Contracts

Question 1

Offer, Acceptance, Consideration, Proper form (oral or written), Legal subject matter, 2 Competent parties

Answer 1

Contracts

Question 2

Can be written or oral

Must be in the form/method required by offeror

Must be mirror image - i.e. no changes in terms

Answer 2

Contracts

Question 3

Must be accepted by intended party (offeree)

Acceptance can only be made by a party who knows an offer has been made and has all of the facts - AKA a meeting of the minds

They must intend to accept

Answer 3

Contracts

Question 4

It is not acceptance; but instead becomes a counter-offer and the original offeror is now the offeree

Answer 4

Contracts

Question 5

When they RECEIVE the acceptance.

If the offeree rejects; then accepts - whatever gets to the offeror first is what is binding.

Answer 5

Contracts

Question 6

If offeror dies or becomes insane before acceptance; offer is void.

Contract is binding if acceptance occurs before death/insanity.

Answer 6

Contracts

Question 7

Offeror revokes and offeree receives revocation

Offeree finds out prior to acceptance that offeror has sold the item

In the case of an Option; offeror cannot revoke until the time of the option has elapsed

Initial rejection by offeree doesn’t void the option.

Answer 7

Contracts

Question 8

Some amount of consideration (like money) is put forth by offeror to keep the offer open for a
stated period of time

Answer 8

Contracts

Question 9

These are contracts where someone becomes the exclusive provider of something in exchange for
consideration

Companies can’t get locked in to one and then have market conditions force them to sell something at
what has become an unreasonable price

Answer 9

Contracts

Question 10

Promises to donate are legally enforceable

Basically; you can’t tell a charity; Hey; if you buy this
$100;000 piece of land; I’ll pay for the building that
will go on it; and then renege on your promise

Answer 10

Contracts

Question 11

Fraud in the execution

Formed under extreme duress - extreme

Illegal

Answer 11

Contracts

Question 12

Fraud in the inducement

Party not competent to contract

Formed under SIMPLE duress

Undue influence

Answer 12

Contracts

Question 13

The contract is unenforceable.

Example: Person signs a contract to pay $500.00 to have
their lawn re-seeded but due to clerical error; it actually reads $5000.00

Answer 13

Contracts

Question 14

They must be in writing.

Answer 14

Contracts

Question 15

o Cannot be completed within one year
o Involves the purchase of real estate
o $500+ Sale of Goods
o Co-signing and guaranteeing the debt of another

Answer 15

Contracts

Question 16

Prevents one party to a written contract from coming in after the fact and claiming that a certain
conversation took place that conflicts with what is agreed upon in the written contract

It also prevents using an oral argument to read into the meaning of what is written on paper

If it’s on paper; it trumps what was agreed-upon orally prior to the written contract

Note: does not negate oral agreements made AFTER the contract or disallow oral words from clarifying ambiguous contract language.

Answer 16

Contracts

Question 17

Contracts are assignable to a third party beneficiary; but must be done so in good faith

Obligations may be assignable- Assignor is still liable

Assignor may be released from liability if other party grants a novation

Answer 17

Contracts

Question 18

Party under contract is bankrupt

Party under contract dies or is incapacitated

Party cannot physically complete the contract (i.e. They are in prison so can’t finish building your house)

Answer 18

Contracts