Exam 2

Question 1

What is the most important factor in determining what a contract means/whether or not it was formed?

Answer 1

Objective Intent

Question 2

To determine whether a valid contract was create, which statements will be used?

Answer 2

Statements at the time the contract was made

Question 3

Name one defense to Breach of Contract:

Answer 3

Lack of Voluntary consent (No acceptance)

Question 4

Define Bilateral Contract****

Answer 4

A promise exchanged for a promise

Question 5

Define Unilateral Contract:

Answer 5

Promise for Performance: Ex: If you drive my care to LA I will pay you $1,000

Question 6

How do you accept a Unilateral Contract

Answer 6

By completing the task in contract (Entirely finish performance completely)

Question 7

A _______ is a way to prove there is a contract.

Answer 7

Writing (Email, Written contract, etc.)

Question 8

Define Formal Contract:

Answer 8

Requires a specific form

Question 9

Define Informal Contract:

Answer 9

Does NOT require a specific form/wording.

Question 10

A(n) ______ Contract must be in writing to be enforcable

Answer 10

Formal

Question 11

A(n) ________ Contract does not have to be in writing to be enforceable.

Answer 11

Informal

Question 12

Define Expressed Contract:

Answer 12

The contract is expressed with words (written or verbal)

Question 13

Define Implied Contract:

Answer 13

The conduct of the parties creates and defines the terms of the contract (Ex: Taxi gives you a ride)

Question 14

A(n) ________ _______ is when the terms have been completed by all parties in their entirety.

Answer 14

Executed Contract

Question 15

What is the difference between an Executory and an Executed contract?

Answer 15

Excuted= All terms have been met by ALL parties

Executory=Terms of the contract have not been completed by at least 1 party

Question 16

Give an example of an Executory contract:

Answer 16

You are 1 year into your 2 year cell phone contract.

Question 17

A valid contract has ___ _________ ________ to be enforced by at least 1 party.

Answer 17

All Necessary Elements

Question 18

Four Elements of a Contract:

Answer 18

Agreement
Consideration
Capacity
Legality

Question 19

____________ the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, abstinence from a future action, and much more.

Answer 19

Consideration

Question 20

Quasi Contracts are used to avoid ______ __________.

Answer 20

Unjust Enrichment

Question 21

Define Quasi Contract:

Answer 21

Is an equitable remedy, used when there is NOT a valid contract. Benefit Conferred. Court Enforced.

Question 22

T or F: If a Unilateral (performance based) contract is rescinded before performance is completed in its entirety (partial performance) the plaintiff may use a Quasi Contract.

Answer 22

True!

Question 23

If a contract has ambiguous terms, it is held against the _______.

Answer 23

Drafter

Question 24

Quantum Meruit means __ ____ __ ________ in latin

Answer 24

As much as deserved (quasi contract)

Question 25

An offer must have _______ _____

Answer 25

Serious Intent

Question 26

T or F a statement of future intent is an offer.

Answer 26

False-Future intent NOT an offer!

Question 27

Explain the plain meaning rule:

Answer 27

Words in the contract, mean exactly as they are interpreted. The Plain meaning of of the terms.

Question 28

When an offer has been accepted by another, and you are aware, the offer is __________

Answer 28

Terminated

Question 29

A counter offer __________ the offer.

Answer 29

Terminates

Question 30

A contract when a party pays the offeror to keep the contract open for a certain period of time is a(n).

Answer 30

Option Contract- (Irrevocable Offer)

Question 31

If there is a deadline on an offer does the offer terminate on the given date? What if there is NOT a deadline?

Answer 31

Yes. If no deadline, offer terminates after a reasonable period of time.

Question 32

Define Shrink-Wrap agreement:

Answer 32

Terms of an offer are the software box, and cannot be seen until the box is opened.

Question 33

Shrink-wrap agreements are generally _____________.

Answer 33

Unenforceable

Question 34

A reward offer is an example of a(n) __________ _______.

Answer 34

Unilateral Contract (Promise for performance)

Question 35

Do you have to know about a reward offer to receive the reward?

Answer 35

Yes

Question 36

Shrink-wrap agreement includes what two parties?

Answer 36

The OEM and the consumer. NOT the retailer

Question 37

A Click on Agreement is generally ____________.

Answer 37

Enforceable. (To download you must agree to the following terms)

Question 38

A Browse-Wrap Agreement is generally __________.

Answer 38

Unenforceable (you can download without having to read the terms)

Question 39

Define UETA:

Answer 39

Uniform Electronic Transaction Act

Question 40

T or F: To be under the UETA you usually have to agree to be under it with the other party

Answer 40

True

Question 41

Shrink-wrap agreement can be enforceable only if you ____ ___ ________.

Answer 41

Keep the software

Question 42

T or F: If you hand out a business card with your email on it you are now subject to the UETA (Uniform Electronic Transaction Act)

Answer 42

True

Question 43

Under the UETA. The _______ ____ applies to email.

Answer 43

mailbox rule

Question 44

Define Mailbox Rule:

Answer 44

Acceptance upon dispatch

Question 45

Under the UETA: Typing your name at the bottom of an order/contract is equivalent to what?

Answer 45

Your signature

Question 46

Sending Records Under the UETA: The records are deemed received when they what?

Answer 46

Enter the recipients Server (Don't need to be read)

Question 47

Name the two elements of Consideration:

Answer 47

Legal Value | Bargained-for Exchange

Question 48

Define Adequacy of consideration:

Answer 48

How much consideration is given

Question 49

Adequacy of consideration is determined by the court, if the the amount ______ ___ _________ of the court it will be deemed inadequate.

Answer 49

Shocks the conscience

Question 50

If there is a lack of Adequacy of consideration and shocks the court, it indicates what two things?

Answer 50

Lack of mutual assent (Meeting of the minds) | Lack of bargained-for exchange (no consideration)

Question 51

What could allow a party to demand more consideration after the contract had been made?

Answer 51

An unforeseen difficulty

Question 52

Define Illusory Promise:

Answer 52

One party has an escape clause if they feel like it (President Holland faculty-bonus example)

Question 53

T or F Covenant not to sue is a valid contract:

Answer 53

True

Question 54

If you agree not to sue (sign the contract) they offer you $5,000. But they do not pay you the money what happens.

Answer 54

Breach of Contract, you can sue for everything. Contract void.