KIN 3802-Chapter 9 (Contract
Considerations) Test Questions
Answered Correctly (2025-2026)
Updated.
Reasons to Conduct and Event in Accordance with Established Laws and Regulations - Answer
- To protect your legal interest
- To operate ethically
- To provide a safe and secure environment
- To protect your financial investment
Contract - Answer - A tool that protects your interests and helps foster partnerships between
the various entities critical for producing events
- A promise that requires that an offer be presented, considered, and accepted and the parties
will enter into a legal relationship
Agreements between events and facilities, events and vendors, and events and ancillary
contractors must be _____________________ and ________________________. - Answer -
Negotiated and formalized
Contracts Consist of Two Parts: - Answer - The specifics of the terms and conditions that
establish the relationship
- The clauses that provide more specific details
Two Types of Contracts - Answer - Bilateral
- Unilateral
Bilateral - Answer - Involves two parties engaging in a promise; both parties have
expectations
- Example: Sponsorship Contract
Unilateral - Answer - Represents the offering and accepting of a promise
- Is one directional; an offer is made but not accepted (the party does not have to agree to the
terms)
- Example: Insurance Contract
Breach of Contract - Answer - Material breach
, - Immaterial (non-material)
Material Breach - Answer - A violation of terms of the contract that results in damages to the
non-breaching party
Immaterial (non-material) - Answer - A violation of terms of the contract - but it does not
result in any damages to the other party involved
Remedies for Breach - Answer - Monetary
- Party in breach could be ordered to perform the expectations of the contract (specific
performance)
Contracts - Answer - Offer
- Acceptance
- Consideration
- Capacity
- Legality
Offer - Answer - The initial promise that one party gives to another to either do something or
not do something. There is usually a price tag included
Acceptance - Answer - When the person being offered something accepts the conditions
Consideration - Answer - Something of value offered by one person in exchange for
something of value from the other person.
- Without consideration the contract would not be binding.
- Example: The exchange of product or service traded for money.
Capacity - Answer - Each party to a contract must have the capacity to enter into the
contract.
- Being of legal age and mentally capable of understanding the conditions of the promise
Legality - Answer - The promise must be based on a legal transaction.
- Both federal and state laws must not be broken in the formation of the contract
Managing Contracts - Answer - Get it in writing
- Read the contract thoroughly
Considerations) Test Questions
Answered Correctly (2025-2026)
Updated.
Reasons to Conduct and Event in Accordance with Established Laws and Regulations - Answer
- To protect your legal interest
- To operate ethically
- To provide a safe and secure environment
- To protect your financial investment
Contract - Answer - A tool that protects your interests and helps foster partnerships between
the various entities critical for producing events
- A promise that requires that an offer be presented, considered, and accepted and the parties
will enter into a legal relationship
Agreements between events and facilities, events and vendors, and events and ancillary
contractors must be _____________________ and ________________________. - Answer -
Negotiated and formalized
Contracts Consist of Two Parts: - Answer - The specifics of the terms and conditions that
establish the relationship
- The clauses that provide more specific details
Two Types of Contracts - Answer - Bilateral
- Unilateral
Bilateral - Answer - Involves two parties engaging in a promise; both parties have
expectations
- Example: Sponsorship Contract
Unilateral - Answer - Represents the offering and accepting of a promise
- Is one directional; an offer is made but not accepted (the party does not have to agree to the
terms)
- Example: Insurance Contract
Breach of Contract - Answer - Material breach
, - Immaterial (non-material)
Material Breach - Answer - A violation of terms of the contract that results in damages to the
non-breaching party
Immaterial (non-material) - Answer - A violation of terms of the contract - but it does not
result in any damages to the other party involved
Remedies for Breach - Answer - Monetary
- Party in breach could be ordered to perform the expectations of the contract (specific
performance)
Contracts - Answer - Offer
- Acceptance
- Consideration
- Capacity
- Legality
Offer - Answer - The initial promise that one party gives to another to either do something or
not do something. There is usually a price tag included
Acceptance - Answer - When the person being offered something accepts the conditions
Consideration - Answer - Something of value offered by one person in exchange for
something of value from the other person.
- Without consideration the contract would not be binding.
- Example: The exchange of product or service traded for money.
Capacity - Answer - Each party to a contract must have the capacity to enter into the
contract.
- Being of legal age and mentally capable of understanding the conditions of the promise
Legality - Answer - The promise must be based on a legal transaction.
- Both federal and state laws must not be broken in the formation of the contract
Managing Contracts - Answer - Get it in writing
- Read the contract thoroughly
