chapter 8 Exam 3

Question 1

contract law deals with, among other things, the formation and keeping of

Answer 1

promises

Question 2

declaration by a person to do or not to do a certain act

Answer 2

a promise

Question 3

the promisee has a right to expect or demand that something either

Answer 3

will or will not happen in the future

Question 4

contract law distinguishes between promises that create only moral obligations and promises that are

Answer 4

legally binding

Question 5

The common law governs all contracts except when it has been modified or replaced by ______ or by

Answer 5

statutory law or by administrative agency regulations

Question 6

contract la is designed to provide

Answer 6

stabiity and predictability for both buyers and sellers in the market place

Question 7

contract law assures the parties to private agreements and that the promises they make will be

Answer 7

enforceable

Question 8

an agreement that can be enforced in courtq

Answer 8

a contract

Question 9

to determine whether a contract has been formed, the element of ___ is prime importance

Answer 9

intent

Question 10

the view that contracting parties shall only be bound by terms that can objectively be inferred from promises made

Answer 10

objective theory of contracts

Question 11

intent is determinde by ____, not by personal or subjective intent or belief of a party

Answer 11

objective theory of contracts

Question 12

What are the requirements of a valid contract

Answer 12

agreement, consideration, contractual capacity, legality

Question 13

an offer and an acceptance

Answer 13

agreement

Question 14

any promise made by parties must be supported by legally sufficient and bargained for

Answer 14

consideration

Question 15

the law must recognize them as possessing characteristics that qualify them as competent parties

Answer 15

contracutal capacity

Question 16

the contract’s purpose must be to accomplish some goal that is legal and not against public policy

Answer 16

legality

Question 17

Even if all elements of contract are present, contract may be unenforceable if this is not met

Answer 17

voluntary consent, and form

Question 18

if a contract was formed as a result of fraud, mistake, or duress

Answer 18

voluntary consent

Question 19

must be in whatever form the law requires, some contracts must be in writing to be enforceable

Answer 19

form

Question 20

what are the types of contracts

Answer 20

formation, performance, and enforceability

Question 21

every contract involves two parties

Answer 21

offeror and offere

Question 22

if the offeree can accept simply by promising to perform the contract is

Answer 22

bilateral contract (promise for a promise)

Question 23

contract is formed not at the moment when promises are exchanged but rather when the contract is performed

Answer 23

unilateral contract (promise for an act)

Question 24

in contracts offers are normally revocable until

Answer 24

accepted

Question 25

require a social form or method of creation to be enforceable

Answer 25

formal contracts

Question 26

includes all other contracts and no special form is required

Answer 26

informal contracts

Question 27

terms of the agreement are fully and explicitly stated in words, oral or written

Answer 27

express contract

Question 28

contract formed in whole or in part from the conduct of the parties

Answer 28

implied contract

Question 29

IF the following exist, court will say implied contract was formed

Answer 29

1. plaintiff furnished some service or property 2. plaintiff expected to be paid for that service/ property and the defendant knew or should have known that payment was expected 3. defendant had chance to reject service/ property and didn't

Question 30

contract that has been fully performed by both parties

Answer 30

executed contract

Question 31

contract has not yet been fully performed

Answer 31

executory contract

Question 32

a valid contract has four elements

Answer 32

1. an agreement 2.supported legally sufficient consideration 3. for a legal purpose 4. made by parties who have the legal capacity to enter into contract

Question 33

a valid contract that can be avoided at the option of one or both parties

Answer 33

voidable contract

Question 34

contracts made by minors -contracts entered into under fraudulent conditons -contracts entered into under legally defined duress or undue influence

Answer 34

all examples of voidable contracts

Question 35

cannot be enforced because of certain legal defenses against it. a party failed to satisfy a legal requirement of the contract

Answer 35

unenforceable contract

Question 36

is no contract at all

Answer 36

void contract

Question 37

obligation or contract imposed by law in the absence of an agreement, to prevent the unjust enrichment of one party

Answer 37

quasi contracts

Question 38

when court imposes a quasi contract, plaintiff may recover in

Answer 38

quantum meruit ( as much as they deserve)

Question 39

describes the extent of compensation owed under a quasi contract

Answer 39

quantum meruit

Question 40

theory that indivduals should not be allowed to profit or enrich themselves inequitably at the expense of others

Answer 40

unjust enrichment

Question 41

if court determines the terms of contract are clear from the written document alone,

Answer 41

plain meaning rule will be implied

Question 42

face of the instrument:

Answer 42

written document alone

Question 43

court will consider a contract to be ambiguous:

Answer 43

1. when intent of parties cannot be determined from its language 2. when it lacks a provision on a disputed issue 3. when a term is susceptible to more than one interpretation 4. when there is uncertainity about a provision

Question 44

evidence not contained in document itself, and may include the testimony of parties, additional agreements or communications or other relevant info

Answer 44

extrinsic evidence

Question 45

study page 160 for rules of interpretation