What are the 4 elements of a valid contract? - Answer-1. agreement
2. consideration
3. legality
4. capacity
What is a contract? - Answer-a legally binding agreement - a private agreement that is backed up by law
elements - agreement, consideration, legality, capacity
What are the 4 classi...
LEB 320F - Exam 3 Questions with
Correct Answers
What are the 4 elements of a valid contract? - Answer-1. agreement
2. consideration
3. legality
4. capacity
What is a contract? - Answer-a legally binding agreement - a private agreement that is
backed up by law
elements - agreement, consideration, legality, capacity
What are the 4 classifications every contract has? - Answer-1. bilateral v. unilateral
2. express v. implied v. quasi
3. valid v. void v. voidable v. unenforceable
4. negotiated v. adhesive
What does whether a contract is bilateral or unilateral address? - Answer-"what does
the promisor want?" or "what does the promise need to give the promisor?"
What does a bilateral contract mean? - Answer-a promise for a promise
most contracts are bilateral in nature - promise now for performance later
ex - Astrid is a singer - "Astrid, I promise to pay you $200 if you promise to come sing a
song in my office at 2 o’clock"
-the promise was made now, but the performance won't be until later
What does a unilateral contract mean? - Answer-a promise for performance
there is no contract until the performance actually happens
ex - Astrid is a singer - "Astrid, if you come by and sing to me at 2 oclock, I'll pay you
$200"
-the only breach that might happen in the unilateral situation is that she might show up
and sing and I don't pay her
-even if Astrid doesn't show up to sing, no contract was breached
How can a contract be created expressly? How can a contract be created impliedly? -
Answer-expressly - through our words
impliedly - through our actions
What is an express contract? - Answer-signing something, written contract, verbal
contract, etc.
What is an implied contract? - Answer-ex- purchasing groceries, eating at a restaurant,
barbershop
,What is a quasi contract? - Answer-actually not a contract at all - a situation where a
contract does not exist, and the court creates one
the court says "we've got a contract type situation in the absence of an actual contract"
(here court = judge)
quasi damages are used when there is not contract, but the court believes if the
defendant pays, things will be made right - in the case of unjust enrichment (unjust
enrichment leads to the plaintiff being paid for the fair market value of their services
-ex- a soctor billing for services that weren't signed for
When are quasi court damages used? - Answer-when there is no contract, but the court
believes if the defendant pays, things will be made right - in the case of unjust
enrichment (unjust enrichment leads to the plaintiff being paid for the fair market value
of their services
-ex- a doctor billing for services that weren't signed for
What is a valid contract? - Answer-one that has all of the elements
When is a contract void? - Answer-when all 4 elements aren't present - it never was a
contract in the first place (ex- if the contract is illegal)
neither party is bound - you cannot breach it because there's nothing to breach
What is a void contract? - Answer-never was a contract in the first place - when all 4
elements aren't present
What is a voidable contract? - Answer-where one of the parties can walk away without
penalty
ex- an adult goes into business with a minor
-minors, for a period of time, have the freedom to walk away without penalty (but the
adult can't walk away)
What is an unenforcable contract? - Answer-a valid contract that later becomes
unenforcable (by some operation of law)
When is a contract unenforcable? - Answer-nothing starts out as unenforcable - the
court won't back it up anymore
what are some operations of law that might make a completely valid contract
unenforcable?
1. if you want to sue someone for breach of contract after the statute of limitations
(usually 1 year after the breach) has expired
2. if at the time of agreement the contract is legal, but before the time the contract is
going to be acted on a piece of legislation is passed making the contract illegal
-it was legal when the agreement was struck, but it became illegal
-called intervening illegality
, What are some operations of law that might make a completely valid contract
unenforcable? - Answer-1. if you want to sue someone for breach of contract after the
statute of limitations (usually 1 year after the breach) has expired
2. if at the time of agreement the contract is legal, but before the time the contract is
going to be acted on a piece of legislation is passed making the contract illegal
-it was legal when the agreement was struck, but it became illegal
-called intervening illegality
What is whether a contract is negotiated or adhesive concerned with? - Answer-how did
we arrive at the terms?
how did you settle on those terms?
When is a contract considered negotiated? - Answer-where we both had a say in it
When is a contract considered adhesive? - Answer-when it's a take it or leave it contract
ex- cell phone contract, lease agreement
okay, because nobody's making you have an apartment or a cell phone
9/10/13 ethics - Answer-ethics- about morality, but not necessarily legality (the moral
code that a subset of society follows)
utilitarianism
-greatest good
-ends justify means
-John Stuart Mill
-Jeremy Rotham
deontology
-rules matter
-follow the code
-ten commandments
-golden rule
-Immanuel Kant
virtue ethics
-what is the character of the actor?
-honesty, integrity, etc.
-Aristotle
9/26/13 ethics - Answer-scenario: if someone's a salesman of a company and uses their
own car, the company reimburses them for mileage. If the company says they'll pay
them back once a quarter for a car wash if they bring in a receipt for the car wash.
-what id you already get free car washes?
-is it ethical to take a benefit of being reimbursed if you don't have to pay for it to begin
with? (basically, make money off of doing something when you should be breaking
even)
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