Exam 1 Vocabulary

Question 1

A declaration by a person to do or not to do a certain act

Answer 1

Promise

Question 2

The person making the promise

Answer 2

Promisor

Question 3

The person to whom the promise is made

Answer 3

Promisee

Question 4

An agreement that can be enforced in court formed by two or more parties who agree to perform or to refrain from performing some act now or in the future

Answer 4

Contract

Question 5

Contracting parties shall be bound by terms that can objectively be inferred from promises made

Answer 5

Objective Theory of Contracts

Question 6

The party making the offer

Answer 6

Offeror

Question 7

The party to whom the offer is made

Answer 7

Offeree

Question 8

A promise for a promise

Answer 8

Bi-lateral Contract

Question 9

A promise for an act

Answer 9

Unilateral Contract

Question 10

Contracts that require a special form or method of creation to be enforceable

Answer 10

Formal Contract

Question 11

No special form is required; usually based on substance rather than form

Answer 11

Informal Contract

Question 12

The terms of the agreement are fully and explicitly stated in words, oral or written

Answer 12

Expressed Contracts

Question 13

The conduct of the parties creates and defines at least some of the terms of the contract

Answer 13

Implied Contracts

Question 14

A contract that has been fully performed by both parties

Answer 14

Executed Contract

Question 15

A contract that has not yet been fully performed

Answer 15

Executory Contract

Question 16

A contract that results when the elements necessary for a contract formation are present

Answer 16

Valid Contract

Question 17

A valid contract, but one that can be avoided at the option of one or both of the parties

Answer 17

Voidable Contract

Question 18

One that cannot be enforced because of certain legal defenses against it

Answer 18

Unenforceable Contract

Question 19

No contract at all; None of the parties has any legal obligations

Answer 19

Void Contract

Question 20

An obligation or contract imposed by law, in the absence of an agreement, to prevent the unjust enrichment of one party

Answer 20

Quasi Contracts

Question 21

Contracts implied in law

Answer 21

Quasi Contracts

Question 22

Fictional contracts that courts can impose on the parties as of the parties had entered into an actual contract

Answer 22

Quasi Contracts

Question 23

A mutual understanding or meeting of the minds between two or more individuals regarding the terms of a contract

Answer 23

Agreement

Question 24

A promise or commitment to perform or refrain from performing some specified act in the future

Answer 24

Offer

Question 25

The withdrawal of a contract offer by the offeror

Answer 25

Revocation

Question 26

A rejection of the original offer and the simultaneous making of a new offer

Answer 26

Counteroffers

Question 27

Offeree’s acceptance match the offeror’s offer exactly

Answer 27

Mirror Image Rule

Question 28

A contract under which the offeror cannot revoke the offer for a stipulated time period

Answer 28

Option contract

Question 29

A voluntary act by the offeree that shows assent, or agreement, to the terms of an offer

Answer 29

Acceptance

Question 30

Acceptance takes effect at the time the offeree sends or delivers the acceptance

Answer 30

The Mailbox Rule