Chapter 10.

Question 1

Contract

Answer 1

A legal enforceable agreement based on legally enforced promises

Created by promises

Question 2

Caveat emptor

Answer 2

The principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made

Question 3

Elements of a contract

Answer 3

1. Mutual agreement
2. Valid consideration
3. Contractual capacity
4. Legal purpose

Question 4

Bilateral contract

Answer 4

1. Acceptance in a form of a return promise mirroring the offer
2. Two promises made
3. Binding contract once offered makes return possible
4. Both parties bound before either party has performed

Question 5

Unilateral contract

Answer 5

1. Acceptance in a form of completed act
2. One promise made
3. Binding contract once offeree completes requested performance
4. Both parties bound only after offeree had performed

Question 6

Revocation

Answer 6

Withdrawal of an offer by the offeror

Question 7

Bilateral contract revocation

Answer 7

Revocation effective before return promise made

Question 8

Express contracts

Answer 8

Contract formed by words or writing

Informal/formal contracts

Question 9

Implied contracts

Answer 9

Contract formed by conduct and surrounding circumstances

Question 10

Quasi contracts

Answer 10

Equitable remedy for unjust enrichment

Question 11

3 requirements for valid Quasi Contracts

Answer 11

1. Plaintiff furnishes property
2. Reasonable person would accept benefit conferred by plaintiff
3. Unjust enrichment for defendant to retain benefit w/o payment to plaintiff

Question 12

3 requirements for valid implied contracts

Answer 12

1. Plaintiff furnishes service or property
2. Plaintiff reasonably expected to be paid and defendant reasonably knew payment was due
3. Defendant had chance to reject service or property and did not

Question 13

Executory contract

Answer 13

1. Contract not yet fully performed
2. Fully executors contract
3. Partially executors contract

Question 14

Executed contract

Answer 14

Contract where all the parties have fully performed

Question 15

Valid and fully enforceable contract

Answer 15

Contract where all the elements of a valid contract are satisfied and there are no defenses to the contract

Question 16

Valid contract

Answer 16

1. An agreement
2. Legal sufficiency
3. Parties have capacity
4. Legal purpose

Question 17

Voidable contracts

Answer 17

1. Contract which may be enforced or cancelled by one or both of the parties
2. Problems such as substantive defenses or capacity

Question 18

Unenforceable (but valid contracts)

Answer 18

Valid contract rendered unforceable by some statute of law

Question 19

Objective theory of contracts

Answer 19

The view that contracting parties shall only be bound by terms that can be objectively inferred from promise made

Question 20

Requirements of a valid contract

Answer 20

Agreement
Consideration
Contractual capacity
Legality

Question 21

Defenses to the enforceability of a contract

Answer 21

Voluntary consent

Form

Question 22

Formal contract

Answer 22

An agreement by law that requires a specific form for its validity

Question 23

Informal contract

Answer 23

A contract that doesn’t require a specific form or method of creation to be valid

Question 24

Void contract

Answer 24

No contract at all

Question 25

Quantum meruit

Answer 25

As much as they deserve. Extend of compensation owed under a quasi contract

Question 26

Extrinsic evidence

Answer 26

Evidence not contained in the doc. Itself I.e. Testimony/other communication