LAW 2221 Exam 3 – Legal Environment of Business – Troy University (Instructor:
Dove) – 2026 – Study and Practice Guide
contract - correct answer ✔✔ A legally enforceable agreement
Elements of a Contract - correct answer ✔✔ agreement, consideration, capacity, legality
Sources of Contract Law - correct answer ✔✔ common law and uniform commercial code
Function of Contract Law - correct answer ✔✔ provides assurance to businesses and ensures
safety
UCC - correct answer ✔✔ Uniform Commercial Code
UCC applies to - correct answer ✔✔ contracts to the sale of goods
common law applies - correct answer ✔✔ to services
bilateral - correct answer ✔✔ 2 promises and 2 performances
unilateral - correct answer ✔✔ 1 promise for 1 performance
express - correct answer ✔✔ parties knowingly and intentionally enter into an agreement
agreement - correct answer ✔✔ Offer + Acceptance
, implied-in-law contract - correct answer ✔✔ quasi contract
Mirror Image Rule - correct answer ✔✔ A common law rule that requires that the terms of the
offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be
formed.
Mailbox Rule - correct answer ✔✔ A rule providing that an acceptance of an offer becomes
effective on dispatch.
unjust enrichment - correct answer ✔✔ one party benefiting unfairly at another's expense
Revocation - correct answer ✔✔ cancellation of the offer
offer is revocable: - correct answer ✔✔ any time before acceptance
lapse of time - correct answer ✔✔ offer remains open for the time period specified or, if no
time is stated, for a reasonable period of time
Past Consideration - correct answer ✔✔ when someone promises to give you something in
return for something you've already done
Preexisting Duty Rule - correct answer ✔✔ promises to do what one is already bound to do is
not consideration
Illusory Promise - correct answer ✔✔ promise that in fact does not impose any obligation on
the promisor
revocation by offer can be: - correct answer ✔✔ express or implied
Dove) – 2026 – Study and Practice Guide
contract - correct answer ✔✔ A legally enforceable agreement
Elements of a Contract - correct answer ✔✔ agreement, consideration, capacity, legality
Sources of Contract Law - correct answer ✔✔ common law and uniform commercial code
Function of Contract Law - correct answer ✔✔ provides assurance to businesses and ensures
safety
UCC - correct answer ✔✔ Uniform Commercial Code
UCC applies to - correct answer ✔✔ contracts to the sale of goods
common law applies - correct answer ✔✔ to services
bilateral - correct answer ✔✔ 2 promises and 2 performances
unilateral - correct answer ✔✔ 1 promise for 1 performance
express - correct answer ✔✔ parties knowingly and intentionally enter into an agreement
agreement - correct answer ✔✔ Offer + Acceptance
, implied-in-law contract - correct answer ✔✔ quasi contract
Mirror Image Rule - correct answer ✔✔ A common law rule that requires that the terms of the
offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be
formed.
Mailbox Rule - correct answer ✔✔ A rule providing that an acceptance of an offer becomes
effective on dispatch.
unjust enrichment - correct answer ✔✔ one party benefiting unfairly at another's expense
Revocation - correct answer ✔✔ cancellation of the offer
offer is revocable: - correct answer ✔✔ any time before acceptance
lapse of time - correct answer ✔✔ offer remains open for the time period specified or, if no
time is stated, for a reasonable period of time
Past Consideration - correct answer ✔✔ when someone promises to give you something in
return for something you've already done
Preexisting Duty Rule - correct answer ✔✔ promises to do what one is already bound to do is
not consideration
Illusory Promise - correct answer ✔✔ promise that in fact does not impose any obligation on
the promisor
revocation by offer can be: - correct answer ✔✔ express or implied
