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BMAL-590 Foundations of Legal Environment of Business verified/passed
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BMAL-590 Foundations of Legal Environment of Business verified/passed
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BMAL-590 Foundations of LegalEnvironment of Business
Contract - correct answer ✔✔a promise (it can be more than one promise) that, if unfulfilled or
breached, provides the other party a legal remedy to seek damages or other relief.
A contract is comprised of voluntary promises made by and between parties that the law, if required, will
enforce.
Some special types of contracts are backed by statute (law made by legislature).
Not everyone can enter into a contract. State laws permit contracts to be entered into once a person has
attained a certain age (usually eighteen) and with mental capacity to understand the contract.
Bilateral Contract - correct answer ✔✔A promise made in exchange for another promise
Unilateral Contract - correct answer ✔✔A promise in exchange for an act
Common components of contracts - correct answer ✔✔1. Offer + acceptance = agreement
2. Consideration (bargained-for exchange)
3. Capacity
4. Legal purpose
Offer - correct answer ✔✔An offer refers to one party expressing willingness to enter into a contract. By
implication, a contract requires each party to give up something in order to gain something.
An offer can be made in writing, orally, or any combination thereof.
, The validity of an offer can be explicitly stated.
When not stated, the offer is valid for a reasonable period, based on the circumstances.
Power of acceptance - correct answer ✔✔Power of acceptance refers to the right of a person or persons
receiving the offer to accept the offer and thus create a binding contract.
The party receiving the offer must convey acceptance to the offeror(person who made the offer).
The acceptance is legally valid when it is deposited with the U.S. Postal Service. This is called "The
Mailbox Rule".
If the acceptance is not mailed, it may be expressed in any way that is reasonable, or as required by the
offeror.
Mirror image - correct answer ✔✔Under common law, an acceptance must be the mirror image of the
offer, i.e., it must accept exactly what was offered.
If not a mirror-image acceptance, it is consideration a rejection and counteroffer.
A power of acceptance can be terminated by any of the following: - correct answer ✔✔Revocation of
offer by the offeror.
Rejection of offer by the offeree.
Death or incapacity of either party.
Lapse of time.
Failure to meet a specific condition.
Consideration - correct answer ✔✔Refers to the value exchanged during the contract: each party gives
up something in order to gain something.
In most business situations, money is exchanged for products or services.
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