Ch. 9: Introduction to Contracts

Question 1

Sale

Answer 1

The passing of title to goods from a seller to a buyer for a price

Question 2

Personal Property

Answer 2

Any type of property other than an interest in real property (land).

Question 3

Real Property

Answer 3

Land and anything attached to it, including buildings as well as any right, privilege, or power in the real property, including leases, mortgages, options, and easements

Question 4

Force majeure

Answer 4

Unavoidable superior force

Question 5

Contract

Answer 5

Binding agreement that the courts will enforce

Question 6

Breach

Answer 6

Failure to perform properly

Question 7

Mutual assent

Answer 7

Requirement 1: The parties to a contract must manifest by words or conduct that they have agreed to enter into a contract. The usual method of showing mutual assent is by offer and acceptance.

Question 8

Consideration

Answer 8

Requirement 2: The cause, motive, price, or impelling influence which induces a contracting party to enter into a contract.

Question 9

Legality of object

Answer 9

Requirement 3: The purpose of a contract must not be criminal, tortious, or otherwise against public policy.

Question 10

Capacity

Answer 10

Requirement 4: The parties to a contract must have contractual capacity. Certain persons, such as those adjudicated (judicially declared) incompetent, have no legal capacity to contract, whereas others, such as minors, incompetent persons, and intoxicated persons, have limited capacity to contract. All others have full contractual capacity.

Question 11

Express Contract

Answer 11

Agreement of parties that is expressed in words either in writing or orally.

Question 12

Implied Contract

Answer 12

Inferred from the parties’ conduct, not from spoken or written words.

Question 13

Bilateral Contract

Answer 13

Contract in which both parties exchange promises.

Question 14

Promisor

Answer 14

A person making a promise

Question 15

Promisee

Answer 15

The person to whom a promise is made

Question 16

Unilateral Contract

Answer 16

Contract in which only one party makes a promise

Question 17

Valid Contract

Answer 17

Meets all of the requirements of a binding contract

Question 18

Void Contract

Answer 18

An agreement that does not meet all of the requirements of a binding contract

Question 19

Voidable Contract

Answer 19

Is a contract, but because of the manner in which it was formed or a lack of capacity of a party to it, the law permits one or more of the parties to avoid the legal duties the contract creates

Question 20

Unenforceable Contract

Answer 20

Contract for the breach of which the law does not provide a remedy.

Question 21

Executed Contract

Answer 21

A contract fully performed by all of the parties to it

Question 22

Executory

Answer 22

Means “unperformed,” applies to situations in which one or more promises by any party to the contract are as yet unperformed or where the contract is wholly unperformed by one or more of the parties

Question 23

Formal Contract

Answer 23

Depends upon a particular form, or mode of expression, for its legal existence

Question 24

Informal Contracts

Answer 24

Do not depend upon formality for their legal validity.

Question 25

Restitution

Answer 25

An obligation imposed by law to avoid injustice.