Chapter One - What is a Contract

Question 1

Contract

Answer 1

Set of legally enforceable promises

Question 2

Torts

Answer 2

Law applicable to injuries to people or property

Question 3

Agreement

Answer 3

“Meeting of the minds”

Question 4

Manifestation of Mutual Assent

Answer 4

Appearance that an agreement has been reached

Question 5

Consideration

Answer 5

The give and take that distinguishes a contract from a gift

Question 6

Capacity

Answer 6

Ability, as determined by age and mental competence, to enter into a contract

Question 7

Legality

Answer 7

An elementof an enforceable contract

Question 8

Express

Answer 8

Contract with significant terms stated orally or in writing

Question 9

Implied

Answer 9

Contract fromed without express statement of terms, by words and actions

Question 10

Bilateral

Answer 10

Contract in which both parties make promises

Question 11

Executory

Answer 11

Contract in which obligations have not been fulfilled

Question 12

Executed

Answer 12

Contract in which all obligations have been fulfilled contract

Question 13

Unilateral

Answer 13

Contract formed when one party acts in response to other party’s promise

Question 14

Formal

Answer 14

A contract required to be in a particular form

Question 15

Informal

Answer 15

Contract for which no particular form is required

Question 16

Void

Answer 16

An agreement with no legal effect

Question 17

Voidable

Answer 17

One party has power to invalidate contract

Question 18

Unenforceable

Answer 18

A contract, otherwise valid, that connot be enforced in court

Question 19

Limitations Period

Answer 19

Time limit on bringing lawsuit, based on statute of limitations

Question 20

Letter of Credit

Answer 20

An irrevocable promise by a buyer’s bank to pay the seller when conditions are met

Question 21

Bill of Lading

Answer 21

Documentation of the receipt of goods for shipment, issued by a party in the business of transporting goods

Question 22

Gift

Answer 22

Completed transfer of property without consideration

Question 23

Donor

Answer 23

Person making a gift

Question 24

Donee

Answer 24

Person receiving a gift

Question 25

Promissory Estoppel

Answer 25

Theory under which a promise can be enforced, despite lack of consideration, because of reliance on that promise and knowledge of that reliance

Question 26

State of Frauds

Answer 26

Dictates types of contracts that must be written

Question 27

Equitable

Answer 27

Based on fairness and individual circumstances

Question 28

Case Brief

Answer 28

Short summary of facts, issues, holding, and reasoning of judicial decision

Question 29

Quasi-contract

Answer 29

Theory for avoiding unjust enrichment in situations in which a contract did not actually form

Question 30

Quantum Meruit

Answer 30

An equitable theory for determining how to make the plaintiff “whole” where there is no contract dictating the amount to which a party is “legally” entitled; “as much as is deserved” to avoid unjust enrichment. This can involve payment of money, but is not hte same as a legal award of damages

Question 31

Conflict of Interest

Answer 31

Ethical issue; legal professional’s loyalties divided