Contracts

Question 1

Define contract

Answer 1

legally enforceable agreement between parties to do (performance) or not to do (forbearance) a particular act for which the breach thereof the law provides a remedy

Question 2

express contract

Answer 2

the parties declare the terms and put their intentions into words, either oral or written

Question 3

implied contract

Answer 3

the agreement shown by act or conduct rather than words

Question 4

unilateral contract

Answer 4

one party promises to perform before the other party is obligated to perform

Question 5

Bilateral contract

Answer 5

each person promises to perform an act in exchange for another person’s promise to perform

Question 6

executory contract

Answer 6

something remains to be performed by one or both parties

Question 7

Executed contract

Answer 7

all parties have performed completely

Question 8

void contract

Answer 8

contract must be legal

Question 9

basic elements of all contracts

Answer 9

legally competent parties
mutual consent between the parties (offer/acceptance)
lawful objective
sufficient consideration

Question 10

ways to discharge a contract

Answer 10

• full performance
• release by one or all of the parties
• assignment (transfers all the interests of the assignor (principal) to the assignee
• Novation: substitution by agreement, of a new obligation for an existing one

Question 11

Breach of contract

Answer 11

unilateral rescission
lawsuit for money damages
-liquidated damages
-compensatory (court decided compensation)
-Punitive/exemplary
lawsuit for specific performance (court can demand that parties perform)