Contract Law

Question 1

What is a contract?

Answer 1

A legally binding (enforceable) agreement between two or more parties.

Question 2

What are the two types?

Answer 2

Simple and Specialty.

Question 3

Specialty

Answer 3

Written, signed, sealed, delivered agreement by all parties.

Question 4

Example of specialty

Answer 4

Land, marriage, insurance contract.

Question 5

Simple

Answer 5

Orally, in writing, or deemed from the actions of the parties, most contracts are this category.

Question 6

What are the two types of simple contracts?

Answer 6

Express and Implied

Question 7

Express

Answer 7

Agreements specifically laid out orally or in writing.

Question 8

Implied

Answer 8

Agreements in which the terms are evident from the circumstances but are not explicitly stated.

Question 9

What are the necessities?

Answer 9

Food, clothing, education, shelter, and medical services.

Question 10

What is repudiated?

Answer 10

Something was done to make the contract not valid (cancelled).

Question 11

What makes a valid contract (6)?

Answer 11

Offer and acceptance, consideration, capacity, legal purpose, genuine consent, good faith.

Question 12

Offer and acceptance

Answer 12

The offer must be genuine, clear, exact, and intended as a serious offer. The acceptance has to be unqualified, clear, and it has to agree with the precise terms of the offer.

Question 13

Consideration

Answer 13

Must be consideration on both parties - a legal term meaning something of value. Can be money, goods or services. Cannot be love, gratefulness or for something done in the past.

Question 14

Capacity

Answer 14

Must be legally