Contract Law Exam ACTUAL QUESTIONS
AND CORRECT ANSWERS
Contracts - Correct answers✔✔A promise(s) recognized by law with remedies for breach
Formation - Correct answers✔✔Process of creating a contract, including express and implied
methods
oral - Correct answers✔✔what type of express formation is their word against yours?
implied formation - Correct answers✔✔not written but implied agreement in a contract
formation
oral or written - Correct answers✔✔express formation can be __or ___?
law-quasi-contract - Correct answers✔✔Court created contract
Parties themselves did not create contract, rather by the courts
Sources of Contract Law - Correct answers✔✔Common law and Uniform Commercial Code
(UCC) Article 2
common law - Correct answers✔✔type of contract law that Applies to all contracts
Article two of the uniform commercial code (UCC) contracts for the sale of goods - Correct
answers✔✔Applies for certain types of contracts
Backbone of business law
Only deals w personal property, not real property
broken into articles (were focusing on article 2)
Written to protect merchants
If you're selling tangible personal property by contract is who is protected by the UCC
The transactions no matter where u are nationally, the sale of goods will be treated the same
Valid Contract - Correct answers✔✔Contains all essential elements: offer, acceptance, legal
capacity, subject matter, consideration
valid/void/voidable - Correct answers✔✔what are the classifications of contracts?
, valid contract - Correct answers✔✔type of contract where All 5 elements present in contract
Offer
Acceptance
legal capacity of contracting parties
legal subject matter
Consideration - Correct answers✔✔what are the 5 elements present in contract
Void Contract - Correct answers✔✔Lacks one or more essential elements, rendering it non-
existent
Voidable Contract - Correct answers✔✔Can be voided at the option of one party, such as
contracts with minors
Unilateral Contract - Correct answers✔✔One party makes a promise in exchange for
performance, not a promise
bilateral contract - Correct answers✔✔what kinda contract had regulations to ensure that both
parties perform their commitments agreed upon in contract, there is an executed and executory
contract to ensure those performances
Bilateral Contract - Correct answers✔✔Both parties exchange mutual promises
Executed Contract - Correct answers✔✔Fully performed contract with no outstanding
obligations
Executory Contract - Correct answers✔✔Parties have not fulfilled their obligations
Offer - Correct answers✔✔Communication initiating a contract, must be definite and specific
offeror - Correct answers✔✔who's the person making the offer & intends to make the offer by
making a commitment to the other party?
offer - Correct answers✔✔whos the person to whom the offer is made
revocation, rejection, counteroffer, and lapse of time - Correct answers✔✔what are the diff
reasonings for an offer to be terminated due to an explicit act of one of the parties?
revocation - Correct answers✔✔when offeror retracts the offer before acceptance
rejection - Correct answers✔✔The refusal of an offer. A rejection terminates an offer.
AND CORRECT ANSWERS
Contracts - Correct answers✔✔A promise(s) recognized by law with remedies for breach
Formation - Correct answers✔✔Process of creating a contract, including express and implied
methods
oral - Correct answers✔✔what type of express formation is their word against yours?
implied formation - Correct answers✔✔not written but implied agreement in a contract
formation
oral or written - Correct answers✔✔express formation can be __or ___?
law-quasi-contract - Correct answers✔✔Court created contract
Parties themselves did not create contract, rather by the courts
Sources of Contract Law - Correct answers✔✔Common law and Uniform Commercial Code
(UCC) Article 2
common law - Correct answers✔✔type of contract law that Applies to all contracts
Article two of the uniform commercial code (UCC) contracts for the sale of goods - Correct
answers✔✔Applies for certain types of contracts
Backbone of business law
Only deals w personal property, not real property
broken into articles (were focusing on article 2)
Written to protect merchants
If you're selling tangible personal property by contract is who is protected by the UCC
The transactions no matter where u are nationally, the sale of goods will be treated the same
Valid Contract - Correct answers✔✔Contains all essential elements: offer, acceptance, legal
capacity, subject matter, consideration
valid/void/voidable - Correct answers✔✔what are the classifications of contracts?
, valid contract - Correct answers✔✔type of contract where All 5 elements present in contract
Offer
Acceptance
legal capacity of contracting parties
legal subject matter
Consideration - Correct answers✔✔what are the 5 elements present in contract
Void Contract - Correct answers✔✔Lacks one or more essential elements, rendering it non-
existent
Voidable Contract - Correct answers✔✔Can be voided at the option of one party, such as
contracts with minors
Unilateral Contract - Correct answers✔✔One party makes a promise in exchange for
performance, not a promise
bilateral contract - Correct answers✔✔what kinda contract had regulations to ensure that both
parties perform their commitments agreed upon in contract, there is an executed and executory
contract to ensure those performances
Bilateral Contract - Correct answers✔✔Both parties exchange mutual promises
Executed Contract - Correct answers✔✔Fully performed contract with no outstanding
obligations
Executory Contract - Correct answers✔✔Parties have not fulfilled their obligations
Offer - Correct answers✔✔Communication initiating a contract, must be definite and specific
offeror - Correct answers✔✔who's the person making the offer & intends to make the offer by
making a commitment to the other party?
offer - Correct answers✔✔whos the person to whom the offer is made
revocation, rejection, counteroffer, and lapse of time - Correct answers✔✔what are the diff
reasonings for an offer to be terminated due to an explicit act of one of the parties?
revocation - Correct answers✔✔when offeror retracts the offer before acceptance
rejection - Correct answers✔✔The refusal of an offer. A rejection terminates an offer.
