Chapter 11 - Nature and Terminology

Question 1

Bilateral Contract

Answer 1

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

Question 2

Contract

Answer 2

An agreement that can be enforced in court; formed by two or ore parties, each of whom agrees to perform or to refrain from performing some act now or in the future.

Question 3

Executed Contract

Answer 3

A contract that has been completely performed by both parties

Question 4

Executory Contract

Answer 4

A contract that has not yet been fully performed.

Question 5

Express Contract

Answer 5

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

Question 6

Extrinsic Evidence

Answer 6

Evidence that relates to a contract but is not contained within the document itself, including the testimony of witnessed, and additional agreements and communications. A court may consider extrinsic evidence only when a contract term is ambiguous and the evidence does not contradict the express terms of the contract.

Question 7

Formal Contract

Answer 7

A contract that by law requires a specific form, such as being executed under seal, to e valid.

Question 8

Implied Contract

Answer 8

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

Question 9

Informal Contract

Answer 9

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

Question 10

Objective Theory of Contracts

Answer 10

A theory under which the intent to form a contract will be judged outward, objective facts as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions. Objective facts might include what a party said when entering into the contract, how a party acted or appeared, and the circumstances surrounding the transaction.

Question 11

Offeree

Answer 11

A person to whom an offer is made

Question 12

Offeror

Answer 12

A person who makes an offer

Question 13

Promise

Answer 13

A person’s assurance that he or she will or will not do something.

Question 14

Promisee

Answer 14

A person to whom a promise is made.

Question 15

Promisor

Answer 15

A person who makes a promise.

Question 16

Quasi Contract

Answer 16

A fictional contract imposed on parties by a court in the interests of fairness and justice; usually, quasi contracts are imposed to avoid the unjust enrichment of one party at the expense of another.

Question 17

Unenforceable Contract

Answer 17

A valid contract rendered unenforceable by some statute or law.

Question 18

Unilateral Contract

Answer 18

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

Question 19

Valid Contract

Answer 19

A contract that results when the elements necessary for contract formation (agreement, consideration, contractual capacity, and legality) are present.

Question 20

Void Contract

Answer 20

A contract having no legal force or binding effect.

Question 21

Voidable Contract

Answer 21

A contract that may be legally avoided (cancelled) at the option of one of the parties.