act as agreed.
◉ Elements of a Contract. Answer: 1. Offer 2. Acceptance 3.
Consideration 4. Mutuality 5. Capacity 6. Legality * Generally, NOT
form
◉ Mutuality. Answer: Was there a misunderstanding?
Was a party under duress or undue influence?
Did a party lie?
,◉ Capacity. Answer: Do the parties know what's going on?
Do the parties have mental capability?
Do the parties understand key concepts?
◉ Legality. Answer: A contact cannot violate criminal law or
otherwise be against public policy
◉ Form. Answer: There usually is no set format for Contract
Formation.
Contracts do not need to be in complex language.
Most contracts do not have to be written.
◉ Contracts can be _______ and inferred from ____________. Answer:
oral; conduct
◉ Written contract. Answer: serves as evidence: 1. Evidence there
was a contract,
and 2. Evidence of what the parties agreed.
◉ Sale of Goods. Answer: all things (including specially
manufactured goods) which are movable at the time of identification
to the contract for sale
,◉ What Types of Contracts are Governed by Article 2?. Answer: Sale
of goods
◉ Merchants. Answer: a person who deals in goods of the
kind or otherwise by his occupation holds himself out as having
knowledge or skill peculiar to the practices or goods involved in the
transaction.
◉ ____ Nations have adopted the CISG. Answer: 77
◉ Every contract contains. Answer: an implied covenant of good
faith and fair dealing in its performance
◉ Good faith and fair dealing. Answer: Refrain from imposing
improper conditions on the negotiation
Disclose enough about parallel negotiations to allow the other party
to make a counterproposal
Keep negotiating until an agreement has been reached
◉ Objective Facts. Answer: 1. What the party wrote or said when
entering into a contract
2. How the party acted or appeared
3. The circumstances surrounding the transaction
, ◉ Offer. Answer: A definite objective indication communication of
present willingness to be bound
◉ Elements of an offer. Answer: 1. Have objective intent
2. Be sufficiently definite,
3. Be communicated to the offeree
◉ Not Offers. Answer: Plans
Requests for Bids Opinions Price Lists
Statements of Future Intent
Brochures
Agreements to Agree
Announcements
Summaries of Preliminary Negotiation
Invitations
Circulars
Emotional Statements
Catalogues
Advertisements
Price Quotations
