BUL 4421 final exam
1. Contract a promise or set of promises for the breach of which the law gives a remedy or
the performance of which the law in some way recognizes a duty.
2. a legally binding Agreement
contract requires consideration
four elements: capacity
legal object
3. agreement consists of an offer by one party, called the offeror, to enter into a contract and an
acceptance of the terms of the offer by the other party, called the offeree.
4. offeror vs. offer- offeror - party who makes the offer
ee offeree - party to whom the offer is made
5. consideration the bargained-for exchange or what each party gets in exchange for his or her
promise under the contract.
- what a legal entity receives in return for performing a contract obligation
6. contractual ca- the legal ability to enter into a binding agreement
pacity
Most adults over the age of majority have capacity; those under the age of
majority, people suffering from mental illness, and sufficiently intoxicated persons
do not
7. objective theory we base the existence of a contract on the parties' outward manifestations of intent
of contracts and we base its interpretation on how a reasonable person would interpret it
The subjective intent of parties is not usually relevant; what matters is how they
represented their intent through their actions and words
8. bilateral contract a promise in exchange for a promise. As soon as the promises exchanged, a
contract is formed and the parties' legal obligations arise
, BUL 4421 final exam
9. unilateral con- requires performance in order to form a contract (1.e. a promise + a requested
tract action). The offeror wants the offeree to do something, not promise to do some-
thing.
- only performance by the offeree constitutes a valid acceptance
10. Express Contract the terms of the contract are all clearly set forth in either written or spoken words
11. implied contract arise not from words but from the conduct of the parties
12. quasi contract also called "implied-in-law contracts, but they are not actually contracts. Courts
impose contractual obligations on one of the parties as If a contract existed to
prevent one party from being unjustly enriched at the expense of te other party.
13. void contract not a contract at all. Either its object is illegal or it has some defect so serious it is
not a contract.
14. voidable contract one or both of the parties has the ability to either withdraw from the contract or
enforce it.
15. elements of a 1. offer must be communicated to offeree
valid offer 2.offeror must manifest serious intent to be bound by the acceptance
3. offer must contain reasonable definite terms
16. option contract the offeree gives the offeror consideration in exchange for holding the offer open
for a specified period of time. The offer is irrevocable for that period of time.
17. elements of a 1. Offer must be communicated to offeree
valid offer: 2. Offeror must manifest the intent to be bound by the acceptance
3. Offer must include all material terms
18. revocation the offeror can revoke the offer at any time unless the offeree entered into an
option contract with the offeror. Revocation is effective when the offeree receives
it.
, BUL 4421 final exam
19. rejection another way to terminate the offer, effectuated by the offeree.
Regardless of how long the offer was stated to be open, once the offeree rejects
it, it is terminated.
20. counteroffer an offer made by an offeree to his offeror relating to the same matter as the
original and proposing a substituted bargain differing from that proposed in the
original offer
21. mirror image The terms of the acceptance must mirror the terms of the offer exactly for common
rule law contracts. If not, no contract is formed and the purported acceptance is treated
as a counteroffer.
22. destruction or If the subject matter of the offer is destroyed or becomes illegal, the offer
subsequent ille- immediately terminates.
gality of the sub-
ject matter
23. Lapse of time If the offer states it will be held open for only a certain time, it terminates when
that time expires.
-In the absence of such a time condition, the offer will expire after the lapse of a
reasonable amount of time.
24. authorized -If the offer specifies that acceptance must be communicated by a specific mode,
means of that mode is the only means for accepting the offer.
acceptance
-If no mode of communication is specified in the offer, any reasonable means of
acceptance is valid.
25. types of consid- -A benefit to the promisee
eration -A detriment to the promisor
-A promise to do something
-A promise to refrain from doing something
1. Contract a promise or set of promises for the breach of which the law gives a remedy or
the performance of which the law in some way recognizes a duty.
2. a legally binding Agreement
contract requires consideration
four elements: capacity
legal object
3. agreement consists of an offer by one party, called the offeror, to enter into a contract and an
acceptance of the terms of the offer by the other party, called the offeree.
4. offeror vs. offer- offeror - party who makes the offer
ee offeree - party to whom the offer is made
5. consideration the bargained-for exchange or what each party gets in exchange for his or her
promise under the contract.
- what a legal entity receives in return for performing a contract obligation
6. contractual ca- the legal ability to enter into a binding agreement
pacity
Most adults over the age of majority have capacity; those under the age of
majority, people suffering from mental illness, and sufficiently intoxicated persons
do not
7. objective theory we base the existence of a contract on the parties' outward manifestations of intent
of contracts and we base its interpretation on how a reasonable person would interpret it
The subjective intent of parties is not usually relevant; what matters is how they
represented their intent through their actions and words
8. bilateral contract a promise in exchange for a promise. As soon as the promises exchanged, a
contract is formed and the parties' legal obligations arise
, BUL 4421 final exam
9. unilateral con- requires performance in order to form a contract (1.e. a promise + a requested
tract action). The offeror wants the offeree to do something, not promise to do some-
thing.
- only performance by the offeree constitutes a valid acceptance
10. Express Contract the terms of the contract are all clearly set forth in either written or spoken words
11. implied contract arise not from words but from the conduct of the parties
12. quasi contract also called "implied-in-law contracts, but they are not actually contracts. Courts
impose contractual obligations on one of the parties as If a contract existed to
prevent one party from being unjustly enriched at the expense of te other party.
13. void contract not a contract at all. Either its object is illegal or it has some defect so serious it is
not a contract.
14. voidable contract one or both of the parties has the ability to either withdraw from the contract or
enforce it.
15. elements of a 1. offer must be communicated to offeree
valid offer 2.offeror must manifest serious intent to be bound by the acceptance
3. offer must contain reasonable definite terms
16. option contract the offeree gives the offeror consideration in exchange for holding the offer open
for a specified period of time. The offer is irrevocable for that period of time.
17. elements of a 1. Offer must be communicated to offeree
valid offer: 2. Offeror must manifest the intent to be bound by the acceptance
3. Offer must include all material terms
18. revocation the offeror can revoke the offer at any time unless the offeree entered into an
option contract with the offeror. Revocation is effective when the offeree receives
it.
, BUL 4421 final exam
19. rejection another way to terminate the offer, effectuated by the offeree.
Regardless of how long the offer was stated to be open, once the offeree rejects
it, it is terminated.
20. counteroffer an offer made by an offeree to his offeror relating to the same matter as the
original and proposing a substituted bargain differing from that proposed in the
original offer
21. mirror image The terms of the acceptance must mirror the terms of the offer exactly for common
rule law contracts. If not, no contract is formed and the purported acceptance is treated
as a counteroffer.
22. destruction or If the subject matter of the offer is destroyed or becomes illegal, the offer
subsequent ille- immediately terminates.
gality of the sub-
ject matter
23. Lapse of time If the offer states it will be held open for only a certain time, it terminates when
that time expires.
-In the absence of such a time condition, the offer will expire after the lapse of a
reasonable amount of time.
24. authorized -If the offer specifies that acceptance must be communicated by a specific mode,
means of that mode is the only means for accepting the offer.
acceptance
-If no mode of communication is specified in the offer, any reasonable means of
acceptance is valid.
25. types of consid- -A benefit to the promisee
eration -A detriment to the promisor
-A promise to do something
-A promise to refrain from doing something
