Business Law- Chapter 9

Question 1

Legally Enforceable Contract

Answer 1

A contract in which if one party fails to perform as promised, the other party can use the court system to enforce the contract and recover damages or other remedy.

Question 2

Offeror

Answer 2

The party who makes an offer to enter into a contract.

Question 3

Offeree

Answer 3

The party to whom an offer to enter into a contract is made.

Question 4

Elements of a Contract

Answer 4

Agreement, consideration, Contractual capacity and lawful object.

Question 5

Common Law of Contracts

Answer 5

Contract law developed primarily by state court.

Question 6

Uniform Commercial Code (UCC)

Answer 6

A comprehensive statutory scheme which includes laws that cover aspects of commercial transactions.

Question 7

Restatement of the Law of Contracts

Answer 7

A compilation of model contract law principles drafted by legal scholars. The Restatement is not law.

Question 8

Objective Theory of Contracts

Answer 8

A theory that says the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Question 9

Uniform Computer Information Transactions Act (UCITA)

Answer 9

A model act that establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.

Question 10

Bilateral Contract

Answer 10

A contract entered into by way of exchange of promises of the parties.

Question 11

Unilateral Contract

Answer 11

A contract in which the offeror’s offer can be accepted only by the performance of an act by the offeree; a promise for an act.

Question 12

Formal Contract

Answer 12

A contract that requires a special form or method of creation.

Question 13

Informal Contract

Answer 13

A contract that is not formal.

Question 14

Valid Contract

Answer 14

A contract that meets all the essential elements to establish a contract; a contract that is enforceable by at least one of the parties.

Question 15

Void Contract

Answer 15

A contract that has no legal effect; a nullity.

Question 16

Voidable Contract

Answer 16

A contract in which one or both of the parties have the option to avoid their contractual obligations.

Question 17

Unenforceable Contract

Answer 17

A contract in which the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract.

Question 18

Executed Contract

Answer 18

A contract that has been fully performed on both sides.

Question 19

Executory Contract

Answer 19

A contract that has not been fully performed by either or both sides.

Question 20

Express Contract

Answer 20

An agreement that is expressed in written or oral words.

Question 21

Implied-in-Fact Contract

Answer 21

A contract in which agreement between parties has been inferred from their conduct.

Question 22

Quasi-contract (implied-in-law contract)

Answer 22

An equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed. The doctrine is intended to prevent unjust enriched and unjust detriment.

Question 23

Equity

Answer 23

A doctrine that permits judges to make decisions based on fairness, equality, moral rights and natural law.