Ch. 1: Classification of Contracts

Question 1

acceptance

Answer 1

manifestation of assent to the offer proposed

Question 2

bilateral contract

Answer 2

a contract in which a promise is exchanged for a promise

Question 3

consideration

Answer 3

the bargain of the contract; a benefit conferred or detriment incurred at the request of the other party

Question 4

contract

Answer 4

a legally enforceable agreement between two or more parties in which each agrees to give and receive something of legal value

Question 5

contractual capacity

Answer 5

the legal ability of a person to enter into a contractual relationship

Question 6

contractual intent

Answer 6

the purposefulness of forming a contractual relationship

Question 7

equity

Answer 7

the branch of law that deals with fairness and mercy to prevent unjust enrichment

Question 8

executed contract

Answer 8

a contract that is complete and final with respect to all of its terms and conditions

Question 9

executory contract

Answer 9

a contract in which one or both of the parties still have obligations to perform

Question 10

express contract

Answer 10

a contract manifested in words, oral or written

Question 11

formal contract

Answer 11

historically, a written contract under seal; currently, any contract so designated by a state statute

Question 12

implied-in-fact contract

Answer 12

a contract in which the promises of the parties are inferred from their actions, as opposed to specific words

Question 13

implied-in-law contract / quasi-contract

Answer 13

a legal relationship that the courts, in the interest of fairness and equity, treat in a manner similar to a contractual relationship, even though no contract exists

Question 14

informal contract

Answer 14

any nonformal contract

Question 15

mutual assent

Answer 15

agreeing to the same terms at the same time; the offer and acceptance combined

Question 16

offer

Answer 16

a proposal by one party to another manifesting an intent to enter into a valid contract

Question 17

unenforceable contract

Answer 17

a contract that is otherwise valid, but for a breach of which there is no remedy at law

Question 18

unilateral contract

Answer 18

a contract in which a promise is exchanged for an act

Question 19

valid contract

Answer 19

an agreement that meets all six contractual requirements

Question 20

void contract

Answer 20

a situation in which the parties have attempted to create a contract, but in which one or more of the requisite elements are missing, so no contract exists

Question 21

voidable contract

Answer 21

a contract that one party may avoid at their option without being in breach of contract