Business Law Exam II USF Kerry
Myers Questions and Answers
Bilateral Contract - answer- - A contract by way of exchange of promises of the
parties "A promise for a promise"
- The offeror's promise is answered with the offeree's promise of acceptance
- The exchange of promises creates an enforceable contract
Unilateral Contract - answer- - the offeror's offer can be accepted only by the
performance of an act by the offeree, a "Promise for an act"
- There is no contract until the offeree performs the requested act.
Quasi Contract - answer- - A court may award monetary damages to a plaintiff for
providing work or services to a defendant even though no actual contract existed.
- Amount awarded is usually reasonable value for services received by defendant
Doesn't apply where there is an enforceable contract between the parties
Implied in fact contract - answer- A contract in which agreement between parties has
been inferred from their contract.
Executed Contract - answer- - A completed contract
- A contract that has been fully performed on both sides
Executory Contract - answer- - Incomplete Contract
- A contract that has not been fully performed by either or both sides.
Counter Offer - answer- - Response by offeree that contains terms and conditions
different than the offer.
- A counteroffer terminates the previous offer.
Rejection - answer- - Express words or conduct by the offeree to reject an offer.
- Rejection terminates the offer.
Communication of offer - answer- - An offer cannot be accepted if it is not
communicated to the offeree by the offeror if a representative or an agent of the
offeror.
Rewards - answer- - An award given for performance of some service or attainment
- To collect reward, offeree must:
1) Have knowledge of reward prior to completing act
2) perform the act
- An offer to form a unilateral contract
Intent to make an offer (elements for an offer to be effective) - answer- - Offeror must
objectively intend to be bound by the offer
- Terms of the offer must be definite or reasonably certain
- Offer must be communicated to the offeree
, Mirror Image Rule - answer- - For an acceptance to exist, the offeree must accept
the terms as stated in the offer.
- The offeree must accept the terms of the offer without modification
Rejection - answer- Express words or conduct by the offeree to reject an offer.
Terminates the offer. Not effective until actually received by offeree.
Revocation - answer- Withdrawal of an offer by the offeror that terminates the offer.
Not effective until actually received by offeree.
Acceptance - answer- A manifestation of assent by the offeree to the terms of the
offer in a manner invited or required by the offer as measured by the objective theory
of contracts.
Per-existing contractual duty - answer- - Something a person is already under
obligation to do.
- A promise lacks consideration fi a person promises to perform a preexisting duty
- Running into substantial unforeseen difficulties while performing duties, the party
may modify their contract to accommodate these unforeseen difficulties, the
modification will be enforced even though it is not supported by new consideration.
Special Business Contracts: Output Contract: - answer- A seller agrees to sell all of it
production to a single buyer.
Special Business Contracts: Requirements Contract: - answer- A buyer agrees to
purchase all of its requirements for an item from one seller.
Special Business Contracts: Best-Efforts Contract - answer- Contains a clause that
requires one or both of the parties to use their best efforts to achieve the objective of
the contract.
Promissory Estoppel: - answer- - Aka detrimental reliance
- An equity doctrine that permits a court to order enforcement of a contract that lacks
consideration.
- Applied to avoid injustice
- Prevents the promisor from revoking his or her promise based on lack of
consideration.
Gracious Promise - answer- - A promise that is unenforceable because it lacks
consideration
- For a gift promise to be enforceable, the promise must offer to do something in
exchange for the promise.
Consideration Forbearance - answer- Something of legal value that is given in
exchange for a promise
Forbearance of a legal right (accepting an out of court settlement in exchange for
dropping a lawsuit)
Myers Questions and Answers
Bilateral Contract - answer- - A contract by way of exchange of promises of the
parties "A promise for a promise"
- The offeror's promise is answered with the offeree's promise of acceptance
- The exchange of promises creates an enforceable contract
Unilateral Contract - answer- - the offeror's offer can be accepted only by the
performance of an act by the offeree, a "Promise for an act"
- There is no contract until the offeree performs the requested act.
Quasi Contract - answer- - A court may award monetary damages to a plaintiff for
providing work or services to a defendant even though no actual contract existed.
- Amount awarded is usually reasonable value for services received by defendant
Doesn't apply where there is an enforceable contract between the parties
Implied in fact contract - answer- A contract in which agreement between parties has
been inferred from their contract.
Executed Contract - answer- - A completed contract
- A contract that has been fully performed on both sides
Executory Contract - answer- - Incomplete Contract
- A contract that has not been fully performed by either or both sides.
Counter Offer - answer- - Response by offeree that contains terms and conditions
different than the offer.
- A counteroffer terminates the previous offer.
Rejection - answer- - Express words or conduct by the offeree to reject an offer.
- Rejection terminates the offer.
Communication of offer - answer- - An offer cannot be accepted if it is not
communicated to the offeree by the offeror if a representative or an agent of the
offeror.
Rewards - answer- - An award given for performance of some service or attainment
- To collect reward, offeree must:
1) Have knowledge of reward prior to completing act
2) perform the act
- An offer to form a unilateral contract
Intent to make an offer (elements for an offer to be effective) - answer- - Offeror must
objectively intend to be bound by the offer
- Terms of the offer must be definite or reasonably certain
- Offer must be communicated to the offeree
, Mirror Image Rule - answer- - For an acceptance to exist, the offeree must accept
the terms as stated in the offer.
- The offeree must accept the terms of the offer without modification
Rejection - answer- Express words or conduct by the offeree to reject an offer.
Terminates the offer. Not effective until actually received by offeree.
Revocation - answer- Withdrawal of an offer by the offeror that terminates the offer.
Not effective until actually received by offeree.
Acceptance - answer- A manifestation of assent by the offeree to the terms of the
offer in a manner invited or required by the offer as measured by the objective theory
of contracts.
Per-existing contractual duty - answer- - Something a person is already under
obligation to do.
- A promise lacks consideration fi a person promises to perform a preexisting duty
- Running into substantial unforeseen difficulties while performing duties, the party
may modify their contract to accommodate these unforeseen difficulties, the
modification will be enforced even though it is not supported by new consideration.
Special Business Contracts: Output Contract: - answer- A seller agrees to sell all of it
production to a single buyer.
Special Business Contracts: Requirements Contract: - answer- A buyer agrees to
purchase all of its requirements for an item from one seller.
Special Business Contracts: Best-Efforts Contract - answer- Contains a clause that
requires one or both of the parties to use their best efforts to achieve the objective of
the contract.
Promissory Estoppel: - answer- - Aka detrimental reliance
- An equity doctrine that permits a court to order enforcement of a contract that lacks
consideration.
- Applied to avoid injustice
- Prevents the promisor from revoking his or her promise based on lack of
consideration.
Gracious Promise - answer- - A promise that is unenforceable because it lacks
consideration
- For a gift promise to be enforceable, the promise must offer to do something in
exchange for the promise.
Consideration Forbearance - answer- Something of legal value that is given in
exchange for a promise
Forbearance of a legal right (accepting an out of court settlement in exchange for
dropping a lawsuit)
