BL Ch. 9

Which is considered to be a legally binding offer?

auctions without reserve

______ contracts are those that have a special form or must be created in a specific manner.

formal

what are the 2 main sources of contract law?

1. Uniform Commercial Code (UCC) 2. case law

A lack of genuine assent can result from what 4 things?

1. undue influence 2. fraud 3. duress 4. misrepresentation

In terms of contracts for the sale of goods transactions, Uniform Commercial Code Section ______ significantly modified the mirror-image rule

2-207

what is an accurate statement regarding an expression of possible interest in an exchange?

An expression of possible interest in an exchange is not an offer.

what is a situation where a valid contract may be unenforceable?

The applicable statute of limitations for the breach of a contract has expired

Which of the following is an element of an offer under common law?

The intent to be bound by an acceptance

The ______ governs letters of credit

UCC

The ______ is a statutory source of contract law in the United States applicable to transactions involving the sale of goods

Uniform Commercial Code (UCC)

Who makes an offer?

offeror

Which is a type of formal contract according to the Restatement (Second) of Contracts?

a contract under seal

In an offer, the offeror must manifest an intent to be bound by the offeree's ______

acceptance

what is an indication of the willingness of the offeree to consent to the terms of the offer?

acceptance

The first element of a contract is the _____

agreement

If the offeror wants a promise from the offeree to form a binding contract, the contract is what?

bilateral

Under ______, the terms of an offer must be definite and certain

common law

As a general rule, an advertisement _____

is an invitation to make an offer

Which is a required element for the valid acceptance of an offer?

manifestation of intent by the offeree to be bound by the acceptance

According to the mirror-image rule, if the terms of the acceptance of an offer do not mirror the terms of the offer, ______

no contract is formed

A contract must have a legal...

object

Contracts are interpreted using a(n) ______ standard, meaning that the courts are concerned with only a party's outward manifestations of his or her intent

objective

Under the common law, the agreement in a contract begins when ____

one party, the offeror, makes an offer to another party, the offeree

A(n) ______ is an agreement whereby an offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for a specified period of time

option contract

Identify the ways an offeree can manifest his or her intent to enter into a contract

performance or return promise

A contract is a set of legally enforceable...

promises

According to the mailbox rule, the acceptance of an offer is valid when it is _____

put in a mailbox

A bond used as bail in a criminal case is an example of a(n) ______

recognizance

According to the common law, which of the following is not a required element of an offer?

revocation of the offer by the offeror

The Restatement of Law is a...

statement of the law

If an offeror dies, the offer _____

terminates immediately

If the subject matter of an offer is destroyed, the offer ______

terminates immediately

The most common unilateral contract offer is a(n)

the reward

In an auction ______, the seller is merely expressing an intent to receive offers.

with reserve

Certain contracts require a(n) ______, and if there is none, the agreement will not be enforced

writing

what is a letter of credit?

an agreement by the person or institution that issues a letter to pay a sum of money on receipt of an invoice and other documents

In which of the following auctions must the seller accept the highest bid?

an auction without reserve

Which of the following is an accurate statement if an offer is directed to a specific offeree?

Only the offeree to whom the offer was directed can accept the offer.

A bond used as bail in a criminal case is which type of contract?

formal contract

When people hear the term formal contract, what often comes to mind is a(n) ______

contract under seal

what kind of contracts arise not from words but from the conduct of the parties?

implied

Who accepts the terms of an offer?

offeree

A(n) ______ arises when a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so

recognizance

______ are called simple because no formalities are required in making them

unformal contracts

Which must exist for a quasi contract to be enforced by the courts?

unjust enrichment

A ______ contract is one that contains all of the legal elements of a contract

valid

As a general rule, a ______ contract is one that will be enforced

valid

what consists of an offer and an acceptance?

agreement

A lack of genuine ______ in a contract means the contract was not entered into freely by one or more parties

assent

According to the Restatement of Contracts, which of the following is not a circumstance under which silence can constitute acceptance of an offer?

The offeree does not believe that silence constitutes acceptance and does not manifest an intent to be bound by contract.

Suppose a rejection is dispatched, but before it is received, the acceptance is communicated to the offeror. In such a case, _____

a valid contract has been formed because the rejection is not effective until it is received

What term refers to the legal ability to enter into a binding agreement?

contractual capacity

all contracts can be classified as what?

either bilateral or unilateral.

Once all the terms of a contract have been fully performed, the contract is ______

executed

what is defined as the bargained-for exchange?

consideration

Which of the following types of contracts is clearly set forth in either written or spoken words?

express contract

If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment, or even any mention of payment, you have a(n) ______ contract for the payment of his services

implied

Which is NOT a type of formal contract according to the Restatement (Second) of Contracts?

implied-in-law contract

The terms of an offer must be definite and certain, meaning that all of the ______ terms must be included

material

According to the common law, which of the following is a required element of an offer?

communication of the offer to the offeree

Which is NOT a required element for the valid acceptance of an offer?

contemporaneous acceptance of the contractual terms

what is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty

contract

To say that a contract is ______ means that the contract cannot be enforced by the courts because of an applicable law.

enforceable

The term ______ applies to a contract in which not all of the terms have been fully performed

executory

The terms of a(n) ______ contract are clearly set forth in either written or spoken words

express

The ______ rule says that the terms of an acceptance must mirror the terms of an offer.

mirror-image

A ______ is a written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument

negotiable instrument

what is an indication of the willingness of the offeror to enter into a contract?

offer

What are the two essential elements of an agreement?

offer and acceptance

A convenient way to research contract law is to reference

the Restatement (Second) of the Law of Contracts

According to UCC Section 2-207, which of the following is not a requirement for an offeree to include in an offer's acceptance terms that are additional to or different from the terms of the offer?

the subject contract does not contain any express or implied warranties.

when the offeror wants a performance to form a contract, the contract is what?

unilateral