L201 exam 3 Practice Test Questions
and All Correct Answers 2025-2026
Edition.
offeror - Answer party that makes the proposal (offer) to enter into a contract
offeree - Answer the party to whom the proposal (offer) is made
unilateral contract - Answer only one party makes a promise... a promise for an act
EX: loyalty punch cards. Offeror gives offeree free drink to anyone with X amount of punches.
*insurance*
bilateral K - Answer Both parties exchange promises. Contract formed as soon as promises are
exchanged
EX: Lease agreements. Bill agrees to pay landlord $700 a month if landlord agrees to let Bill live
in his house.
Valid - Answer contract has all the required elements, it is valid and enforceable by law
Unenforceable - Answer a contract that cannot be enforced by the law, could happen because
the terms of the contract are ambiguous.
express - Answer Parties have directly stated the terms of their contract either in writing or
orally at the time the contract was formed
implied - Answer actions create the contract
EX: trip to the doctor→ no agreement before→ You expect doctor to use reasonable care and
skill → Doctor expects you pay
void - Answer Contracts that create no legal obligations and for which no remedy will be given
, voidable - Answer One or more parties have the legal right to cancel their obligations under
the contract
EX: contracts induced by fraud or duress
see chapter 13 and 14 for more examples
executory - Answer Contracts are executory until all parties have fully performed their
contractual duties
executed - Answer Contracts are executed when both parties have performed all of their
contractual duties
UCC - Answer all states but LA
- uniform set of rules for commercial transactions
Elements of a contract - Answer offer
acceptance
consideration(to support each party's promise)
capacity
legal (objective and performance)
present intent to contract - Answer Actual intent to enter into the contract upon acceptance
by the offeror objective standard of intent
- words or acts indicate intent to enter into K upon acceptance, offeror not joking or haggling
if a reasonable person familiar with the circumstances would be justified in thinking the offeror
intended to contract, then the courts will hold that the intent requirement of an offer was
satisfied.
"was there a meeting of the minds?"
Definiteness - Answer specificity in contract tends to signify an INTENT to contract & so courts
know terms which parties agreed
and All Correct Answers 2025-2026
Edition.
offeror - Answer party that makes the proposal (offer) to enter into a contract
offeree - Answer the party to whom the proposal (offer) is made
unilateral contract - Answer only one party makes a promise... a promise for an act
EX: loyalty punch cards. Offeror gives offeree free drink to anyone with X amount of punches.
*insurance*
bilateral K - Answer Both parties exchange promises. Contract formed as soon as promises are
exchanged
EX: Lease agreements. Bill agrees to pay landlord $700 a month if landlord agrees to let Bill live
in his house.
Valid - Answer contract has all the required elements, it is valid and enforceable by law
Unenforceable - Answer a contract that cannot be enforced by the law, could happen because
the terms of the contract are ambiguous.
express - Answer Parties have directly stated the terms of their contract either in writing or
orally at the time the contract was formed
implied - Answer actions create the contract
EX: trip to the doctor→ no agreement before→ You expect doctor to use reasonable care and
skill → Doctor expects you pay
void - Answer Contracts that create no legal obligations and for which no remedy will be given
, voidable - Answer One or more parties have the legal right to cancel their obligations under
the contract
EX: contracts induced by fraud or duress
see chapter 13 and 14 for more examples
executory - Answer Contracts are executory until all parties have fully performed their
contractual duties
executed - Answer Contracts are executed when both parties have performed all of their
contractual duties
UCC - Answer all states but LA
- uniform set of rules for commercial transactions
Elements of a contract - Answer offer
acceptance
consideration(to support each party's promise)
capacity
legal (objective and performance)
present intent to contract - Answer Actual intent to enter into the contract upon acceptance
by the offeror objective standard of intent
- words or acts indicate intent to enter into K upon acceptance, offeror not joking or haggling
if a reasonable person familiar with the circumstances would be justified in thinking the offeror
intended to contract, then the courts will hold that the intent requirement of an offer was
satisfied.
"was there a meeting of the minds?"
Definiteness - Answer specificity in contract tends to signify an INTENT to contract & so courts
know terms which parties agreed
