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 - CORRECT ANSWER-refers to soley state of mind and thought process -->
not legally accepted by the court; generally irrelavant
manifestation of offeror's intent to be bound - CORRECT ANSWER-- intent determined
by objective, reasonable person standard
- preliminary negotiations and advertisements do not constitute offers
define and certain terms - CORRECT ANSWER-a contract must include and clearly
define all material terms
agreement (acceptance): what does an acceptance have to include - CORRECT
ANSWER-is valid when a manifestation of intent to be bound to the terms of the offer is
communicated to the offeror by the offeree
agreement (acceptance): what is the mirror image rule (when is there a counter offer) -
CORRECT ANSWER-A principle which holds that the terms of an acceptance must
mirror the terms of the offer. If the terms of the acceptance do not mirror the terms of
the offer, no contract is formed and the attempted acceptance is a counteroffer
agreement (acceptance): what is the mailbox rule - CORRECT ANSWER-acceptance
by mail (or email) effective when placed i mailbox; however revocation of offer effective
only when received by offeree
what does the phrase meeting of the minds refer to - CORRECT ANSWER-refers to a
common understanding between parties regarding the limitations and intentions of an
agreed upon contract
consideration: what is consideration - CORRECT ANSWER-1. something of value
2. given in exchange for something else of value
3. the product of a mutually bargained- for exchange
consideration: what are the two exceptions to the requirement of consideration -
CORRECT ANSWER-- partial payment of debt
- promissory estoppel
partial payment of a debt - CORRECT ANSWER-- liquidated debt
- unliquidated debt
liquidated debt - CORRECT ANSWER-no dispute as to amount of money owed
unliquidated debt - CORRECT ANSWER-parties in good fath either dispute the fact that
money is owed or dispute the amount
[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 - CORRECT ANSWER-refers to soley state of mind and thought process -->
not legally accepted by the court; generally irrelavant
manifestation of offeror's intent to be bound - CORRECT ANSWER-- intent determined
by objective, reasonable person standard
- preliminary negotiations and advertisements do not constitute offers
define and certain terms - CORRECT ANSWER-a contract must include and clearly
define all material terms
agreement (acceptance): what does an acceptance have to include - CORRECT
ANSWER-is valid when a manifestation of intent to be bound to the terms of the offer is
communicated to the offeror by the offeree
agreement (acceptance): what is the mirror image rule (when is there a counter offer) -
CORRECT ANSWER-A principle which holds that the terms of an acceptance must
mirror the terms of the offer. If the terms of the acceptance do not mirror the terms of
the offer, no contract is formed and the attempted acceptance is a counteroffer
agreement (acceptance): what is the mailbox rule - CORRECT ANSWER-acceptance
by mail (or email) effective when placed i mailbox; however revocation of offer effective
only when received by offeree
what does the phrase meeting of the minds refer to - CORRECT ANSWER-refers to a
common understanding between parties regarding the limitations and intentions of an
agreed upon contract
consideration: what is consideration - CORRECT ANSWER-1. something of value
2. given in exchange for something else of value
3. the product of a mutually bargained- for exchange
consideration: what are the two exceptions to the requirement of consideration -
CORRECT ANSWER-- partial payment of debt
- promissory estoppel
partial payment of a debt - CORRECT ANSWER-- liquidated debt
- unliquidated debt
liquidated debt - CORRECT ANSWER-no dispute as to amount of money owed
unliquidated debt - CORRECT ANSWER-parties in good fath either dispute the fact that
money is owed or dispute the amount
