Chapter 5

Question 1

agreements that are enforceable through the law, agreed upon by two or more parties with benefits for all parties to the contract

Answer 1

contracts

Question 2

what a contract is actually going to do

Answer 2

Substantive Aspects of Contracts

Question 3

the person making the offer

Answer 3

offeror

Question 4

the person to whom the offer is being made

Answer 4

offeree

Question 5

anything that shows a willingness to conduct a business transaction

Answer 5

invitation to treat

Question 6

a promise to enter into a contract, under complete and specific terms, once there is a communicated acceptance

Answer 6

offer

Question 7

a new offer that also rejects the previous original offer

Answer 7

Counter offer

Question 8

A negative statement that terminates the current offer

Answer 8

rejection

Question 9

an offer is accepted when the acceptance is given to the postal service, not when it is received by the offeror

Answer 9

Post box rule

Question 10

the obligations each party owes to the other under the contract

Answer 10

consideration

Question 11

doing, or agreeing to do, something for another person with no expectation of getting anything in return

Answer 11

gratuitous promise

Question 12

“what one has earned”; it is how contract law determines that a reasonable price has been paid for a service

Answer 12

quantum meruit

Question 13

contracts between a potential buyer and the seller of some item whereby in exchange for a fee the seller gives the potential buyer the first chance to buy the item, up to a certain date

Answer 13

option agreement

Question 14

in a written contract, the terms that actually appear in the document

Answer 14

express terms

Question 15

items occasionaly added to contracts by judges in situations where the contract reaches the courts

Answer 15

implied terms