Contracts Exam
Define 'legal insanity and intoxication' and explain how they affect the capacity to contract -
correct answer-Mentally incompetent or intoxicated means unable to bargain effectively; void
if judged insane, voidable if not judged insane
Define Acceptance - correct answer-the agreement of the offeree to the terms of the offer in
the contract made by the offeror
Define Accord and Satisfaction - correct answer-Essentially settling; accord is agreement to
accept different (less) than what was originally due, satisfaction is performance of the accord
Define Agreement - correct answer-an offer by one party (or offeror) to enter into a contract
and an acceptance of the terms of the offer by the other party (offeree)
Define and apply the doctrine of promissory Estoppel - correct answer-1. detrimental
reliance on a promise. Prevents the promisor from revoking his promise
2. if one acts in reliance on another's promise and suffers harm as a result, a contract will be
implied; example: church promised organ, church renovates area for organ, organ not
delivered means wasted funds
Define and describe the Infancy Doctrine - correct answer-A doctrine that allows minors to
disaffirm or cancel most contracts they have entered into with adults. Doctrine based on
public policy that reasons that minors should be protected from unscrupulous behavior of
adults.
Define consideration and explain the requirements of consideration - correct
answer-something of value given in exchange for something else of value; it must be the
product of a mutually bargained-for exchange
1. For a promise to be enforced there must be consideration.
2. Promissory Estoppel is the legal enforcement of an otherwise unenforceable contract due
to a parties detrimental reliance on the contract.
3. The court seldom considers adequacy of consideration.
Define Contract - correct answer-A set of legally enforceable promises.
Define Counter offer and explain its effects - correct answer-Works as a rejection of previous
offer and replaces as new offer; switches roles of offeror and offeree
Define gift promise and identify whether it is enforceable and why. - correct answer-Promise
to give something for free; not enforceable because it lacks consideration
Define injunction - correct answer-Injunction: forbid a breach when it will cause irreparable
harm
Define 'legal insanity and intoxication' and explain how they affect the capacity to contract -
correct answer-Mentally incompetent or intoxicated means unable to bargain effectively; void
if judged insane, voidable if not judged insane
Define Acceptance - correct answer-the agreement of the offeree to the terms of the offer in
the contract made by the offeror
Define Accord and Satisfaction - correct answer-Essentially settling; accord is agreement to
accept different (less) than what was originally due, satisfaction is performance of the accord
Define Agreement - correct answer-an offer by one party (or offeror) to enter into a contract
and an acceptance of the terms of the offer by the other party (offeree)
Define and apply the doctrine of promissory Estoppel - correct answer-1. detrimental
reliance on a promise. Prevents the promisor from revoking his promise
2. if one acts in reliance on another's promise and suffers harm as a result, a contract will be
implied; example: church promised organ, church renovates area for organ, organ not
delivered means wasted funds
Define and describe the Infancy Doctrine - correct answer-A doctrine that allows minors to
disaffirm or cancel most contracts they have entered into with adults. Doctrine based on
public policy that reasons that minors should be protected from unscrupulous behavior of
adults.
Define consideration and explain the requirements of consideration - correct
answer-something of value given in exchange for something else of value; it must be the
product of a mutually bargained-for exchange
1. For a promise to be enforced there must be consideration.
2. Promissory Estoppel is the legal enforcement of an otherwise unenforceable contract due
to a parties detrimental reliance on the contract.
3. The court seldom considers adequacy of consideration.
Define Contract - correct answer-A set of legally enforceable promises.
Define Counter offer and explain its effects - correct answer-Works as a rejection of previous
offer and replaces as new offer; switches roles of offeror and offeree
Define gift promise and identify whether it is enforceable and why. - correct answer-Promise
to give something for free; not enforceable because it lacks consideration
Define injunction - correct answer-Injunction: forbid a breach when it will cause irreparable
harm
