Ch 3 - Formation Of A Contract

Question 1

Actions resulting in the termination of a contract? ( 5 points)

Answer 1

Express rejection, counter offer, lapse of time, revocation, death.

Question 2

5 essential features of a contract?

Answer 2

Offer, acceptance, consideration, intention, capacity.

Question 3

General rule involving communication of acceptance?

Answer 3

Acceptance may be in the form of a written document or oral conduct.
Silence should not be considered as acceptance.

Question 4

The element of value in an agreement is defined as _______?

Answer 4

Consideration.

Question 5

What are the 3 forms of consideration?

Answer 5

1.executory: the promise to perform an action.
2.executed: act given in return for promise.
3.past: strict order that consideration must be paid/ supplied after an agreement has been formulated.

Question 6

3 laws under equitable doctrine of promissory estoppel?

Answer 6

1. Creditor makes promise to waive a debt.
2. Debtor relies on the promise to their detriment.
3. Creditor is aware of the reliance made by the debtor.