BMAL-590 FOUNDATIONS OF LEGAL ENVIRONMENT OF BUSINESS EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ 100% GUARANTEED PASS

BMAL-590 FOUNDATIONS OF LEGAL ENVIRONMENT OF BUSINESS EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS GRADED A++ 100% GUARANTEED PASS Contract a promise (it can be more than one promise) that, if unfulfilled or breached, provides the other party a legal remedy to seek damages or other relief. A contract is comprised of voluntary promises made by and between parties that the law, if required, will enforce. Some special types of contracts are backed by statute (law made by legislature). Not everyone can enter into a contract. State laws permit contracts to be entered into once a person has attained a certain age (usually eighteen) and with mental capacity to understand the contract. Bilateral Contract A promise made in exchange for another promise Unilateral Contract A promise in exchange for an act Common components of contracts 1. Offer + acceptance = agreement 2. Consideration (bargained-for exchange) 3. Capacity 4. Legal purpose Offer An offer refers to one party expressing willingness to enter into a contract. By implication, a contract requires each party to give up something in order to gain something. An offer can be made in writing, orally, or any combination thereof. The validity of an offer can be explicitly stated. When not stated, the offer is valid for a reasonable period, based on the circumstances. Power of acceptance Power of acceptance refers to the right of a person or persons receiving the offer to accept the offer and thus create a binding contract. The party receiving the offer must convey acceptance to the offeror(person who made the offer). The acceptance is legally valid when it is deposited with the U.S. Postal Service. This is called "The Mailbox Rule". If the acceptance is not mailed, it may be expressed in any way that is reasonable, or as required by the offeror. Mirror image Under common law, an acceptance must be the mirror image of the offer, i.e., it must accept exactly what was offered. If not a mirror-image acceptance, it is consideration a rejection and counteroffer. A power of acceptance can be terminated by any of the following: Revocation of offer by the offeror. Rejection of offer by the offeree. Death or incapacity of either party. Lapse of time. Failure to meet a specific condition. Consideration Refers to the value exchanged during the contract: each party gives up something in order to gain something. In most business situations, money is exchanged for products or services. In some cases, it can be something in kind. Example: A person selling a used vacuum cleaner to another person may receive a mutually acceptable amount for the appliance. Or, a person may exchange the vacuum cleaner for a blender (a barter). Capacity