L201 Exam 2 Study Guide Exam and
All Actual Answers 2025-2026
Updated.
valid contract - Answer a set of promises that the law will enforce, containing agreement,
consideration, legality, capacity
bilateral contract - Answer a type of contract, two (both) parties make promises and the
contract is formed at the time the promises are exchanged
unilateral contract - Answer a type of contract, a promise by one party in exchange for
performance by the other party (not merely a promise to perform, which would create a
bilateral contract)
unenforceable contract - Answer a type of contract meets all of the legal requirements
(elements) for a binding contract, but some other fact prevents a court from enforcing
(requirement of written evidence in some circumstances, or statute of limitations)
voidable contract - Answer a type of contract that meets all legal requirements, but some
other fact exists that allows one party to cancel because of either lack of genuine consent or
lack of capacity
lack of capacity - Answer fact that allows a party to cancel a contract becuase this is
considered voidable-minors and mentally incompetent individuals are generally said to lack
capacity to contract
void contract - Answer type of contract (agreement) that is generally not really a contract at all
because it lacks legality
express contract - Answer A contract in which the parties have directly stated the terms of
their contract orally or in writing at the time the contract was formed.
implied contract - Answer A contract in which the terms have not been expressed, but the
existence of a contract and the parties intent to be bound can be determined by the
surrounding facts and circumstances, including ordinary or customary course of dealings.
, executory contracts - Answer a type of contract where one or more parties has not yet fully
performed.
common law - Answer Governs contracts for services, and contracts for goods where there is
no applicable UCC rule, governs a wide variety of contracts, including contracts pertaining to
real estate, intangible property, services and employment
article 2 of the UCC - Answer governs the sale of goods (tangible personal property), proposed
uniform legislation adopted as state statutes
"hybrid contract" - Answer a contract for goods and services, examine the "predominant
purpose" of the transaction. If the predominant purpose is a sale of goods, the UCC will govern.
If not, the common law will govern
quasi contract - Answer One party confers a benefit on another; and
The other party knowingly accepts the benefit; and
It would be unjust to allow the party to keep the benefit without paying the reasonable market
value for it
promissory estoppel - Answer The legal principle that a promise is enforceable by law when
the promisor (person making the promise) makes a promise to the promisee (person being
promised) who relies on it to his or her detriment.
agreement - Answer the first element that courts will look for in determining whether a
contract exists between the parties, must be mutual
offer - Answer Words or conduct communicated by one person (the offeror) to another (the
offeree), that when viewed objectively, propose definite terms and indicate a present intent to
contract, giving the offeree the power to create a contract by accepting.
objective theory of contract - Answer An alleged offeror's "intent to contract" is generally
determined by the way that party's words and acts, under the circumstances, would have
appeared to an outside observer (i.e., how they appear objectively), not what was actually in
the mind (subjectively) of that party
definiteness (specificity) of terms - Answer To be an offer, a proposal must be adequately
All Actual Answers 2025-2026
Updated.
valid contract - Answer a set of promises that the law will enforce, containing agreement,
consideration, legality, capacity
bilateral contract - Answer a type of contract, two (both) parties make promises and the
contract is formed at the time the promises are exchanged
unilateral contract - Answer a type of contract, a promise by one party in exchange for
performance by the other party (not merely a promise to perform, which would create a
bilateral contract)
unenforceable contract - Answer a type of contract meets all of the legal requirements
(elements) for a binding contract, but some other fact prevents a court from enforcing
(requirement of written evidence in some circumstances, or statute of limitations)
voidable contract - Answer a type of contract that meets all legal requirements, but some
other fact exists that allows one party to cancel because of either lack of genuine consent or
lack of capacity
lack of capacity - Answer fact that allows a party to cancel a contract becuase this is
considered voidable-minors and mentally incompetent individuals are generally said to lack
capacity to contract
void contract - Answer type of contract (agreement) that is generally not really a contract at all
because it lacks legality
express contract - Answer A contract in which the parties have directly stated the terms of
their contract orally or in writing at the time the contract was formed.
implied contract - Answer A contract in which the terms have not been expressed, but the
existence of a contract and the parties intent to be bound can be determined by the
surrounding facts and circumstances, including ordinary or customary course of dealings.
, executory contracts - Answer a type of contract where one or more parties has not yet fully
performed.
common law - Answer Governs contracts for services, and contracts for goods where there is
no applicable UCC rule, governs a wide variety of contracts, including contracts pertaining to
real estate, intangible property, services and employment
article 2 of the UCC - Answer governs the sale of goods (tangible personal property), proposed
uniform legislation adopted as state statutes
"hybrid contract" - Answer a contract for goods and services, examine the "predominant
purpose" of the transaction. If the predominant purpose is a sale of goods, the UCC will govern.
If not, the common law will govern
quasi contract - Answer One party confers a benefit on another; and
The other party knowingly accepts the benefit; and
It would be unjust to allow the party to keep the benefit without paying the reasonable market
value for it
promissory estoppel - Answer The legal principle that a promise is enforceable by law when
the promisor (person making the promise) makes a promise to the promisee (person being
promised) who relies on it to his or her detriment.
agreement - Answer the first element that courts will look for in determining whether a
contract exists between the parties, must be mutual
offer - Answer Words or conduct communicated by one person (the offeror) to another (the
offeree), that when viewed objectively, propose definite terms and indicate a present intent to
contract, giving the offeree the power to create a contract by accepting.
objective theory of contract - Answer An alleged offeror's "intent to contract" is generally
determined by the way that party's words and acts, under the circumstances, would have
appeared to an outside observer (i.e., how they appear objectively), not what was actually in
the mind (subjectively) of that party
definiteness (specificity) of terms - Answer To be an offer, a proposal must be adequately
