LGS 200- ABIGAIL HAMMOND- EXAM 2 QUESTIONS AND
ANSWERS UPDATED 2024/2025 A COMPLETE SOLUTION
CONTAINS 100% CORRECT DETAILED ANSWERS BEST
GRADED A+ FOR PASS
Contract - CORRECT ANSWERS An agreement that can be enforced in court; formed
by two parties, each of whom agrees to perform or to refrain from performing some act now or
in the future.
What are the two parties involved in every contract? - CORRECT ANSWERS 1. Offeror -
A person who makes an offer.
2. Offeree - A person to whom an offer is made.
When is intent important? - CORRECT ANSWERS In determining whether a contract
has been formed. The intent is determined by the objective theory of contracts.
Objective theory of contracts - CORRECT ANSWERS A theory under which the intent to
form a contract will be judged by outward, objective facts (what the party said when entering
into the contract, how the party acted or appeared, and the circumstances surrounding the
transaction) as interpreted by a reasonable person, rather than by the party's own secret,
subjective intentions.
Objective facts might include: 1. What a party said when entering into the contract 2. How a
party acted or appeared 3. The circumstances surrounding the transaction
What are the four requirements that must be met before a valid contract exists? - CORRECT
ANSWERS 1. Agreement • an offer by one party to enter into the agreement and an
acceptance of the terms of the offer by another party. 2. Consideration • Any promises made
by the parties to the contract must be supported by legally sufficient and bargained-for
consideration (something of value received or promised, such as money, to convince a person
to make a deal). 3. Contractual capacity • Both parties entering into the contract must have the
contractual capacity. That is, the law must recognize them as possessing characteristics that
qualify them as competent parties. 4. Legality • The contract's purpose must be to accomplish
some goal that is legal and not against public policy.
,LGS 200- ABIGAIL HAMMOND- EXAM 2 QUESTIONS AND
ANSWERS UPDATED 2024/2025 A COMPLETE SOLUTION
CONTAINS 100% CORRECT DETAILED ANSWERS BEST
GRADED A+ FOR PASS
What are the requirements typically raised as defenses to the enforceability of an otherwise
valid contract? - CORRECT ANSWERS 1. Voluntary consent • The consent of both
parties must be voluntary
2. Form • The contract must be in whatever form the law requires.
(Slide 5 for examples)
Types of contracts: Formation - CORRECT ANSWERS 1. Bilateral—A promise for a
promise.
2. Unilateral—A promise for an act—that is, acceptance is the completed performance of the
act.
3. Formal—Requires a special form for creation.
4. Informal—Requires no special form for creation.
5. Express—Formed by words, such as oral, written, or a combination.
6. Implied—Formed by the conduct of the parties.
Types of contracts: Performance - CORRECT ANSWERS 1. Executed—A fully performed
contract.
2. Executory—A contract not fully performed.
Types of contracts: enforceability - CORRECT ANSWERS 1. Valid—The contract has the
necessary contractual elements: agreement (offer and acceptance), consideration, legal
capacity of the parties, and legal purpose.
2. Unenforceable—A contract exists, but it cannot be enforced because of a legal defense.
3. Voidable—One party has the option of avoiding or enforcing the contractual obligation.
4. Void—No contract exists, or there is a contract without legal obligations.
,LGS 200- ABIGAIL HAMMOND- EXAM 2 QUESTIONS AND
ANSWERS UPDATED 2024/2025 A COMPLETE SOLUTION
CONTAINS 100% CORRECT DETAILED ANSWERS BEST
GRADED A+ FOR PASS
Agreement Definition - CORRECT ANSWERS A meeting of two or more minds in regard
to the terms of a contract.
Agreement events - CORRECT ANSWERS 1. An offer by one party to form a contract
(offeror)
2. An acceptance of the offer by the person to whom the offer is made (offeree)
Agreement decisions - CORRECT ANSWERS 1. Both parties must manifest to each
other their mutual agreement to the same bargain.
2. Once an agreement is reached, if the other elements of a contract (consideration, capacity,
and legality) are present, a valid contract is formed.
Offer - CORRECT ANSWERS A promise or commitment to perform or refrain from
performing some specified act in the future.
What are the three elements that are necessary for an offer to be effective? - CORRECT
ANSWERS 1. The offeror must have a serious intention to become bound by the offer.
2. The terms of the offer must be reasonably certain, or definite, so that the parties and the
court can make sure the terms of the contract.
3. The offer must be communicated to the offeree.
What are the ways an offer can be terminated? - CORRECT ANSWERS • Termination
by Action of the Offeror
• Termination by Action of the Offeree
• Termination by Operation of Law
, LGS 200- ABIGAIL HAMMOND- EXAM 2 QUESTIONS AND
ANSWERS UPDATED 2024/2025 A COMPLETE SOLUTION
CONTAINS 100% CORRECT DETAILED ANSWERS BEST
GRADED A+ FOR PASS
Termination by Action of the Offeror - CORRECT ANSWERS Some offers can be made
irreversible, such as option contracts
Option contract - CORRECT ANSWERS A contract under which the offeror cannot
revoke his or her offer for a stipulated time period and the offeree can accept or reject the offer
at any time during this period.
Termination by Action of the Offeree - CORRECT ANSWERS •Revocation (offeror)
•Rejection (offeree)
•Counteroffer (offeree)
Termination by Operation of Law - CORRECT ANSWERS 1. Lapse of time
2. Destruction of the subject matter
3. Death or incompetence of the offeror or offeree
4. Supervening illegality (the offer becomes illegal)
Acceptance - CORRECT ANSWERS The offeree's notification to the offeror that the
offeree agrees to be bound by the terms of the offeror's proposal
Unequivocal Acceptance - CORRECT ANSWERS To exercise the power of acceptance
effectively, the offeree must accept unequivocally (no doubt)
Unequivocal Acceptance Rules/ Exceptions - CORRECT ANSWERS 1. An acceptance
may be unequivocal even though the offeree expresses dissatisfaction with the contract.
Example: "I accept the offer, but can you give me a better price?"
ANSWERS UPDATED 2024/2025 A COMPLETE SOLUTION
CONTAINS 100% CORRECT DETAILED ANSWERS BEST
GRADED A+ FOR PASS
Contract - CORRECT ANSWERS An agreement that can be enforced in court; formed
by two parties, each of whom agrees to perform or to refrain from performing some act now or
in the future.
What are the two parties involved in every contract? - CORRECT ANSWERS 1. Offeror -
A person who makes an offer.
2. Offeree - A person to whom an offer is made.
When is intent important? - CORRECT ANSWERS In determining whether a contract
has been formed. The intent is determined by the objective theory of contracts.
Objective theory of contracts - CORRECT ANSWERS A theory under which the intent to
form a contract will be judged by outward, objective facts (what the party said when entering
into the contract, how the party acted or appeared, and the circumstances surrounding the
transaction) as interpreted by a reasonable person, rather than by the party's own secret,
subjective intentions.
Objective facts might include: 1. What a party said when entering into the contract 2. How a
party acted or appeared 3. The circumstances surrounding the transaction
What are the four requirements that must be met before a valid contract exists? - CORRECT
ANSWERS 1. Agreement • an offer by one party to enter into the agreement and an
acceptance of the terms of the offer by another party. 2. Consideration • Any promises made
by the parties to the contract must be supported by legally sufficient and bargained-for
consideration (something of value received or promised, such as money, to convince a person
to make a deal). 3. Contractual capacity • Both parties entering into the contract must have the
contractual capacity. That is, the law must recognize them as possessing characteristics that
qualify them as competent parties. 4. Legality • The contract's purpose must be to accomplish
some goal that is legal and not against public policy.
,LGS 200- ABIGAIL HAMMOND- EXAM 2 QUESTIONS AND
ANSWERS UPDATED 2024/2025 A COMPLETE SOLUTION
CONTAINS 100% CORRECT DETAILED ANSWERS BEST
GRADED A+ FOR PASS
What are the requirements typically raised as defenses to the enforceability of an otherwise
valid contract? - CORRECT ANSWERS 1. Voluntary consent • The consent of both
parties must be voluntary
2. Form • The contract must be in whatever form the law requires.
(Slide 5 for examples)
Types of contracts: Formation - CORRECT ANSWERS 1. Bilateral—A promise for a
promise.
2. Unilateral—A promise for an act—that is, acceptance is the completed performance of the
act.
3. Formal—Requires a special form for creation.
4. Informal—Requires no special form for creation.
5. Express—Formed by words, such as oral, written, or a combination.
6. Implied—Formed by the conduct of the parties.
Types of contracts: Performance - CORRECT ANSWERS 1. Executed—A fully performed
contract.
2. Executory—A contract not fully performed.
Types of contracts: enforceability - CORRECT ANSWERS 1. Valid—The contract has the
necessary contractual elements: agreement (offer and acceptance), consideration, legal
capacity of the parties, and legal purpose.
2. Unenforceable—A contract exists, but it cannot be enforced because of a legal defense.
3. Voidable—One party has the option of avoiding or enforcing the contractual obligation.
4. Void—No contract exists, or there is a contract without legal obligations.
,LGS 200- ABIGAIL HAMMOND- EXAM 2 QUESTIONS AND
ANSWERS UPDATED 2024/2025 A COMPLETE SOLUTION
CONTAINS 100% CORRECT DETAILED ANSWERS BEST
GRADED A+ FOR PASS
Agreement Definition - CORRECT ANSWERS A meeting of two or more minds in regard
to the terms of a contract.
Agreement events - CORRECT ANSWERS 1. An offer by one party to form a contract
(offeror)
2. An acceptance of the offer by the person to whom the offer is made (offeree)
Agreement decisions - CORRECT ANSWERS 1. Both parties must manifest to each
other their mutual agreement to the same bargain.
2. Once an agreement is reached, if the other elements of a contract (consideration, capacity,
and legality) are present, a valid contract is formed.
Offer - CORRECT ANSWERS A promise or commitment to perform or refrain from
performing some specified act in the future.
What are the three elements that are necessary for an offer to be effective? - CORRECT
ANSWERS 1. The offeror must have a serious intention to become bound by the offer.
2. The terms of the offer must be reasonably certain, or definite, so that the parties and the
court can make sure the terms of the contract.
3. The offer must be communicated to the offeree.
What are the ways an offer can be terminated? - CORRECT ANSWERS • Termination
by Action of the Offeror
• Termination by Action of the Offeree
• Termination by Operation of Law
, LGS 200- ABIGAIL HAMMOND- EXAM 2 QUESTIONS AND
ANSWERS UPDATED 2024/2025 A COMPLETE SOLUTION
CONTAINS 100% CORRECT DETAILED ANSWERS BEST
GRADED A+ FOR PASS
Termination by Action of the Offeror - CORRECT ANSWERS Some offers can be made
irreversible, such as option contracts
Option contract - CORRECT ANSWERS A contract under which the offeror cannot
revoke his or her offer for a stipulated time period and the offeree can accept or reject the offer
at any time during this period.
Termination by Action of the Offeree - CORRECT ANSWERS •Revocation (offeror)
•Rejection (offeree)
•Counteroffer (offeree)
Termination by Operation of Law - CORRECT ANSWERS 1. Lapse of time
2. Destruction of the subject matter
3. Death or incompetence of the offeror or offeree
4. Supervening illegality (the offer becomes illegal)
Acceptance - CORRECT ANSWERS The offeree's notification to the offeror that the
offeree agrees to be bound by the terms of the offeror's proposal
Unequivocal Acceptance - CORRECT ANSWERS To exercise the power of acceptance
effectively, the offeree must accept unequivocally (no doubt)
Unequivocal Acceptance Rules/ Exceptions - CORRECT ANSWERS 1. An acceptance
may be unequivocal even though the offeree expresses dissatisfaction with the contract.
Example: "I accept the offer, but can you give me a better price?"
