LSB 3213 Exam 2 OK State Questions with 100% Correct Answers | Latest Update | Verified

Bilateral (Mutual) Mistakes of Fact - A mistake by both contracting parties about one or more material facts generally entitles either party to rescind the contract What are two defenses to the enforceability of a contract? - The parties must both voluntarily consent to a form, a contract, or the contact must be in writing to be enforceable. Adhesion Contract - One that is written exclusively by one party and presented to the other on a take-it or leave-it basis. Bargained-for-exchange - Something with legally sufficient value is offered in exchange for a promise or performance. . Consideration must be given by how many of the parties? - If a promise is not supported by consideration, the promise is considered gratuitous and not legally enforceable. Fraudulent Misrepresentation - When an innocent party is induced to enter into a contract by a misrepresentation of material fact. How do courts interpret contracts? - A court will enforce a contract according to its obvious terms. Intent to Deceive - This is knowledge of a misrepresenting party that facts have been falsely represented. Unconscionable Contracts or Clauses - These are contracts whose bargains are so oppressive that the courts relieve innocent parties of part or all of their duties. What about offers made to the general public - how can these be properly revoked? - In the manner in which it was originally communicated.What are the sources of contract law? - Common Law & UCC What does inadequacy of consideration indicate? - Fraud, duress, or undue influence was involved. What does the law permit someone to do to prevent an unfair result? - If the party substantially performs the act, then the offer cannot be revoked. What happens once the parties reach an agreement? - If the other elements of a contract are present, a valid contract is formed. What if a contract has other defenses that prevent it from being enforceable? - An otherwise valid contract that is rendered unenforceable by some statute or law. What is a bilateral contract? - Offeree must only promise to perform (a promise for a promise) What is a counteroffer? - This is where a party rejects the original offer and simultaneously makes a new offer. What is a formal contract? - A contract that requires a special form or method in order to be enforceable. What is a lapse by time? - An offer terminates by law when the period of time specified in the offer has passed. What is a pre-existing duty? - The general rule is that a promise to do what one already has a legal duty to do does not constitute legally sufficient consideration. What is accord and satisfaction? - The debtor offers to pay a lesser amount than the creditor is actually owed.What is adequacy of consideration? - The fairness of the bargain. What is an express contract? - The terms of the agreement are explicitly stated, whether it is oral or it is in writing. What is an illusory promise? - The promisor has not definitely promised to do anything (no promise at all) What is an implied (in fact) contract? - Conduct creates and defines the terms of the contract. What is an informal contract? - A contract that does NOT require a specified form or method of formation in order to be enforceable. What is an option contract? - A type of irrevocable offer that is held open for a specified period of time in return of consideration.