LEGL 2700 Exam 2 Question and
Answers [100% Correct] 2024/2025
Latest Release!!
Contracts Enforceable agreements that yield predictable results if not honored; they do not
necessarily need to be in written form (ch 8)
Contract Law derives from either Legislation - UCC Ar...
LEGL 2700 Exam 2 Question and
Answers [100% Correct] 2024/2025
Latest Release!!
Contracts Enforceable agreements that yield predictable results if not honored; they do not
necessarily need to be in written form (ch 8)
Contract Law derives from either Legislation - UCC Article 2 pertains to the sale of goods Common
Law - judicial decisions for contracts involving items other than goods (ch 8)
bilateral contract an exchange of promises between two parties (ch 8)
unilateral contract a commitment is offered in return for performance, resulting in a situation
where only one party is obligated to fulfill the promise (ch 8)
express contracts agreements that emerge from discussions where the parties explicitly address
the terms of their contract (e.g., negotiated sale of land for building a facility) (ch 8)
implied-in-fact contracts agreements that arise from the actions of the parties instead of spoken
words (e.g., consulting an accountant implies an agreement to pay for their services, even if no explicit
payment promise is made) (ch 8)
Implied-in-law or quasi-contracts a legal remedy to prevent one party from being unjustly
enriched or when one party gains at another's expense, the law may impose an obligation on the first
party to compensate the second, despite the absence of a formal contract between them (ch 8)
voidable can be enforced until a party with the right chooses to nullify the agreement (ch 8)
unenforceable contract occurs when the non-performing party has a valid justification for failing
to comply with a promise; considered void (ch 8)
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,Requirements for an Enforceable Contract 1) a proposal to form a contract 2) acceptance of that
proposal 3) consideration for each promise 4) the capacity of both parties to enter a binding contract 5)
legality of the contract’s subject matter (ch 8)
Mirror Image Rule acceptance must be identical to the offer
i. UCC 2207: acceptance can be expressed or written, even if the terms differ
1. Unless the offer specifically restricts acceptance to original terms
2. Unless the new terms significantly diverge from the original
3. Unless the recipient refuses the goods (ch 8)
Silence is not considered acceptance unless stated otherwise (ch 8)
Defenses to Contract Enforcement - Improper format when a written document is necessary -
Absence of a genuine agreement due to fraud or mistake (ch 8)
Who does not have the capacity to be bound by contracts? Minors Intoxicated individuals
Mentally incompetent individuals (ch 8)
What types of contracts lack a lawful purpose? Contracts that necessitate illegal acts or torts or
violate commonly accepted norms (they are void), and courts typically will not enforce these contracts
(ch 8)
Termination of Contract Must occur prior to acceptance
i. Explicit actions: 1. Revocation: withdraw the offer ("I retract it!") 2. Rejection: offeree declines the offer
3. Counter-offer: offeree declines and proposes a new contract 4. Lapse of time: either a specified
deadline in the offer or after a reasonable duration
ii. By operation of law 1. Destruction of subject matter: the object of the contract is destroyed 2. Death
or mental incapacity: the offeror is unable to make decisions 3. Legality of the subject matter (ch 8)
"Meeting of Minds" shared understanding of the contract (ch 8)
2
, The elements of fraud are (absence of meeting of minds) 1) misrepresentation of a fact (opinions
do not constitute fraud) 2) intent to deceive 3) the innocent party must reasonably rely on the
misrepresentation 4) resulting harm from that reliance (ch 8)
Fraud falls under what category of law? tort (ch 8)
Mutual mistake (absence of meeting of minds) -both parties misunderstand a fundamental aspect
of the contract -the mistake must pertain to fact, not value
example: Roger discovers what seems to be a valuable topaz. Both he and Betsy assume it has a different
worth. Roger sells it to Betsy for $200. If Roger later finds it is worth $600, he cannot void the contract as
both were guessing its value. If they consult a jeweler who says it's worth $200 and later discover the
jeweler was mistaken, they can void the agreement. (ch 8)
Unilateral Mistake (absence of meeting of minds) -only one party is confused -there is no remedy
for this situation
Example: a customer visits a jewelry store intending to buy jewelry on credit. The jeweler mistakenly
believes the customer is wealthy, leading to no credit checks. Since the customer did not contribute to
the misunderstanding, the contract is not voidable due to the jeweler's error. (ch 8)
Duress (absence of meeting of minds) o Use of coercion to enter into a contract o Can be physical,
emotional, or financial o The contract can be invalidated if formed under duress (ch 8)
Undue influence (absence of meeting of minds) o A party exploits another unfairly through a
contract by abusing a position of trust or authority - often affects individuals with mental impairments or
the elderly (commonly seen in wills) o Examples of those who exert undue influence: lawyers, caregivers,
adult children o Examples of statements they might make: what if I leave you? You better agree to this
(ch 8)
Duress does not encompass threatening legal action or asserting legitimate business
consequences (ch 8)
What form does a contract need to take to be valid? - Generally, form is not critical - It can be
verbal if all elements are satisfied - Written agreements are preferable as they are easier to validate (ch
8)
3
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