PVL3702 LAW OF CONTRACT EXAM 2025
COMPLETE STUDY GUIDE FINAL SCRIPT
2026 FULL SOLUTIONS AND CORRECT
ANSWERS GRADED A+
⩥ six requisite elements of every valid contract. Answer: 1) offer; 2)
acceptance; 3) consideration; 4) legality of subject matter; 5) contractual
capacity; and 6) contractual intent.
⩥ offer. Answer: proposal by one party to another manifesting an
intention to enter into a valid contract. (every valid contractual
relationship starts with one).
⩥ example of an offer. Answer: "will you buy my used contracts book
for $5?"
⩥ acceptance. Answer: the party to whom the offer is made must accept
the proposal to create the contract.
⩥ example of an acceptance. Answer: "okay i'll take the book."
⩥ mutal assent. Answer: the agreement that the parties do intend to be
contractually bound to each other (the offer and the acceptance
together).
,⩥ consideration. Answer: is the subject matter of the contract it is the
thing for which the parties have bargained. (each party gives and
receives consideration, something of value).
⩥ example of consideration. Answer: the consideration is both the $5
and the book itself.
⩥ offer, acceptance, consideration. Answer: three most important aspects
of every valid contract because they form the provisions of the contract
itself.
⩥ legality of subject matter. Answer: a contract can only be formed for a
legal purpose and must fulfill any statutory regulations with respect to
form.
⩥ example of legality of subject matter. Answer: a major producer of
automobile tires, enters into an agreement, with Goodyear to run Dunlap
tire out of business by fixing prices. (contract is unenforceable because it
is not formed for a legal purpose).
⩥ contractual capacity. Answer: refers to the ability of a person to enter
into a valid contract. (typical examples of capacity (or rather, the lack of
capacity) deal with the age of the party and the person's mental
condition).
, ⩥ example of contractual capacity. Answer: a 14 year old wants to invest
in real estate (his age and presumable lack of experience make him
contractually incapable.
⩥ contractual intent. Answer: it must be shown that the parties did
subjectively intend to form a contractual relationship (not readily
discernible and by the words of the parties themselves, and surrounding
circumstances must be analyzed to determine whether a contract exists
in many instances
⩥ example of lack of contractual intent. Answer: kevin has been forced
to sign a contract at gun point
⩥ classification of contracts. Answer: 1) type of obligation; method of
creation; type of form; timing; and enforceability
⩥ type of obligation. Answer: 1) bilateral: a bilateral contract is a
promise for
a promise.
2) unilateral: a unilateral contract is a promise
for an act.
⩥ method of creation. Answer: 1) express contract: mutual assent of the
COMPLETE STUDY GUIDE FINAL SCRIPT
2026 FULL SOLUTIONS AND CORRECT
ANSWERS GRADED A+
⩥ six requisite elements of every valid contract. Answer: 1) offer; 2)
acceptance; 3) consideration; 4) legality of subject matter; 5) contractual
capacity; and 6) contractual intent.
⩥ offer. Answer: proposal by one party to another manifesting an
intention to enter into a valid contract. (every valid contractual
relationship starts with one).
⩥ example of an offer. Answer: "will you buy my used contracts book
for $5?"
⩥ acceptance. Answer: the party to whom the offer is made must accept
the proposal to create the contract.
⩥ example of an acceptance. Answer: "okay i'll take the book."
⩥ mutal assent. Answer: the agreement that the parties do intend to be
contractually bound to each other (the offer and the acceptance
together).
,⩥ consideration. Answer: is the subject matter of the contract it is the
thing for which the parties have bargained. (each party gives and
receives consideration, something of value).
⩥ example of consideration. Answer: the consideration is both the $5
and the book itself.
⩥ offer, acceptance, consideration. Answer: three most important aspects
of every valid contract because they form the provisions of the contract
itself.
⩥ legality of subject matter. Answer: a contract can only be formed for a
legal purpose and must fulfill any statutory regulations with respect to
form.
⩥ example of legality of subject matter. Answer: a major producer of
automobile tires, enters into an agreement, with Goodyear to run Dunlap
tire out of business by fixing prices. (contract is unenforceable because it
is not formed for a legal purpose).
⩥ contractual capacity. Answer: refers to the ability of a person to enter
into a valid contract. (typical examples of capacity (or rather, the lack of
capacity) deal with the age of the party and the person's mental
condition).
, ⩥ example of contractual capacity. Answer: a 14 year old wants to invest
in real estate (his age and presumable lack of experience make him
contractually incapable.
⩥ contractual intent. Answer: it must be shown that the parties did
subjectively intend to form a contractual relationship (not readily
discernible and by the words of the parties themselves, and surrounding
circumstances must be analyzed to determine whether a contract exists
in many instances
⩥ example of lack of contractual intent. Answer: kevin has been forced
to sign a contract at gun point
⩥ classification of contracts. Answer: 1) type of obligation; method of
creation; type of form; timing; and enforceability
⩥ type of obligation. Answer: 1) bilateral: a bilateral contract is a
promise for
a promise.
2) unilateral: a unilateral contract is a promise
for an act.
⩥ method of creation. Answer: 1) express contract: mutual assent of the
