Busfin 3500 Final Exam |Questions With Verified
Answers
Methods of Discharging a Contract: - Correct Answer -Performance
-Happening of a condition or its failure to occur
-Material breach by one or both parties
-Agreement of parties
-Operation of law
Conditional Contract: - Correct Answer Contracts containing conditions affecting the
performance obligation of the parties.
Discharge by Condition Precedent: - Correct Answer a particular event that must occur
in order for a party's duty to arise. If it does not occur, no duty.
Contract - Correct Answer 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
Contract Law falls under what jurisdiction - Correct Answer State
Elements of a Contract - Correct Answer Agreement
Consideration
Legal Capacity
Legal Object
Agreement - Correct Answer consists of an offer by one party to enter into a contract an
acceptance of the terms by the other party
Consideration - Correct Answer the bargained-for exchange for his or her promise
under the contract
Contractual Capacity - Correct Answer legal ability to enter into a binding agreement
,Legal Object - Correct Answer to be enforceable, contract cannot be illegal or against
public policy
Objective Theory of Contracts - Correct Answer In determining whether parties intended
to enter into a contract, courts look at their objective words and behavior, no secret
intentions
Sources of Contract Law - Correct Answer Case Law (Common Law)
Uniform Commercial Code (UCC)
Convention on Contracts for International Sales of Goods (CISG)
Requirements of Enforceable Contract - Correct Answer -Needs the 4 essential
elements
-Legal assent; each party must have freely entered through proper means
-Proper form; some contracts that lack a writing are not enforceable
Bilateral Contract - Correct Answer if the offeror wants a promise from the offeree to
form a binding contract. Promise for promise
Unilateral Contract - Correct Answer offeror wants the offeree to do something, most
common is a reward
Express Contract - Correct Answer Are all clearly set forth in either written or spoken
words
Implied Contract - Correct Answer Arise from the conduct of the parties. Needs 3
conditions:
-Plaintiff provided some property or service to the defendant
-Plaintiff expected to be paid for such property or service
-Defendant had an opportunity to reject the property or service but did not
, Formal Contracts - Correct Answer have a special form or must be created in a specific
manner. 4 types:
-Contracts under seal
-Recognizances
-Letters of Credit
-Negotiable Instruments
Informal (Simple) Contract - Correct Answer no formalities are required in making,
Plain-Meaning Rule - Correct Answer States that if a writing, or a term in question
appears to be plain and unambiguous on its face, we determine its meaning from
exactly what is stated
Elements of the Offer: - Correct Answer -Intent
-Definite and Certain Terms
-Communication to the Offeree
Termination of the Offer (5 ways) - Correct Answer -Revocation by the offeror
-Rejection or counteroffer by the offeree
-Death or incapacity of the offeror
-Destruction of subsequent illegality of the subject matter of the offer
-Lapse of time or failure of other conditions stated
Revocation Exceptions - Correct Answer -Option Contract: in exchange for a piece of
consideration, the offeror will hold the offer open for a period of time (real estate)
-Detrimental Reliance: If the offeree had reasonably relied on the promise to hold the
offer open and took action in reliance on that
The Acceptance - Correct Answer Requirements match the offer requirements
Answers
Methods of Discharging a Contract: - Correct Answer -Performance
-Happening of a condition or its failure to occur
-Material breach by one or both parties
-Agreement of parties
-Operation of law
Conditional Contract: - Correct Answer Contracts containing conditions affecting the
performance obligation of the parties.
Discharge by Condition Precedent: - Correct Answer a particular event that must occur
in order for a party's duty to arise. If it does not occur, no duty.
Contract - Correct Answer 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
Contract Law falls under what jurisdiction - Correct Answer State
Elements of a Contract - Correct Answer Agreement
Consideration
Legal Capacity
Legal Object
Agreement - Correct Answer consists of an offer by one party to enter into a contract an
acceptance of the terms by the other party
Consideration - Correct Answer the bargained-for exchange for his or her promise
under the contract
Contractual Capacity - Correct Answer legal ability to enter into a binding agreement
,Legal Object - Correct Answer to be enforceable, contract cannot be illegal or against
public policy
Objective Theory of Contracts - Correct Answer In determining whether parties intended
to enter into a contract, courts look at their objective words and behavior, no secret
intentions
Sources of Contract Law - Correct Answer Case Law (Common Law)
Uniform Commercial Code (UCC)
Convention on Contracts for International Sales of Goods (CISG)
Requirements of Enforceable Contract - Correct Answer -Needs the 4 essential
elements
-Legal assent; each party must have freely entered through proper means
-Proper form; some contracts that lack a writing are not enforceable
Bilateral Contract - Correct Answer if the offeror wants a promise from the offeree to
form a binding contract. Promise for promise
Unilateral Contract - Correct Answer offeror wants the offeree to do something, most
common is a reward
Express Contract - Correct Answer Are all clearly set forth in either written or spoken
words
Implied Contract - Correct Answer Arise from the conduct of the parties. Needs 3
conditions:
-Plaintiff provided some property or service to the defendant
-Plaintiff expected to be paid for such property or service
-Defendant had an opportunity to reject the property or service but did not
, Formal Contracts - Correct Answer have a special form or must be created in a specific
manner. 4 types:
-Contracts under seal
-Recognizances
-Letters of Credit
-Negotiable Instruments
Informal (Simple) Contract - Correct Answer no formalities are required in making,
Plain-Meaning Rule - Correct Answer States that if a writing, or a term in question
appears to be plain and unambiguous on its face, we determine its meaning from
exactly what is stated
Elements of the Offer: - Correct Answer -Intent
-Definite and Certain Terms
-Communication to the Offeree
Termination of the Offer (5 ways) - Correct Answer -Revocation by the offeror
-Rejection or counteroffer by the offeree
-Death or incapacity of the offeror
-Destruction of subsequent illegality of the subject matter of the offer
-Lapse of time or failure of other conditions stated
Revocation Exceptions - Correct Answer -Option Contract: in exchange for a piece of
consideration, the offeror will hold the offer open for a period of time (real estate)
-Detrimental Reliance: If the offeree had reasonably relied on the promise to hold the
offer open and took action in reliance on that
The Acceptance - Correct Answer Requirements match the offer requirements
