BUL 4421 final exam
1. Contract: a 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 a duty.
2. a legally binding contract requires four elements:: Agreement
consideration capacity legal object
3. agreement: consists of an offer by one party, called the offeror, to enter into
a contract and an acceptance of the terms of the offer by the other party, called
the offeree.
4. offeror vs. offeree: offeror - party who makes the offer offeree - party to
whom the offer is made
5. consideration: the bargained-for exchange or what each party gets in
exchange for his or her promise under the contract.
- what a legal entity receives in return for performing a contract obligation
6. contractual capacity: the legal ability to enter into a binding agreement
ÿÿ
Most adults over the age of majority have capacity; those under the age of majority,
people suffering from mental illness, and sufficiently intoxicated persons do not
7. objective theory of contracts: we base the existence of a contract on the
parties' outward manifestations of intent and we base its interpretation on how a
reasonable person would interpret it
ÿÿThe subjective intent of parties is not usually relevant; what matters is how they
represented their intent through their actions and words
8. bilateral contract: a promise in exchange for a promise. As soon as the
promises exchanged, a contract is formed and the parties' legal obligations arise
9. unilateral contract: requires performance in order to form a contract (1.e. a
promise + a requested action). The offeror wants the offeree to do something, not
promise to do something.
- only performance by the offeree constitutes a valid acceptance
10. Express Contract: the terms of the contract are all clearly set forth in either
written or spoken words
11. implied contract: arise not from words but from the conduct of the parties
12. quasi contract: also called "implied-in-law contracts, but they are not actually
contracts. Courts impose contractual obligations on one of the parties as If a
, BUL 4421 final exam
.
contract existed to prevent one party from being unjustly enriched at the expense
of te other party.
13 void contract: not a contract at all. Either its object is illegal or it has some
defect so serious it is not a contract.
14. voidable contract: one or both of the parties has the ability to either withdraw
from the contract or enforce it.
15. elements of a valid offer: 1. offer must be communicated to offeree
2.offeror must manifest serious intent to be bound by the acceptance
3. offer must contain reasonable definite terms
16. option contract: the offeree gives the offeror consideration in exchange
for holding the offer open for a specified period of time. The offer is irrevocable
for that period of time.
17. elements of a valid offer:: 1. Offer must be communicated to offeree
ÿÿÿ2. Offeror must manifest the intent to be bound by the acceptance
3. ÿÿÿOffer must include all material terms
18. revocation: the offeror can revoke the offer at any time unless the offeree
entered into an option contract with the offeror. Revocation is effective when
the offeree receives it.
19. rejection: another way to terminate the offer, effectuated by the offeree.
Regardless of how long the offer was stated to be open, once the offeree rejects
it, it is terminated.
20. counteroffer: an offer made by an offeree to his offeror relating to the same
matter as the original and proposing a substituted bargain differing from that
proposed in the original offer
21. mirror image rule: The terms of the acceptance must mirror the terms of the
offer exactly for common law contracts. If not, no contract is formed and the
purported acceptance is treated as a counteroffer.
22. destruction or subsequent illegality of the subject matter: If the subject
matter of the offer is destroyed or becomes illegal, the offer immediately
terminates. 23. Lapse of time: If the offer states it will be held open for only a
certain time, it terminates when that time expires.
ÿÿ-In the absence of such a time condition, the offer will expire after the lapse of a
reasonable amount of time.
1. Contract: a 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 a duty.
2. a legally binding contract requires four elements:: Agreement
consideration capacity legal object
3. agreement: consists of an offer by one party, called the offeror, to enter into
a contract and an acceptance of the terms of the offer by the other party, called
the offeree.
4. offeror vs. offeree: offeror - party who makes the offer offeree - party to
whom the offer is made
5. consideration: the bargained-for exchange or what each party gets in
exchange for his or her promise under the contract.
- what a legal entity receives in return for performing a contract obligation
6. contractual capacity: the legal ability to enter into a binding agreement
ÿÿ
Most adults over the age of majority have capacity; those under the age of majority,
people suffering from mental illness, and sufficiently intoxicated persons do not
7. objective theory of contracts: we base the existence of a contract on the
parties' outward manifestations of intent and we base its interpretation on how a
reasonable person would interpret it
ÿÿThe subjective intent of parties is not usually relevant; what matters is how they
represented their intent through their actions and words
8. bilateral contract: a promise in exchange for a promise. As soon as the
promises exchanged, a contract is formed and the parties' legal obligations arise
9. unilateral contract: requires performance in order to form a contract (1.e. a
promise + a requested action). The offeror wants the offeree to do something, not
promise to do something.
- only performance by the offeree constitutes a valid acceptance
10. Express Contract: the terms of the contract are all clearly set forth in either
written or spoken words
11. implied contract: arise not from words but from the conduct of the parties
12. quasi contract: also called "implied-in-law contracts, but they are not actually
contracts. Courts impose contractual obligations on one of the parties as If a
, BUL 4421 final exam
.
contract existed to prevent one party from being unjustly enriched at the expense
of te other party.
13 void contract: not a contract at all. Either its object is illegal or it has some
defect so serious it is not a contract.
14. voidable contract: one or both of the parties has the ability to either withdraw
from the contract or enforce it.
15. elements of a valid offer: 1. offer must be communicated to offeree
2.offeror must manifest serious intent to be bound by the acceptance
3. offer must contain reasonable definite terms
16. option contract: the offeree gives the offeror consideration in exchange
for holding the offer open for a specified period of time. The offer is irrevocable
for that period of time.
17. elements of a valid offer:: 1. Offer must be communicated to offeree
ÿÿÿ2. Offeror must manifest the intent to be bound by the acceptance
3. ÿÿÿOffer must include all material terms
18. revocation: the offeror can revoke the offer at any time unless the offeree
entered into an option contract with the offeror. Revocation is effective when
the offeree receives it.
19. rejection: another way to terminate the offer, effectuated by the offeree.
Regardless of how long the offer was stated to be open, once the offeree rejects
it, it is terminated.
20. counteroffer: an offer made by an offeree to his offeror relating to the same
matter as the original and proposing a substituted bargain differing from that
proposed in the original offer
21. mirror image rule: The terms of the acceptance must mirror the terms of the
offer exactly for common law contracts. If not, no contract is formed and the
purported acceptance is treated as a counteroffer.
22. destruction or subsequent illegality of the subject matter: If the subject
matter of the offer is destroyed or becomes illegal, the offer immediately
terminates. 23. Lapse of time: If the offer states it will be held open for only a
certain time, it terminates when that time expires.
ÿÿ-In the absence of such a time condition, the offer will expire after the lapse of a
reasonable amount of time.
