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LEB 320F Unit 7 Exam Questions and Answers
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LEB 320F Unit 7 Exam Questions and Answers
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LEB 320F Unit 7 Exam Questions and AnswersWhat are the three elements that must be present to make a contract legally enforceable? - Answer -consideration, capacity, and legality
What is a bilateral contract? - Answer -"a promise for a promise."
What is a unilateral contract? Give an example - Answer -can be accepted only by the performance of a particular act. Ex. The promise by a seller of property to pay a real estate agent a commission when the agent finds a buyer for it. When the broker produces a buyer who is ready, willing, and able to purchase the property, he or she has earned the promised commission. A mere promise by an offeree that he or she will bring in the item later does not result in the formation of a contract
What is an express contract? - Answer -the intentions of the parties are stated fully and in explicit terms, either orally or in writing
What is an implied contract? - Answer -promises (intentions) of the parties have to be inferred primarily from their conduct and from the circumstances in which it occurred
what is a quasi-contract? Give an example - Answer -exists only in those exceptional circumstances where a court feels compelled to impose an obligation upon one person regardless of whether he or she had any intention of making a contract
ex. When a doctor administers emergency medical care no kind of contract is created but a court deems the recipient must pay for the services
What is the purpose of quasi-contracts? What is this type of action called? - Answer -
imposed only in circumstances where the failure to impose such an obligation would result in one party receiving an "unjust enrichment"—a benefit which, on the grounds of fairness alone, he or she ought to pay for. Quantum meruit action - "as much as is deserved."
When is a party not able to collect from a quasi-contract? - Answer -when negligence is involved, if an express contract already covers the situation
What is a valid contract? - Answer -one in which all of the required elements are present. As a result, it is enforceable against both parties What is a voidable contract? Who can always withdraw from a voidable contract? - Answer -one of the parties to a contract has the legal right to withdraw from it at a later time without liability. Contracts in which fraud is present fall within this category, because the law permits the one who has been defrauded to set aside the contract.
What is a void contract? Under what circumstances can a contract be declared void? - Answer -so far as the law is concerned, they never existed at all. Contract can be declared void if: one of the parties is wholly incompetent at the time of contracting, or the purpose of the contract is totally illegal
What is an unenforcable contract? Give an example. - Answer -was valid at the time it was made but was subsequently rendered unenforceable because of the application of some special rule of law. Ex. People discharged in bankruptcy
What is a contract of adhesion? - Answer -one party—usually having greatly superior bargaining power than the other—prepares the terms of a proposed contract and presents it to the other party on a take-it-or-leave-it basis
Hartland Computers Leasing Corp v. The Insurance Man Inc - premise - Answer -
Hartland leases a computer to The Insurance Man (TIM). When the computer stops working TIM stops paying which is a breach of contract. Hartland sues for the payments
not made. The trial judge concludes this is an adhesion contract, disregards the disclaimers of liability, and rules against Hartland. Hartland appeals.
Hartland Computers Leasing Corp v. The Insurance Man Inc - outcome - Answer -
reversed; adhesion contracts are enforceable if they are reasonable.
What is an Executory contract? - Answer -a contract in the process of being executed
What are the two parts of an agreement? - Answer -The offer and the acceptance
What are the requirements of an offer? - Answer -If the court finds that both parties' apparent intentions were the same then there is a contract, there is a reasonably definite indication of what the offeror and the offeree are to do, and there is a communication of the proposal to the intended offeree
What does reasonably definite mean? - Answer -The terms of an agreement have to be definite enough that a court can determine whether both parties lived up to their promises; it must cover all major matters
Under the UCC how definite must an offer be? - Answer -even if terms are left open, if (1) the court finds that the parties intended to make a binding contract and (2) the agreement and the surrounding circumstances give the court a reasonably certain basis
for granting an appropriate remedy, then the offer is real.
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