WEEK 2, ch8

Question 1

a valid contract requires more than just a promise…

Answer 1

legal systems clarify when a promise becomes binding

Question 2

contract

Answer 2

legal agreement where parties promise to do something in exchange for something else

Question 3

What must contracts follow under the Common Law approach?

Answer 3

The doctrine of consideration.

Question 4

an unclear offer is not seen as a contract but typically

Answer 4

as an invitation to do business

Question 5

What is the doctrine of consideration in contract law?

Answer 5

It’s the principle that both parties to a contract must exchange something of legal value for the agreement to be enforceable.

Question 6

What does “quid pro quo” mean in the context of contracts?

Answer 6

“Something for something” — both sides must give and receive something of value.

Question 7

What qualifies as legal value in consideration?

Answer 7

Money, services, or property.

Question 8

Does consideration have to be fair or equal in value?

Answer 8

No, the value does not have to be equal or fair — just legally sufficient.

Question 9

Can past actions count as consideration?

Answer 9

No, past consideration is not valid — the exchange must be part of the current agreement.

Question 10

What is the Bargain Theory of contracts?

Answer 10

A contract is valid if the promise and return promise are bargained for — each party agrees to give something in return.

Question 11

What is emphasized in Bargain Theory?

Answer 11

A CAUSAL LINK between the promises, each promise must be made in exchange for the other.

Question 12

What mental element is required in Bargain Theory?

Answer 12

Each party must mentally consider the other’s promise as part of the deal

Question 13

What is a key problem with consideration theory in contract law?

Answer 13

One-sided promises are usually not valid because there’s no exchange of legal value.

Question 14

What is a key problem with consideration theory in contract law?

Answer 14

One-sided promises are usually not valid because there’s no exchange of legal value, sometimes the other person relies on the promise to their detriment.

Question 15

What legal principle helps fix that unfairness?

Answer 15

Promissory estoppel.

Question 16

What does promissory estoppel require?

Answer 16

That the promisor should have reasonably expected the promisee to rely on the promise.

Question 17

Can a promise be enforceable without consideration under promissory estoppel?

Answer 17

Yes, if there was reasonable reliance on the promise.

Question 18

Do civil law systems require consideration for a valid contract?

Answer 18

No, civil law systems do not use the consideration rule.

Question 19

What is the key requirement for a contract in civil law systems?

Answer 19

Clear contractual intention — both parties must intend to be legally bound.

Question 20

What happens if one party doesn’t truly intend to make a legal agreement?

Answer 20

The contract is not valid.

Question 21

Where are civil law systems mainly found?

Answer 21

In many European countries, such as Germany, France, and Italy.

Question 22

Why is timing important in contract negotiations?

Answer 22

Because it affects when an offer can be accepted and when a deal becomes legally binding.

Question 23

What must you know about the offer during negotiations?

Answer 23

How long the offer will stay open.

Question 24

When does a contract become official?

Answer 24

When an offer is accepted — that’s when both parties are legally bound.

Question 25

In the Anglo/American model, when can an offer be revoked (= taken back)

Answer 25

Anytime before acceptance is communicated.

Question 26

When is a contract formed in the Anglo/American model?

Answer 26

When the offer is accepted before it expires.

Question 27

In the Romantic model, can an offer be revoked before acceptance?

Answer 27

Yes, but if it’s revoked too early, compensation may be required.

Question 28

When is an offer valid in the Romantic model?

Answer 28

From the moment it is received by the offeree.

Question 29

When is a contract formed in the Romantic model?

Answer 29

When the offeror knows the acceptance was sent.

Question 30

In the Germanic model, can offers be freely revoked?

Answer 30

No — offers cannot be revoked until the stated time passes or a reasonable time has expired.

Question 31

When is a contract formed in the Germanic model?

Answer 31

When the offeree receives the offer.

Question 32

What legal models does Chinese Contract Law combine?

Answer 32

A mix of the Anglo/American and Germanic models.

Question 33

Can offers be revoked in Chinese Contract Law?

Answer 33

Usually yes — before acceptance is sent — but not if a deadline is given.

Question 34

Do parties have freedom to decide contract content?

Answer 34

Yes, parties usually have freedom to decide what’s in their contract.

Question 35

Are there limits to contractual freedom?

Answer 35

Yes — especially to protect consumers and prevent unfair terms.

Question 36

Why are consumers given legal protection in contracts?

Answer 36

They are often seen as the weaker party compared to businesses.

Question 37

What’s required of standard contract terms (like in business contracts)?

Answer 37

They must be reasonable and not overly one-sided.

Question 38

Can contracts be oral or written?

Answer 38

Yes — parties can choose the form, and both are legally valid.

Question 39

What’s the downside of an oral contract?

Answer 39

It’s harder to prove in court if there’s a dispute.

Question 40

Can a contract follow the law and still be invalid?

Answer 40

Yes — if it’s unfair, it can still be invalid despite being lawful.

Question 41

What are the two types of factors that affect contract fairness?

Answer 41

Internal factors (related to the disadvantaged party) and external factors (like unfair pressure or influence).

Question 42

What does it mean if a contract is null and void?

Answer 42

It’s invalid from the start and has no legal effect at all.

Question 43

What does it mean if a contract is voidable?

Answer 43

It’s valid at first, but can be cancelled by the disadvantaged party due to unfairness.

Question 44

Who might lack the legal capacity to make a contract?

Answer 44

Minors, mentally ill individuals, or others restricted by law.

Question 45

What is a unilateral mistake in a contract?

Answer 45

When one party misunderstands something about the contract.

Question 46

When can a unilateral mistake make a contract voidable?

Answer 46

If the mistake is obvious, and the other party knew or should have known about it.

Question 47

How does limited authority affect contract validity?

Answer 47

If a person or company rep lacks authority, the contract may be unenforceable.

Question 48

Can things outside the contract affect its validity?

Answer 48

Yes, they can make the contract null, void, or voidable if the agreement was unfair

Question 49

What is a bilateral mistake in contract law?

Answer 49

When both parties misunderstand the contract’s meaning or content.

Question 50

What is misrepresentation in contract law?

Answer 50

When one party gives false information, causing the other to agree unfairly.

Question 51

What are the three types of misrepresentation?

Answer 51

Fraudulent – false info given on purpose. Negligent – false info given by carelessness. Innocent – false info given without knowing it’s false, but it still causes harm.

Question 52

What is duress in contract law?

Answer 52

When a person is forced into a contract through threats, violence, or blackmail.

Question 53

What is the goal of a contract?

Answer 53

To ensure that both parties perform what they promised.

Question 54

What does the principle of good faith require?

Answer 54

Parties must act honestly, fairly, and respectfully in fulfilling their obligations.

Question 55

Is good faith enforced in all legal systems?

Answer 55

No — some systems enforce it strictly, others do not.

Question 56

Why is international trade challenging for contracts?

Answer 56

Because different countries have different legal systems.

Question 57

What are the UNIDROIT Principles used for?

Answer 57

They provide rules for international commercial contracts.

Question 58

What is the CISG?

Answer 58

The UN Convention on Contracts for the International Sale of Goods — it sets contract rules for cross-border B2B sales.

Question 59

What are INCOTERMS?

Answer 59

Standard rules by the ICC for shipping responsibilities in international trade.

Question 60

Why are Model Contracts helpful in international law?

Answer 60

They help businesses easily create clear, cross-border agreements.