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BUL 4421 Final exam question and answers
2025
Contract - ....ANSWER ....✔✔ - Promise or set of
promises for the breach of which the law gives a
remedy or the performance of which the law in some
way recognizes as d duty
Agreement - ....ANSWER ....✔✔ - Offer by one party
(offeror) to enter into a contract and an acceptance of
the terms of the offer by the other party (offeree)
Offeror - ....ANSWER ....✔✔ - Party that makes the
initial offer
Offeree - ....ANSWER ....✔✔ - Party with the power
to accept, reject, or counteroffer
- Party to whom an offer is made
Consideration - ....ANSWER ....✔✔ -Bargained-for
exchange
- What each party gets in exchange for their promise
under a contract
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- What a person will receive in return for performing a
contract obligation
Contractual Capacity - ....ANSWER ....✔✔ - Legal
ability to enter into a binding agreement
Groups that lack capacity - ....ANSWER ....✔✔ -
Underage individuals
- people suffering from mental illness
- Intoxicated people
Objective theory of contracts - ....ANSWER ....✔✔ -
Base the existence of a contract on the parties' outward
manifestations of intent, basing its interpretation on how
a reasonable person would interpret it
Bilateral contract - ....ANSWER ....✔✔ - Promise in
exchange for a promise
Unilateral contract - ....ANSWER ....✔✔ - An
exchange of a promise for an act
- Offeror wants the offeree to do something, rather than
promise something
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Express contract - ....ANSWER ....✔✔ - Terms of the
contract are clearly set forth in written or spoken words
Implied contract - ....ANSWER ....✔✔ - Terms of the
contract arise from conduct of the parties, not words
Void contract - ....ANSWER ....✔✔ - No contract exist
- Objective is illegal or has some defect
Voidable contract - ....ANSWER ....✔✔ - One or both
of the parties have the ability to withdraw the contract,
or enforce it
Option contract - ....ANSWER ....✔✔ - Offeree gives
the offeror a piece of consideration in exchange for
holding an offer open for a specified period of time
Revocation - ....ANSWER ....✔✔ - Offeree revokes
the offer at any time, unless the offeree enters into an
optional contract with the offeror
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Rejection - ....ANSWER ....✔✔ - Way of terminating
an offer by an offeree
Counteroffer - ....ANSWER ....✔✔ - Offer made by
offeree to offeror relating to the same matter as the
initial offer
- Propose a substituted bargain different from the one
proposed by the offeror
- Terminates the original/initial offer
Destruction of subject matter - ....ANSWER ....✔✔ - If
the subject matter of the offer is destroyed, the offer is
terminated
Illegality of the subject matter - ....ANSWER ....✔✔ -
If the subject becomes illegal, the offer is terminated
Lapse of time - ....ANSWER ....✔✔ - If the offer states
it will be helf open for only a certain period of time, it
terminates when the period ends
- If time condition is absent, the offer expires after a
reasonable amount of time
BUL 4421 Final exam question and answers
2025
Contract - ....ANSWER ....✔✔ - Promise or set of
promises for the breach of which the law gives a
remedy or the performance of which the law in some
way recognizes as d duty
Agreement - ....ANSWER ....✔✔ - Offer by one party
(offeror) to enter into a contract and an acceptance of
the terms of the offer by the other party (offeree)
Offeror - ....ANSWER ....✔✔ - Party that makes the
initial offer
Offeree - ....ANSWER ....✔✔ - Party with the power
to accept, reject, or counteroffer
- Party to whom an offer is made
Consideration - ....ANSWER ....✔✔ -Bargained-for
exchange
- What each party gets in exchange for their promise
under a contract
,2|Page
- What a person will receive in return for performing a
contract obligation
Contractual Capacity - ....ANSWER ....✔✔ - Legal
ability to enter into a binding agreement
Groups that lack capacity - ....ANSWER ....✔✔ -
Underage individuals
- people suffering from mental illness
- Intoxicated people
Objective theory of contracts - ....ANSWER ....✔✔ -
Base the existence of a contract on the parties' outward
manifestations of intent, basing its interpretation on how
a reasonable person would interpret it
Bilateral contract - ....ANSWER ....✔✔ - Promise in
exchange for a promise
Unilateral contract - ....ANSWER ....✔✔ - An
exchange of a promise for an act
- Offeror wants the offeree to do something, rather than
promise something
,3|Page
Express contract - ....ANSWER ....✔✔ - Terms of the
contract are clearly set forth in written or spoken words
Implied contract - ....ANSWER ....✔✔ - Terms of the
contract arise from conduct of the parties, not words
Void contract - ....ANSWER ....✔✔ - No contract exist
- Objective is illegal or has some defect
Voidable contract - ....ANSWER ....✔✔ - One or both
of the parties have the ability to withdraw the contract,
or enforce it
Option contract - ....ANSWER ....✔✔ - Offeree gives
the offeror a piece of consideration in exchange for
holding an offer open for a specified period of time
Revocation - ....ANSWER ....✔✔ - Offeree revokes
the offer at any time, unless the offeree enters into an
optional contract with the offeror
, 4|Page
Rejection - ....ANSWER ....✔✔ - Way of terminating
an offer by an offeree
Counteroffer - ....ANSWER ....✔✔ - Offer made by
offeree to offeror relating to the same matter as the
initial offer
- Propose a substituted bargain different from the one
proposed by the offeror
- Terminates the original/initial offer
Destruction of subject matter - ....ANSWER ....✔✔ - If
the subject matter of the offer is destroyed, the offer is
terminated
Illegality of the subject matter - ....ANSWER ....✔✔ -
If the subject becomes illegal, the offer is terminated
Lapse of time - ....ANSWER ....✔✔ - If the offer states
it will be helf open for only a certain period of time, it
terminates when the period ends
- If time condition is absent, the offer expires after a
reasonable amount of time
