Chapter 11- Contracts

Question 1

Acceptance

Answer 1

A voluntary act by the offeree that shows consent, or agreement, to the terms of an offer.

Question 2

Adhesion Contract

Answer 2

A standard-form contract in which the stronger party dictates the terms.

Question 3

Agreement

Answer 3

A meeting of two or more minds in regard to the terms of a contract, usually broken down into two events: an offer and an acceptance.

Question 4

Bilateral Contract

Answer 4

A type of contract that arises when a promise is given in exchange for a return promise.

Question 5

Click-on Agreement

Answer 5

An agreement that arises when a buyer, engaging in a transaction on a computer, indicates assent to be bound by the terms of an offer by clicking on a button that says, for example, “I agree.”

Question 6

Consideration

Answer 6

The value given in return for a promise or a performance in a contractual agreement.

Question 7

Contract

Answer 7

An agreement that can be enforced in court; formed by two or more competent parties who agree, for consideration, to perform or to refrain from performing some legal act now or in the future.

Question 8

Contractual Capacity

Answer 8

The capacity required by the law for a party who enters into a contract to be bound by that contract.

Question 9

Counteroffer

Answer 9

An offeree’s response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.

Question 10

Covenant Not to Compete

Answer 10

A contractual promise of one party to refrain from competing with another party for a certain period of time and within a certain geographic area.

Question 11

E-Contract

Answer 11

A contract that is formed electronically.

Question 12

E-Signature

Answer 12

An electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.

Question 13

Estop

Answer 13

Bar, impede, or preclude.

Question 14

Executed Contract

Answer 14

A contract that has been completely performed by both parties.

Question 15

Executory Contract

Answer 15

A contract that has not yet been fully performed.

Question 16

Express Contract

Answer 16

A contract in which the terms of the agreement are stated in words, oral or written.

Question 17

Formal Contract

Answer 17

A contract that by law requires a specific form for its validity.

Question 18

Implied Contract

Answer 18

A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).

Question 19

Informal Contract

Answer 19

A contract that does not require a specified form or formality to be valid.

Question 20

Mailbox Rule

Answer 20

A rule providing that an acceptance of an offer becomes effective on dispatch.

Question 21

Mirror Image Rule

Answer 21

A common law rule that requires that the terms of the offeree’s acceptance adhere exactly to the terms of the offeror’s offer for a valid contract to be formed.

Question 22

Offer

Answer 22

A promise or commitment to do or refrain from doing some specified act in the future.

Question 23

Offeree

Answer 23

A person to whom an offer is made.

Question 24

Offeror

Answer 24

A person who makes an offer.

Question 25

Partnering Agreement

Answer 25

An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.

Question 26

Promise

Answer 26

An assertion that something either will or will not happen in the future.

Question 27

Promissory Estoppel

Answer 27

A doctrine that can be used to enforce a promise when the promisee has justifiably relied on it, and justice will be better served by enforcing it.

Question 28

Revocation

Answer 28

In contract law, the withdrawal of an offer by the offeror. Unless the offer is irrevocable, it can be revoked at any time prior to acceptance without liability.

Question 29

Shrink-Wrap Agreement

Answer 29

Shrink-Wrap Agreement

Question 30

Unconscionable Contract or Clause

Answer 30

A contract or clause that is void on the basis of public policy because one party is forced to accept terms that are unfairly burdensome and that unfairly benefit the other party.

Question 31

Unilateral Contract

Answer 31

A contract that results when an offer can be accepted only by the offeree’s performance.

Question 32

One of the main purposes of contract law is

Answer 32

To ensure that certain types of promises made among private parties are enforceable

Question 33

An agreement to form a contract must include

Answer 33

An offer and an acceptance

Question 34

A bilateral contract in one in which

Answer 34

Two promises are exchanged

Question 35

The case of Lucy v. Zehmer involved an offer to sell property during an evening of drinking. The court held that

Answer 35

Despite their drinking, boasting, and bragging, the parties did create a valid contract

Question 36

Filomena offers to sell Rhonda her collection of rare books. Before Rhonda even has a chance to accept, Filomena says, "Sorry, I changed my mind, no deal." This is an example of:

Answer 36

A revocation. Filomena withdrew, or revoked, the offer

Question 37

The mailbox rule states that:

Answer 37

Once an acceptance is dispatched (sent, communicated) in an authorized way, it is effective

Question 38

Consideration may be defined as:

Answer 38

something valuable that a person gives in exchange for a promise of some sort

Question 39

A definition of the term contractual capacity would be

Answer 39

The ability to enter into a contractual relationship

Question 40

An e-contract can be defined as

Answer 40

any contract formed electronically, such as over the Internet

Question 41

The Uniform Electronic Transactions Act (UETA) generally provides that

Answer 41

records, signatures, and contracts may not be denied enforceability solely due to their electronic form