Formation

Question 1

What does a valid contract require? (3)

Answer 1

1. offer
2. acceptance, AND
3. consideration

Question 2

types of contracts (2)

Answer 2

1. bilateral
2. unilateral

Question 3

bilateral contract: exchange sought

Answer 3

promise for promise

Question 4

bilateral contract: parties bound by promise

Answer 4

both

Question 5

bilateral contract: when is revocation allowed

Answer 5

before offerree’s acceptance

Question 6

unilateral contract: exchange sought

Answer 6

promise for complete performance

Question 7

unilateral contract: parties bound by promise

Answer 7

Offeror bound ONLY when performance completed; offeree never bound to finish

Question 8

unilateral contract: when is revocation allowed

Answer 8

before offeree begins performing; after, offeror may not revoke (option K is created)

Question 9

unilateral contract: does “mere preparation” trigger irrevocability?

Answer 9

no

Question 10

offer overarching rule

Answer 10

an offer must create a reasonable expectation in the offeree that the offeror is willing to enter a contract with the offered terms