exam 2

Question 1

contract

Answer 1

promise/set of promises. when you form a contract, you have to have intent to be bound

Question 2

contractual intent

Answer 2

forming contract uses objectives

Question 3

objective and subjective intent

Answer 3

objective: what it is
subjective: based on personal impression

Question 4

elements to a contract (list)

Answer 4

1. agreement
2. competent parties
3. genuine assent
4. consideration
5. legal purpose/object
6. legal form

Question 5

words ending in “or”

Answer 5

acting party (ex: lessor)

Question 6

words ending in “ee”

Answer 6

party acted upon (ex: lessee)

Question 7

formal contracts

Answer 7

written contracts/agreements where the formality signifies the parties intention to abide by the terms

Question 8

contracts under seal

Answer 8

stamped wax or signature followed by the word seal

Question 9

recognize contracts

Answer 9

contract of record, promise, or obligation entered into before a court (EX: a written pledge to go to trial)

Question 10

negotiable instruments

Answer 10

drafts, promissory notes, checks and certificates, that in proper form give special rights as negotiable commercial paper

Question 11

enforceability of contracts

Answer 11

valid, voidable, void ab intio, valid but unenforceable

Question 12

valid

Answer 12

agreement that is binding and enforceable

Question 13

voidable

Answer 13

agreement that is otherwise binding and enforceable but may be rejected at the option of one of the parties

Question 13

void ab intio

Answer 13

void from the beginning (lacking capacity)

Question 14

executed contracts

Answer 14

contracts that have been completely performed (nothing remains to be done)

Question 15

executory contract

Answer 15

one party still has something to do

Question 16

bilateral contract

Answer 16

promise for a promise (conditioned by the word IF) ex: ill paint your house IF you pay me $100

Question 17

unilateral contract

Answer 17

promise for an act (no if) ex: 100$ for finding lost puppy

Question 18

option contract

Answer 18

contract that allows you to get into a second contract after the fact

Question 19

right to 1st refusal

Answer 19

right of a party to meet the terms of a proposed contract before it is executed (like a real estate purchase agreement)

Question 20

expressed contract

Answer 20

99% of all contracts (governed by law) terms of the agreement of the parties