Basic Rules

Question 1

Define MUTUAL ASSENT

Answer 1

Offer and Acceptance

assent must be justified: reasonable person standard

Question 2

Define OFFER

Answer 2

Manifestation of willingness to enter into bargain made to justify another person in understanding that assent to bargain is invited and will conclude it

Question 3

Define ACCEPTANCE

Answer 3

Manifestation of assent to the terms of the offer by Offeree in manner invited or required by Offeror

Question 4

Define CONSIDERATION

Answer 4

bargain for exchange in which the promisee gives its promise or performance in exchange for the promisor’s offer

Question 5

Define WILLINGNESS

for willingness to enter bargain

Answer 5

willingness is shown by reasonable meaning of words and actions

Question 6

Define OPTION CONTRACT

Answer 6

Offeree provides some partial performance, such as a downpayment, in order to have the offer held open for Offeree’s consideration for a set amount of time

Question 7

Define ADHESION CONTRACT

Answer 7

where target must respond by a given date with objections, or like in credit cards where if you continue to use after a given date you are accepting the change in terms

Question 8

Define FORBEARANCE

Answer 8

part of bargain for exchange, bargaining NOT to do something which one has a legal right in exchange for consideration

Question 9

Define SUFFICIENCY

Answer 9

something that has legal value in the eyes of the law

Question 10

Define SHAM CONSIDERATION

Answer 10

a gift “dressed” like a bargain

Question 11

Define ILLUSORY PROMISE

Answer 11

when lack of mutuality of obligation is part of the bargain for exchange

(one-sided)

Question 12

Define PROMISSORY ESTOPPEL

Answer 12

when a party relies on promises of another to their detriment

Question 13

Define PAROL EVIDENCE

Answer 13

evidence, written or oral, showing that a written agreement is not the full expression of a contract between parties

Question 14

Define CONTRACT

Answer 14

Manifestation of mutual assent.

To create, need: 
parties capable of forming a contract
consent
a lawful object to contract for
consideration

Question 15

Define PAST CONSIDERATION

Answer 15

when a contract attempts to offer as consideration an act or promise which occurred prior to the Promise at issue

Question 16

Define PRE-EXISTING LEGAL DUTY

Answer 16

when a party is already bound to make some performance by prior obligation, which prevents formation of additional obligation to the original without bargaining for additional consideration

Question 17

Define CAVEAT EMPTOR

Answer 17

buyer beware - it is buyer’s responsibility to fully vet seller and object of purchase prior to making deal.