CPCU 530 chp 2 review Exam | Questions with
100% Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (31)
Requirements for an offer to be valid - intent to contract
- definite terms
- communication to other party
When can an offer be revoked? Anytime before it is accepted. Revoked offers must
be communicated.
Requirements for communication for Unilateral - performance is both acceptance and
unilateral and bilateral contracts performance
Bilateral- required to communicate acceptance
Concept of legal capacity to Capacity - ones ability to sue or be sued, including
contract the ability to understand the consequences of ones
actions. A party deemed competent to contract is
one who has the mental ability to make decisions.
Parties who typically lack Minors
competence Insane persons
Intoxicated persons
Artificial entities
, Extent of corporations competence Corporations are persons in the eyes of the law.
to enter into contracts Most states don't restrict the type of contracts they
can enter. They may be restricted by license and
regulation.
5 types of consideration sufficient - forbearance, promise to refrain from an activity
enough to enter a contract - money
- present consideration
- future consideration
- Binding promise
Insufficient consideration Past consideration
Promise to perform existing obligation
Compromise and release of claims
Exceptions to consideration - Promissory estoppel that applies when a party
requirement in contracts relies in the promise of the other party and once
enforcement of the promise would achieve justice.
- pledge to charitable organization
Recourse for an individual receiving They would not be required to pay
services from an unlicensed
individual
Why common carriers are generally Due to lack of equality of bargaining power
restricted from limiting their liability between a large and powerful entity and relatively
for negligence unless permitted by powerless consumer
statute, administrative agency ruling,
or international agreement
Available remedies to plaintiff if - recession
fraud is proven in a given case - sue for damages
100% Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (31)
Requirements for an offer to be valid - intent to contract
- definite terms
- communication to other party
When can an offer be revoked? Anytime before it is accepted. Revoked offers must
be communicated.
Requirements for communication for Unilateral - performance is both acceptance and
unilateral and bilateral contracts performance
Bilateral- required to communicate acceptance
Concept of legal capacity to Capacity - ones ability to sue or be sued, including
contract the ability to understand the consequences of ones
actions. A party deemed competent to contract is
one who has the mental ability to make decisions.
Parties who typically lack Minors
competence Insane persons
Intoxicated persons
Artificial entities
, Extent of corporations competence Corporations are persons in the eyes of the law.
to enter into contracts Most states don't restrict the type of contracts they
can enter. They may be restricted by license and
regulation.
5 types of consideration sufficient - forbearance, promise to refrain from an activity
enough to enter a contract - money
- present consideration
- future consideration
- Binding promise
Insufficient consideration Past consideration
Promise to perform existing obligation
Compromise and release of claims
Exceptions to consideration - Promissory estoppel that applies when a party
requirement in contracts relies in the promise of the other party and once
enforcement of the promise would achieve justice.
- pledge to charitable organization
Recourse for an individual receiving They would not be required to pay
services from an unlicensed
individual
Why common carriers are generally Due to lack of equality of bargaining power
restricted from limiting their liability between a large and powerful entity and relatively
for negligence unless permitted by powerless consumer
statute, administrative agency ruling,
or international agreement
Available remedies to plaintiff if - recession
fraud is proven in a given case - sue for damages
