Cahpeter 11

Question 1

Bilateral contract

Answer 1

A type of contract that arises when a promise is given in exchange for a return promise

Question 2

Contract

Answer 2

An agreement that can be enforced in court; formed by two or more parties, each of whom agrees to perform or to refrain from performing some act now or in the future

Question 3

Executed contract

Answer 3

A contract that has been completely performed by both parties

Question 4

Executory contract

Answer 4

A contract that has not as yet been fully performed

Question 5

Express contract

Answer 5

A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.

Question 6

Extrinsic evidence

Answer 6

Evidence that relates to a contract but is not contained within the document itself such as the testimony of parties and witnesses, or additional agreements or communications. A court may consider extrinsic evidence only when a contract term is ambiguous and the evidence does not contradict the express terms of the contract

Question 7

Formal contract

Answer 7

A contract that by law requires a specific form, such as being executed under seal, to be valid

Question 8

Implied contract

Answer 8

A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract) also known as implied in fact contract

Question 9

Informal contract

Answer 9

A contract that does not require a specified form or formality in order to be valid

Question 10

Objective theory of contracts

Answer 10

A theory under which the intent to form a contract will be judged by outward, objective facts (what the party said when entering into the contract, how the party acted or appeared, and the circumstances surrounding the transaction) as interpreted by a reasonable person, rather than by the parties own secret, subjective intentions

Question 11

Offeree

Answer 11

A person to whom an offer is made

Question 12

Offeror

Answer 12

A person who makes an offer

Question 13

Promise

Answer 13

A person’s assurance that he or she will or will not do something

Question 14

Promisee

Answer 14

A person to whom a promise is made

Question 15

Promisor

Answer 15

A person who makes a promise

Question 16

Quantum meruit

Answer 16

Literally (as much as he deserves) – an expression describing the extent of liability on a contract implied in law (quasi contract) An equitable doctrine based on the concept that one who benefits from another labor and materials should not be unjustly enriched thereby but should be required to pay a reasonable amount for the benefits received even absent a contract

Question 17

Quasi contract

Answer 17

A fictional contract imposed on parties by a court in the interest of fairness and justice; usually, quasi contract or imposed to avoid the unjust enrichment of one party at the expense of another

Question 18

Unenforceable contract

Answer 18

A valid contract rendered unenforceable by some statute or law

Question 19

Unilateral contract

Answer 19

A contract that results when an offer can only be accepted by the offeree’s performance

Question 20

Valid contract

Answer 20

A contract that results when elements necessary for contract formation (agreement, consideration, legal purpose, and contractual capacity) are present

Question 21

Void contract

Answer 21

A contract having no legal force or binding effect

Question 22

Voidable contract

Answer 22

A contract that may be legally avoided (canceled, or annulled) at the option of one of the parties