Gbl 385 Exam 2 (Behan) Questions and
Answers
Contract Elements
✓ ~~~A contract is a legally enforceable agreement (offer and acceptance). Voluntarily
entered between 2 or more competent parties to do or not to do something that is
possible to be done, that is not unlawful and that is supported by consideration.
Express Contract
✓ ~~~A contract in which the terms of the agreement are stated in words, oral or written.
Implied Contract
✓ ~~~a contract that comes about from the actions of the parties
Freedom of contract (voluntary act)
✓ ~~~Private or public individuals and groups (of any legal entity) to form contracts without
government restrictions
Voidable Contract for Minors
✓ ~~~- When a minor enters a contract, the contract can be canceled by the minor, or
someone on behalf of the minor.
- If it's a perishable item or a necessity (food, medicine, etc) it cannot be canceled.
- Contracts with minors require a co-signor (in most cases)
- Depending on crimes, sometimes minors can go through trial as adults (within
criminal law)
Breach of Contract
, ✓ ~~~-Failure to perform duties (Non performance or delayed)
-Unreasonable or Defective performance
-Affected party has a duty to reduce the damages that they suffered
Remedies for Breach of Contract
✓ ~~~-Legal remedy- (damages) money for economic damages only
-Equitable remedies- specific performance, injunction
Agreement (Offer and Acceptance)
✓ ~~~-Contract formation requires mutual assent to the same terms by the participating
parties.
-Recipients of the communications should have reasonably understood
-Subjective intent is relevant in determining if the parties intended to be bound to the
contract.
What is not an offer?
✓ ~~~Statement of future intent
Preliminary negotiations
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Bargained for exchange (consideration)
✓ ~~~Consideration is a bargained-for performance or return promise which is given by the
promisee in exchange for the promisor's promise. Consideration need not be furnished by
or to the parties themselves as long as it is part of the bargained exchange. (each side is
promising something in EXCHANGE for something)
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