LEGL 2700 EXAM 3 QUESTIONS AND
ANSWERS 100% PASS 2026/2027
Contracts - ANS Legally enforceable promise or exchange of promises
Why do we preform under contracts - ANS 1) Courts enforce contracts
2) Financial Consequences
3) Keep business relationships/reputation
Sources of Contract Law - ANS Legislation: contracts for "goods" - Uniform Commercial Code
Common Law: all other contracts - Judges' Decisions (services, real property, employment)
Types of Contracts - ANS Bilateral vs. Unilateral
Express vs. Implied
Executory vs. Executed
Valid vs. Unenforceable vs. Voidable vs. Void
Bilateral Contract - ANS promise for a promise
both parties have duty to preform once contract is performed
Tod's promise to pay $40 for comforter. Dr. Ho promises to deliver comforter.
Unilateral Contract - ANS An agreement with only one person. Only one party is obligated to
perform.
2026/2027 ALLRIGHTS RESERVED
1
,Tod's promise to transfers his car to Joe upon performance. Joe's right to receive the car if he
performs.
Express Contracts - ANS The parties show their agreement in words.
Implied-in-fact Contract - ANS a contract in which agreement between parties has been
inferred from their conduct
Implied-in-law contract - ANS judicial remedy to prevent one party from receiving unjust
enrichment.
remedy applies when no actual contract exists to cover the dispute
Fiola hires Tring Painters to paint her living room. She selects deluxe paints that will cost her
$200. When the painters begin their work, Fiola notices that they are mistakenly using washable
finesse paints, which will cost her $500. When the work is done, Fiola refuses to pay Tring
Painters the $500 saying she wanted paints that would cost $200. - ANS Implied-in-law
contract: Tring paint wanted to use $200 paint not $500 paint
Enforceable - ANS agreement will be upheld in court
Unenforceable - ANS when the parties intend to form a valid bargain but some rule of law
prevents enforcement
Executed vs. Executory Contract - ANS Executed: fully performed
Executory: performance yet to be completed
Valid - ANS agreement is enforceable bc all elements are met
Void - ANS agreement lacks an essential element
2026/2027 ALLRIGHTS RESERVED
2
, At what point is Tod's contract with Dr. Ho executed?
At what is Tod's contract with his roommate executed? - ANS Executed when Tod sends $40
When Tod transfers car to Joe/Joe performs
Offer - ANS contains a specific promise and a specific demand
offeror must intent to make the offer by making a commitment to the offeree
contractual terms must be definite and specific
Voidable - ANS at least one party can withdraw
Exception to requirement for definite terms - ANS Sale of goods (UCC): The parties may leave
open non-quantity terms to be determined later
Rick's Hardware calls SteelMow and places an order for 15 riding lawnmowers and says they can
settle on the price later. SteelMow accepts. When SteelMow reaches out to settle on a price,
Rick's Hardware says it decided to buy mowers from another vendor and it's not bound because
they never settled on a price. - ANS Sale of goods: lawnmower is a movable tangible item,
have enforceable contract because SteelMow accepted (known quantity)
Termination of an offer - ANS revocation, rejection, counteroffer, expiration of time, death or
insanity, destruction of subject matter, illegality of subject matter
Harry offers Tanya $800,000 for her condo in NYC. Tanya reviews Harry's offer and and offers to
sell her condo to Harry for 850,000. Disappointed Harry decides he doesn't want the condo.
Realizing Harry is walking away, Tanya tells Harry she will accept the $800,000. Harry no longer
wants to purchase the condo. Can Tanya force Harry to buy the condo? - ANS Real property
for sale (UCC doesn't apply)
Tanya counteroffers Harry and rejects. Counteroffer terminates the first offer Harry offered
Acceptance - ANS Necessary to create a valid and enforceable contract.
Bilateral contract is accepted when offeree has made the required promise.
2026/2027 ALLRIGHTS RESERVED
3
ANSWERS 100% PASS 2026/2027
Contracts - ANS Legally enforceable promise or exchange of promises
Why do we preform under contracts - ANS 1) Courts enforce contracts
2) Financial Consequences
3) Keep business relationships/reputation
Sources of Contract Law - ANS Legislation: contracts for "goods" - Uniform Commercial Code
Common Law: all other contracts - Judges' Decisions (services, real property, employment)
Types of Contracts - ANS Bilateral vs. Unilateral
Express vs. Implied
Executory vs. Executed
Valid vs. Unenforceable vs. Voidable vs. Void
Bilateral Contract - ANS promise for a promise
both parties have duty to preform once contract is performed
Tod's promise to pay $40 for comforter. Dr. Ho promises to deliver comforter.
Unilateral Contract - ANS An agreement with only one person. Only one party is obligated to
perform.
2026/2027 ALLRIGHTS RESERVED
1
,Tod's promise to transfers his car to Joe upon performance. Joe's right to receive the car if he
performs.
Express Contracts - ANS The parties show their agreement in words.
Implied-in-fact Contract - ANS a contract in which agreement between parties has been
inferred from their conduct
Implied-in-law contract - ANS judicial remedy to prevent one party from receiving unjust
enrichment.
remedy applies when no actual contract exists to cover the dispute
Fiola hires Tring Painters to paint her living room. She selects deluxe paints that will cost her
$200. When the painters begin their work, Fiola notices that they are mistakenly using washable
finesse paints, which will cost her $500. When the work is done, Fiola refuses to pay Tring
Painters the $500 saying she wanted paints that would cost $200. - ANS Implied-in-law
contract: Tring paint wanted to use $200 paint not $500 paint
Enforceable - ANS agreement will be upheld in court
Unenforceable - ANS when the parties intend to form a valid bargain but some rule of law
prevents enforcement
Executed vs. Executory Contract - ANS Executed: fully performed
Executory: performance yet to be completed
Valid - ANS agreement is enforceable bc all elements are met
Void - ANS agreement lacks an essential element
2026/2027 ALLRIGHTS RESERVED
2
, At what point is Tod's contract with Dr. Ho executed?
At what is Tod's contract with his roommate executed? - ANS Executed when Tod sends $40
When Tod transfers car to Joe/Joe performs
Offer - ANS contains a specific promise and a specific demand
offeror must intent to make the offer by making a commitment to the offeree
contractual terms must be definite and specific
Voidable - ANS at least one party can withdraw
Exception to requirement for definite terms - ANS Sale of goods (UCC): The parties may leave
open non-quantity terms to be determined later
Rick's Hardware calls SteelMow and places an order for 15 riding lawnmowers and says they can
settle on the price later. SteelMow accepts. When SteelMow reaches out to settle on a price,
Rick's Hardware says it decided to buy mowers from another vendor and it's not bound because
they never settled on a price. - ANS Sale of goods: lawnmower is a movable tangible item,
have enforceable contract because SteelMow accepted (known quantity)
Termination of an offer - ANS revocation, rejection, counteroffer, expiration of time, death or
insanity, destruction of subject matter, illegality of subject matter
Harry offers Tanya $800,000 for her condo in NYC. Tanya reviews Harry's offer and and offers to
sell her condo to Harry for 850,000. Disappointed Harry decides he doesn't want the condo.
Realizing Harry is walking away, Tanya tells Harry she will accept the $800,000. Harry no longer
wants to purchase the condo. Can Tanya force Harry to buy the condo? - ANS Real property
for sale (UCC doesn't apply)
Tanya counteroffers Harry and rejects. Counteroffer terminates the first offer Harry offered
Acceptance - ANS Necessary to create a valid and enforceable contract.
Bilateral contract is accepted when offeree has made the required promise.
2026/2027 ALLRIGHTS RESERVED
3
