BLS 342 final exam REVIWED ANSWERS
[QUESTIONS AND CORRECT ANSWERS
100% PASS]
classifications of contracts - CORRECT ANSWER-- bilateral vs unilateral
- express vs implied
- quasi contract
bilateral - CORRECT ANSWER-- a promise + a promise
- as soon as the promises are exchanged a contact is formed and the parties legal
obligations arise
unilateral - CORRECT ANSWER-a promise + a requested action
- the offeror wants the offeree to do something, or to promise to do something
express - CORRECT ANSWER-a contract in which all terms are clearly set forth in
either written or spoken words
implied - CORRECT ANSWER-a contract arises not from words of agreement but from
the conduct of the parties
quasi contract - CORRECT ANSWER-- sometimes called implied in law contracts, but
they are not actually contracts
- in order to present one party from being unjustly enriched at the expense of another
the courts impose contractual obligations on one of the parties as if that party has
entered into a contract
substantial performance - CORRECT ANSWER-occurs when the following conditions
have been met
1. completion of nearly all the terms of the agreement
2. an honest effort to complete all terms
3. no willful departure from the terms of the agreement
perfect tender rule - CORRECT ANSWER-the requirement that a seller deliver goods in
conformity with the contract, down to the last detail
,what does commercial impracticability refer to - CORRECT ANSWER-- Can be seen as
a response to what some might interpret as a somewhat unfair harshness of the
objective-impossibility standard
- Is used when performance is still objectively possible but would be extraordinarily
injurious or expensive to one party
- Arises when, because of an unforeseeable event, one party would incur unreasonable
expense, injury, or loss if that party were forced to carry out the terms of the agreement
remedies for a breach of contract - CORRECT ANSWER-- liquidated damages
- specific performance
- consequential damages (duty to mitigate)
- right to cure
liquidated damages - CORRECT ANSWER-damages identified before the breach
occurs. damages specified as a term of the contract
specific performance - CORRECT ANSWER-- An order of the court requiring that a
nonbreaching party fulfil the terms of the contract
- Usually requires that the seller or lessor deliver the particular goods identified in the
contract
consequential damages (duty mitigate) - CORRECT ANSWER-- Foreseeable damages
that result from special facts and circumstances arising outside the contract itself
- These damages must be within the contemplation of the parties at the time the breach
occurs
right to cure - CORRECT ANSWER-Under CISG, breaching party has the right to cure
so long as the cure is done within a "reasonable" time
what are four elements of a valid contract - CORRECT ANSWER-1. agreement (offer
and acceptance)
2. consideration (value given by both parties)
3. contractual capacity (legal ability to enter into a binding agreement)
4. legal object ( contract cannot be illegal or against public policy)
agreement (offer) : what are three elements of a valid offer - CORRECT ANSWER-1.
manifestation of offeror's intent to be bound
2. define and certain terms (all material terms included)
3. communication of offer to offeree (or offeree's agent)
what standard does the court use to interpret the intent of the parties - CORRECT
ANSWER-- objective
- subjective
objective - CORRECT ANSWER-intent by outward manifestation based on how a
reasonable person would interpret it --> by performance or by return promise
, subjective b- bCORRECT bANSWER-refers bto bsoley bstate bof bmind band bthought bprocess b--
> bnot blegally baccepted bby bthe bcourt; bgenerally birrelavant
manifestation bof bofferor's bintent bto bbe bbound b- bCORRECT bANSWER-- bintent
bdetermined bby bobjective, breasonable bperson bstandard
- bpreliminary bnegotiations band badvertisements bdo bnot bconstitute boffers
define band bcertain bterms b- bCORRECT bANSWER-a bcontract bmust binclude band bclearly
bdefine ball bmaterial bterms
agreement b(acceptance): bwhat bdoes ban bacceptance bhave bto binclude b- bCORRECT
bANSWER-is bvalid bwhen ba bmanifestation bof bintent bto bbe bbound bto bthe bterms bof bthe boffer
bis bcommunicated bto bthe bofferor bby bthe bofferee
agreement b(acceptance): bwhat bis bthe bmirror bimage brule b(when bis bthere ba bcounter boffer)
b- bCORRECT bANSWER-A bprinciple bwhich bholds bthat bthe bterms bof ban bacceptance bmust
bmirror bthe bterms bof bthe boffer. bIf bthe bterms bof bthe bacceptance bdo bnot bmirror bthe bterms bof
bthe boffer, bno bcontract bis bformed band bthe battempted bacceptance bis ba bcounteroffer
agreement b(acceptance): bwhat bis bthe bmailbox brule b- bCORRECT bANSWER-acceptance
bby bmail b(or bemail) beffective bwhen bplaced bi bmailbox; bhowever brevocation bof boffer
beffective bonly bwhen breceived bby bofferee
what bdoes bthe bphrase bmeeting bof bthe bminds brefer bto b- bCORRECT bANSWER-refers bto ba
bcommon bunderstanding bbetween bparties bregarding bthe blimitations band bintentions bof ban
bagreed bupon bcontract
consideration: bwhat bis bconsideration b- bCORRECT bANSWER-1. bsomething bof bvalue
2. bgiven bin bexchange bfor bsomething belse bof bvalue
3. bthe bproduct bof ba bmutually bbargained- bfor bexchange
consideration: bwhat bare bthe btwo bexceptions bto bthe brequirement bof bconsideration b-
bCORRECT bANSWER-- bpartial bpayment bof bdebt
- bpromissory bestoppel
partial bpayment bof ba bdebt b- bCORRECT bANSWER-- bliquidated bdebt
- bunliquidated bdebt
liquidated bdebt b- bCORRECT bANSWER-no bdispute bas bto bamount bof bmoney bowed
unliquidated bdebt b- bCORRECT bANSWER-parties bin bgood bfath beither bdispute bthe bfact
bthat bmoney bis bowed bor bdispute bthe bamount
[QUESTIONS AND CORRECT ANSWERS
100% PASS]
classifications of contracts - CORRECT ANSWER-- bilateral vs unilateral
- express vs implied
- quasi contract
bilateral - CORRECT ANSWER-- a promise + a promise
- as soon as the promises are exchanged a contact is formed and the parties legal
obligations arise
unilateral - CORRECT ANSWER-a promise + a requested action
- the offeror wants the offeree to do something, or to promise to do something
express - CORRECT ANSWER-a contract in which all terms are clearly set forth in
either written or spoken words
implied - CORRECT ANSWER-a contract arises not from words of agreement but from
the conduct of the parties
quasi contract - CORRECT ANSWER-- sometimes called implied in law contracts, but
they are not actually contracts
- in order to present one party from being unjustly enriched at the expense of another
the courts impose contractual obligations on one of the parties as if that party has
entered into a contract
substantial performance - CORRECT ANSWER-occurs when the following conditions
have been met
1. completion of nearly all the terms of the agreement
2. an honest effort to complete all terms
3. no willful departure from the terms of the agreement
perfect tender rule - CORRECT ANSWER-the requirement that a seller deliver goods in
conformity with the contract, down to the last detail
,what does commercial impracticability refer to - CORRECT ANSWER-- Can be seen as
a response to what some might interpret as a somewhat unfair harshness of the
objective-impossibility standard
- Is used when performance is still objectively possible but would be extraordinarily
injurious or expensive to one party
- Arises when, because of an unforeseeable event, one party would incur unreasonable
expense, injury, or loss if that party were forced to carry out the terms of the agreement
remedies for a breach of contract - CORRECT ANSWER-- liquidated damages
- specific performance
- consequential damages (duty to mitigate)
- right to cure
liquidated damages - CORRECT ANSWER-damages identified before the breach
occurs. damages specified as a term of the contract
specific performance - CORRECT ANSWER-- An order of the court requiring that a
nonbreaching party fulfil the terms of the contract
- Usually requires that the seller or lessor deliver the particular goods identified in the
contract
consequential damages (duty mitigate) - CORRECT ANSWER-- Foreseeable damages
that result from special facts and circumstances arising outside the contract itself
- These damages must be within the contemplation of the parties at the time the breach
occurs
right to cure - CORRECT ANSWER-Under CISG, breaching party has the right to cure
so long as the cure is done within a "reasonable" time
what are four elements of a valid contract - CORRECT ANSWER-1. agreement (offer
and acceptance)
2. consideration (value given by both parties)
3. contractual capacity (legal ability to enter into a binding agreement)
4. legal object ( contract cannot be illegal or against public policy)
agreement (offer) : what are three elements of a valid offer - CORRECT ANSWER-1.
manifestation of offeror's intent to be bound
2. define and certain terms (all material terms included)
3. communication of offer to offeree (or offeree's agent)
what standard does the court use to interpret the intent of the parties - CORRECT
ANSWER-- objective
- subjective
objective - CORRECT ANSWER-intent by outward manifestation based on how a
reasonable person would interpret it --> by performance or by return promise
, subjective b- bCORRECT bANSWER-refers bto bsoley bstate bof bmind band bthought bprocess b--
> bnot blegally baccepted bby bthe bcourt; bgenerally birrelavant
manifestation bof bofferor's bintent bto bbe bbound b- bCORRECT bANSWER-- bintent
bdetermined bby bobjective, breasonable bperson bstandard
- bpreliminary bnegotiations band badvertisements bdo bnot bconstitute boffers
define band bcertain bterms b- bCORRECT bANSWER-a bcontract bmust binclude band bclearly
bdefine ball bmaterial bterms
agreement b(acceptance): bwhat bdoes ban bacceptance bhave bto binclude b- bCORRECT
bANSWER-is bvalid bwhen ba bmanifestation bof bintent bto bbe bbound bto bthe bterms bof bthe boffer
bis bcommunicated bto bthe bofferor bby bthe bofferee
agreement b(acceptance): bwhat bis bthe bmirror bimage brule b(when bis bthere ba bcounter boffer)
b- bCORRECT bANSWER-A bprinciple bwhich bholds bthat bthe bterms bof ban bacceptance bmust
bmirror bthe bterms bof bthe boffer. bIf bthe bterms bof bthe bacceptance bdo bnot bmirror bthe bterms bof
bthe boffer, bno bcontract bis bformed band bthe battempted bacceptance bis ba bcounteroffer
agreement b(acceptance): bwhat bis bthe bmailbox brule b- bCORRECT bANSWER-acceptance
bby bmail b(or bemail) beffective bwhen bplaced bi bmailbox; bhowever brevocation bof boffer
beffective bonly bwhen breceived bby bofferee
what bdoes bthe bphrase bmeeting bof bthe bminds brefer bto b- bCORRECT bANSWER-refers bto ba
bcommon bunderstanding bbetween bparties bregarding bthe blimitations band bintentions bof ban
bagreed bupon bcontract
consideration: bwhat bis bconsideration b- bCORRECT bANSWER-1. bsomething bof bvalue
2. bgiven bin bexchange bfor bsomething belse bof bvalue
3. bthe bproduct bof ba bmutually bbargained- bfor bexchange
consideration: bwhat bare bthe btwo bexceptions bto bthe brequirement bof bconsideration b-
bCORRECT bANSWER-- bpartial bpayment bof bdebt
- bpromissory bestoppel
partial bpayment bof ba bdebt b- bCORRECT bANSWER-- bliquidated bdebt
- bunliquidated bdebt
liquidated bdebt b- bCORRECT bANSWER-no bdispute bas bto bamount bof bmoney bowed
unliquidated bdebt b- bCORRECT bANSWER-parties bin bgood bfath beither bdispute bthe bfact
bthat bmoney bis bowed bor bdispute bthe bamount
