Chapter 9

Question 1

Contract

Answer 1

A promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty

Question 2

Contracts are composed of

Answer 2

Offeror- Party who makes an offer
Offeree- Party to whom an offer is made

Question 3

Element of a valid contract

Answer 3

Agreement
lawful object
Consideration
contractual capacity

Question 4

Defences to the enforement of a contract

Answer 4

Genuineness of assent: lacks consent if obtained by duress, undue infulence or fraud
Writing and form

Question 5

Common law of contracts

Answer 5

Contract law developed primarily by state courts

Question 6

Uniform Commercial Code (UCC)

Answer 6

Comprehensive statutory scheme that includes laws that cover aspects of commercial transactions
Article 2 (Sales)
Article 2A (Leases)

Question 7

Bilateral contract

Answer 7

Offeror’s promise is answered with the offeree’s promise of acceptance
- No act of performance os necessary

Question 8

Unilateral contract

Answer 8

Offeror’s offer can be accepted only by the performance of an act by the offeree

Question 9

Formal contracts

Answer 9

Require a special form or method of creation

Question 10

Types of formal contacts

Answer 10

-Contracts under seal
-Recognizances
-Negotiable instruments
-Letters of credit

Question 11

Informal contracts

Answer 11

No special form or method is required
- Leases
- Sales contracts
- Service contracts

Question 12

Valid contract

Answer 12

Contract that meets all of the essential elements to establish a contract
At least one party can enforce the contact

Question 13

Void contract

Answer 13

Contract that has no legal effect
Neither party is obligated to perform
Neither party can enforce the contract

Question 14

Voidable contract

Answer 14

One or both parties have option to void their contractual obligations

Question 15

Executory contract

Answer 15

Not fully performed by either or both sides

Question 16

Express contract

Answer 16

Expressed in writing or verbally

Question 17

Implied-in-fact contract

Answer 17

Agreement between parties has been inferred from parties’ conduct

Question 18

Implied in law

Answer 18

Allows a court to award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed

Question 19

Equity

Answer 19

A doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law
- There is no right to a jury trial in an equitable action