BUL 4421 Gendler FINAL Review FAU Exam 2024 Questions With Correct Solutions!!

Contract - ANSWERSA promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. Agreement - ANSWERSConsists of an offer by one party, called the offeror, to enter into a contract and an acceptance of the terms of the offer by the other party, called the offeree. Consideration - ANSWERSThe bargained for exchange or what each party gets in exchange for his or her promise under the contract. What a person will receive in return for performing a contract obligation. Contractual Capacity - ANSWERSThe legal ability to enter into a binding agreement. Most adults over the age of majority have this but those under the age of majority, people suffering from mental illness, and sufficiently intoxicated do not. Objective Theory of Contracts - ANSWERSWe base the existence of a contract on the parties' outward manifestations of intent and we base its interpretation on how a reasonable person would interpret it. The subjective intent of parties is not usually relevant; what matters is how they represented their intent through their actions and words. Bilateral Contract - ANSWERSA promise in exchange for a promise. As soon as the promises are exchanged, a contract is formed, and the parties' legal obligations arise. Unilateral Contract - ANSWERSRequires performance in order to form a contract (i.e., a promise + a requested action). The offeror wants the offeree to do something, not promise to do something. Express Contract - ANSWERSThe terms of the contract are all clearly set forth in either written or spoken words. Implied Contract - ANSWERSArise not from words but from the conduct of the parties. Void Contract - ANSWERSNot a contract at all. Either its object is illegal, or it has some defect so serious it is not a contract. Enforceable - ANSWERSA void contract is never __________. Voidable Contract - ANSWERSOne or both of the parties has the ability to either withdraw from the contract or enforce it. (Someone lacks contractual capacity, or lacks legal consent). Option Contract - ANSWERSThe offeree gives the offeror consideration in exchange for holding the offer open for a specified period of time. Revocation - ANSWERSThe offeror can revoke the offer at any time unless the offeree entered into an option contract with the offeror. Becomes effective when the offeree receives it. Rejection - ANSWERSAnother way to terminate the offer, effectuated by the offeree. Regardless of how long the offer was stated to be open, it is terminated once the offeree does this. Counteroffer - ANSWERSAn offer made by an offeree to his/her offeror relating to the same matter as the original and proposing a substituted bargain differing from that proposed in the original offer. This terminates the original offer. Destruction or Subsequent Illegality of the Subject Matter - ANSWERSIf the subject matter of the offer is destroyed or becomes illegal, the offer immediately terminates. Lapse of Time - ANSWERSIf the offer states it will be held open for only a certain time, it terminates when that time expires. Reasonable Amount of Time - ANSWERSIn the absence of such a time condition (lapse of time), the offer will expire after the lapse of a __________. Authorized Means of Acceptance - ANSWERSIf the offer specifies that acceptance must be communicated by the specific mode, that mode is the only means for accepting the offer. If no mode of communication is specified in the offer any reasonable means of acceptance is valid. Unauthorized Means of Acceptance - ANSWERSWhen an offer specifies that acceptance must be communicated by a particular mode, no other form of acceptance is valid. Performance by the Offeree - ANSWERSFor a Unilateral Contract, only __________ constitutes a valid acceptance. Types of Consideration - ANSWERS- A benefit to the promisee - A detriment to the promisor - A promise to do something - A promise to refrain from doing something Adequacy of Consideration - ANSWERSThe court seldom considers this, and the court does not weigh whether you made a good bargain. Exception to Adequacy of Consideration - ANSWERSIf the court believes fraud or undue influence occurred, the court may look at Adequacy of Consideration. Illusory Promise - ANSWERSIs not a promise nor a consideration at all. Example of Illusory Promise - ANSWERSShawn offers to sell Molly his skis for $300, and Molly responds, "I'll look at them in the morning, and if I like them, I'll pay you". Enforcement of Promise - ANSWERSFor a court to enforce a promise, both parties must provide valid consideration, consideration by one party only is insufficient to support an enforcea