BLAW 371 EXAM #4 STUDY GUIDE 2026
Freedom of contract - Answers -responsibility to those who agree to create binding
relationships
Have the right to enter into a contract
With this comes responsibility
Restatement of contracts - Answers -Manifestation of willingness to enter into a bargain
Made to justify another person in understanding that his asset to the bargain is invited
and will conclude it
Uniform Commercial Code - Answers -All states have adopted except Louisiana
Governs all commercial transactions
Many countries rely on code law only for their basic legal framework
Lex Mercatoria - Answers -The law of merchants that originated in English courts
Binding Promise - Answers -Promise in which the court can enforce it
Purpose of Contract law - Answers -designed to enforce agreements that have some
type of binding promise/agreement
Non-binding process - Answers -no consideration - court cant enforce
Express Contract - Answers -Terms have been set out
Implied Contract - Answers -Do not have any words but because of performance there
is a certain agreement (grocery shopping)
Elements of a valid contract - Answers -offer, acceptance, consideration, capacity,
legality
Preliminary negotiation - Answers -Not a firm offer
Ads - Answers -Not a binding offer, Preliminary negotiation
Communication of offer + acceptance - Answers -Define terms and conditions, as well
as communicate them to other party
Termination or withdrawal of offer - Answers -Revocation, Rejection, by operation of
law
Option Contracts - Answers -Separate offer and requires additional consideration
(monetary)
, Bilateral - Answers -A promise in exchange for a promise
Contract enforced when exchanging money
Unilateral - Answers -Offer is made but acceptable is performance
Find cat = $100
Enforceable once performance is made
Valid - Answers -All element are meant
Enforceable on both sides
Void - Answers -No contracts
Drugs/subject matter is illegal
voidable - Answers -Capacity
Minors, intoxicated, mental illness
Lebron at 17
Ratification - Answers -reaffirm contract once become adult
Delegation - Answers -Assigned a duty under a contract (agreement with a 3rd party)
Assignment - Answers -Right you have under contract (payment)
Quasi Contract (Unjust enrichment) - Answers -Compensate a person who was unjustly
enriched by the acts of another person
Breach of Contract - Answers -Material breach or minor breach
Material = you dont have to pay for the house
Promissory Estoppel - Answers -Promisor is prevented from denying a promise
Capacity - Answers -Refers to legal ability from denying a promise
Exculpatory agreement - Answers -types of those contracts written to completely
escape liability
very few approved by the court
Unconsciousable contract - Answers -Outcome is grossly unfair to an innocent party
Usury - Answers -the practice of lending money and requiring the borrower to pay a
high amount of interest, considered to be illegal by law
Covenant not to complete - Answers -May be restraint of trade unless limited by time,
territory and ancillary to the contract
Offer used in sale of business
Freedom of contract - Answers -responsibility to those who agree to create binding
relationships
Have the right to enter into a contract
With this comes responsibility
Restatement of contracts - Answers -Manifestation of willingness to enter into a bargain
Made to justify another person in understanding that his asset to the bargain is invited
and will conclude it
Uniform Commercial Code - Answers -All states have adopted except Louisiana
Governs all commercial transactions
Many countries rely on code law only for their basic legal framework
Lex Mercatoria - Answers -The law of merchants that originated in English courts
Binding Promise - Answers -Promise in which the court can enforce it
Purpose of Contract law - Answers -designed to enforce agreements that have some
type of binding promise/agreement
Non-binding process - Answers -no consideration - court cant enforce
Express Contract - Answers -Terms have been set out
Implied Contract - Answers -Do not have any words but because of performance there
is a certain agreement (grocery shopping)
Elements of a valid contract - Answers -offer, acceptance, consideration, capacity,
legality
Preliminary negotiation - Answers -Not a firm offer
Ads - Answers -Not a binding offer, Preliminary negotiation
Communication of offer + acceptance - Answers -Define terms and conditions, as well
as communicate them to other party
Termination or withdrawal of offer - Answers -Revocation, Rejection, by operation of
law
Option Contracts - Answers -Separate offer and requires additional consideration
(monetary)
, Bilateral - Answers -A promise in exchange for a promise
Contract enforced when exchanging money
Unilateral - Answers -Offer is made but acceptable is performance
Find cat = $100
Enforceable once performance is made
Valid - Answers -All element are meant
Enforceable on both sides
Void - Answers -No contracts
Drugs/subject matter is illegal
voidable - Answers -Capacity
Minors, intoxicated, mental illness
Lebron at 17
Ratification - Answers -reaffirm contract once become adult
Delegation - Answers -Assigned a duty under a contract (agreement with a 3rd party)
Assignment - Answers -Right you have under contract (payment)
Quasi Contract (Unjust enrichment) - Answers -Compensate a person who was unjustly
enriched by the acts of another person
Breach of Contract - Answers -Material breach or minor breach
Material = you dont have to pay for the house
Promissory Estoppel - Answers -Promisor is prevented from denying a promise
Capacity - Answers -Refers to legal ability from denying a promise
Exculpatory agreement - Answers -types of those contracts written to completely
escape liability
very few approved by the court
Unconsciousable contract - Answers -Outcome is grossly unfair to an innocent party
Usury - Answers -the practice of lending money and requiring the borrower to pay a
high amount of interest, considered to be illegal by law
Covenant not to complete - Answers -May be restraint of trade unless limited by time,
territory and ancillary to the contract
Offer used in sale of business
