PHR 915 Block 3 Questions With Complete Solutions

What is a contract correct answer: An agreement Supported by consideration Made for lawful purpose; and Between competent parties What are the requirements for an agreement correct answer: One person (offeror) must make an offer which is accepted by some other person (offeree) What is required for an offer to be valid correct answer: Contractual intention All of the necessary terms provided Communication to the offeree Does the price have to be specifically stated within the offer correct answer: Yes. If the price is not in the agreement it isn't enforceable What can lead to termination of an offer correct answer: Rejection or counter offer Death of a critical person within the contract Destruction or prior sale of a thing essential to performance Revoking by the offeror Lapse of a specified period of time or a reasonable time frame What is required for the acceptance of an offer correct answer: The completion of an act Silence is not equivalent to acceptance Offer is effective as soon as it leaves the offeree's control Negation of assent correct answer: Mutual mistake Fraud Puffery/Seller's talk Duress or undue influence What is consideration correct answer: Both parties are obligated to perform or refrain from a duty Types of consideration correct answer: -A promise does not have consideration, but if a promise is accepted it is a valid transfer -Past consideration is not consideration for a present contract -Charitable pledges who donate to a nonprofit organization (exception) -Must be full consideration, not just partial What is lawful purpose correct answer: A contract that is not enforceable in court What are examples of unlawful purpose correct answer: Gambling, usury, bribery of a public official, etc The sale of a goodwill of a business accompanied by a noncompete clause without a geographic and time What is required to be considered an incompetent party correct answer: Minors Insane people Intoxicated people