Contracts 2 of 2 (34)

Question 1

Consideration

Answer 1

Something given or promised by one party to a contract in exchange for something given or promised by the counterparty that is legally sufficient to make a contract enforceable. It must be of value, which may include giving up a right, such as the right to file a lawsuit, but may not include past consideration or a pre-existing obligation, and must be bargained for.

Question 2

Voidable Contract

Answer 2

A contract that has the potential to become unenforceable against one or more parties due to certain defenses that may be asserted by the party wishing to avoid obligations under the contract, which may result from duress, undue influence, misrepresentation of a material fact, mistake, or lack of capacity.

Question 3

Void Contract

Answer 3

A contract that is invalid and unenforceable from the onset due to extreme duress, fraud in the execution, illegal subject matter, or the fact that a party has been adjudicated as insane.

Question 4

Statute of Frauds

Answer 4

A provision requiring certain contracts to be in writing in order for them to be enforceable because they are more susceptible to fraud, including contracts for (GROSS): the sale of Goods for $500 or more, sales of Real estate, bilateral contracts that cannot be completed within One year, contracts involving Suretyship where one party guarantees the indebtedness of another, and Statements made in consideration of marriage.