CH 9,10,11,12

Question 1

What is an offer in contract law?

Answer 1

An offer is a proposal made by one party to another, expressing a willingness to enter into a contract on specified terms, subject to acceptance.

Question 2

What constitutes an acceptance of an offer?

Answer 2

Acceptance is the expression of agreement by the offeree to the terms of the offer. It must be clear, unequivocal, and made in the manner specified by the offeror.

Question 3

What is the objective theory of contracts?

Answer 3

The objective theory of contracts determines the existence and terms of a contract based on outward actions or statements, not on the subjective intentions of the parties.

Question 4

What is the Restatement of Contracts?

Answer 4

The Restatement of Contracts is a collection of legal principles and common law rules that provide guidance for courts interpreting contracts in the United States.

Question 5

What is an executed contract?

Answer 5

An executed contract is one where both parties have fulfilled their obligations. In other words, the contract is complete and performance is final.

Question 6

What is an express contract?

Answer 6

An express contract is a contract in which the terms are clearly stated, either orally or in writing, and both parties have explicitly agreed to the contract terms.

Question 7

What is a quasi contract?

Answer 7

A quasi contract is not a true contract but a legal concept created by courts to prevent unjust enrichment when one party benefits at the expense of another, even without a formal agreement.

Question 8

What is the Uniform Computer Information Transactions Act (UCITA)?

Answer 8

UCITA is a model law designed to regulate transactions involving computer software, electronic records, and other information technology products. It aims to provide consistency in the regulation of these transactions.

Question 9

What is an implied contract?

Answer 9

An implied contract is a legally binding agreement inferred from the actions, conduct, or circumstances of the parties, rather than from written or spoken words.

Question 10

What is an implied-in-fact contract?

Answer 10

An implied-in-fact contract arises from the circumstances or conduct of the parties that suggest mutual agreement, even without explicit verbal or written agreement.

Question 11

What is an auction contract?

Answer 11

In an auction contract, the seller offers goods to be sold, and the bids made by buyers are considered offers. The contract is formed when the highest bid is accepted by the auctioneer.

Question 12

What is a counteroffer?

Answer 12

A counteroffer is a response to an offer that changes the original terms. It constitutes a rejection of the initial offer and creates a new offer.

Question 13

What is revocation of an offer?

Answer 13

Revocation is the act of withdrawing an offer before it has been accepted, which terminates the offer and prevents any contract from being formed.

Question 14

What is supervening illegality?

Answer 14

Supervening illegality occurs when a law is passed that makes the performance of a contract illegal, thus discharging the contract.

Question 15

What happens when there is a lapse of time in an offer?

Answer 15

If an offer specifies a time limit for acceptance, failure to accept within that period causes the offer to lapse and become void. If no time limit is specified, the offer generally expires after a reasonable period.

Question 16

What is the mirror image rule in contract law?

Answer 16

The mirror image rule states that an acceptance must be an exact match to the offer. If the acceptance alters the terms of the offer, it is considered a counteroffer, not an acceptance.

Question 17

What is expressed authorization in contract law?

Answer 17

Expressed authorization occurs when the offeror explicitly gives the offeree the right to accept the offer in a particular manner, such as in writing or orally.

Question 18

What is a gift promise in contract law?

Answer 18

A gift promise is a promise made without consideration, where one party gives something voluntarily to another. Such promises are generally unenforceable because they lack the required element of consideration.

Question 19

What is illegal consideration?

Answer 19

Illegal consideration refers to an exchange that involves something prohibited by law, such as drugs or theft, and is not enforceable.

Question 20

What is an illusory promise?

Answer 20

An illusory promise is one in which the promisor does not actually commit to anything, rendering the promise unenforceable due to the lack of mutual obligation.

Question 21

What is a preexisting duty?

Answer 21

A preexisting duty exists when a party is already legally obligated to perform a task. This duty cannot serve as valid consideration for a new contract, as there is no new commitment.

Question 22

What is an output contract?

Answer 22

An output contract is an agreement where a seller agrees to sell all of their production or output of goods to a specific buyer.

Question 23

What is a requirements contract?

Answer 23

A requirements contract is a type of agreement where a buyer agrees to purchase all the goods or services they require from a particular seller.

Question 24

What is promissory estoppel?

Answer 24

Promissory estoppel is a doctrine that enforces a promise made without consideration if the promisee reasonably relies on it to their detriment.

Question 25

What is the infancy doctrine?

Answer 25

The infancy doctrine provides that minors (under 18 years old) can void most contracts they enter into, allowing them to disaffirm contracts and protect their interests.

Question 26

What is disaffirmance in contract law?

Answer 26

Disaffirmance is the legal right of a minor to void or cancel a contract they entered into, typically before they reach the age of majority.

Question 27

What is the duty of restoration?

Answer 27

The duty of restoration is the obligation of a minor who disaffirms a contract to return any property or goods received under the contract, if possible.

Question 28

What is the duty of restitution?

Answer 28

The duty of restitution requires a party who disaffirms a contract to return the benefits received under the contract or compensate the other party for those benefits.

Question 29

What is ratification in contract law?

Answer 29

Ratification occurs when a minor, upon reaching the age of majority, affirms and accepts the terms of a contract entered into during their minority.

Question 30

What is emancipation?

Answer 30

Emancipation is a legal process by which a minor gains independence from their parents or guardians and obtains the ability to enter into binding contracts.

Question 31

What are the necessaries of life for a minor?

Answer 31

Necessaries of life are basic essentials like food, clothing, shelter, and medical care that minors are obligated to pay for, even if the contract was formed during their minority.

Question 32

What is the difference between being adjudged insane and not adjudged insane?

Answer 32

If a person is adjudged insane by a court, they are legally declared mentally incompetent and cannot form contracts. If not adjudged insane, a person may still lack capacity but hasn't been legally determined to be incapable.

Question 33

How are intoxicated persons treated in contract law?

Answer 33

Intoxicated persons may disaffirm contracts if they were unable to understand the nature of the contract due to their intoxication, provided they were so impaired as to lack mental capacity.

Question 34

What are usury laws?

Answer 34

Usury laws regulate the maximum allowable interest rates that lenders can charge on loans, preventing lenders from charging excessive interest rates that could exploit borrowers.

Question 35

What is an illegal contract?

Answer 35

An illegal contract is one that involves actions or subject matter prohibited by law. Contracts formed for illegal purposes are unenforceable.

Question 36

What is a regulatory licensing statute?

Answer 36

A regulatory licensing statute requires individuals to obtain a license to engage in certain professions or businesses. Contracts made by unlicensed individuals may be unenforceable if the licensing requirement serves public protection.

Question 37

What is a revenue-raising statute?

Answer 37

A revenue-raising statute is a law requiring individuals to pay fees or taxes to the government. Contracts that violate revenue-raising statutes may still be enforceable, unlike contracts violating regulatory statutes.

Question 38

What is an exculpatory clause?

Answer 38

An exculpatory clause is a provision in a contract that seeks to release one party from liability for certain actions, often even in cases of negligence. Courts may deem such clauses unenforceable if they contravene public policy.

Question 39

What is a covenant not to compete?

Answer 39

A covenant not to compete is a contract provision that prevents one party from entering into or starting a similar business within a certain time frame and geographic area, often used to protect business interests.

Question 40

What is an unconscionable contract?

Answer 40

An unconscionable contract is one that is so one-sided or oppressive that it shocks the conscience of the court, and the court may refuse to enforce it on the grounds of fairness and equity.