Chapters 10-16 Check Your Understanding

What types of contracts violate public policy?

- A candidate for public office paying his competitor to retire. - employment contracts that forbid membership in a union. - conducting trade with a country that is an enemy to the United States.

What conditions must be met for an offer to be legally accepted?

- It may only be accepted by the intended offeree or the offeree's agent. - Acceptance must be unequivocal with no requests for changes in the offer.

Which statement is true about the ability of minors to enter into contracts?

- A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.

How may an offer be terminated?

- An offeror may terminate an offer by revocation. - A reasonable amount of time has passed. - The offeree may make a counteroffer.

Quon and Bert have signed a contract for Bert to mow Quon's grass every week in June, July, and August for a price of $40 per week. They have agreed to all the necessary terms, but Bert has not yet mowed because it is still May. What type of contract do they have?

- Executory

What factors make an agreement enforceable under the principle of quasi-contract?

- One party is being enriched at the expense of the other. - The enriched party knows about the benefit and keeps it.

What factors are used to judge if consideration is adequate to ensure a fair bargain?

- Promises must be made with voluntary consent. - Promises exchanged may not be a preexisting duty.

What elements are required for an offer to be effective under the common law?

- The offer must be communicated to the offeree. - The terms of the offer must be reasonably definite so that all parties understand them. - The offeror must intend to be bound by the offer.

How may a revocable offer effectively be revoked?

- The offeror may withdraw the offer with a clear expression. - The offeror may take an action that contradicts the offer and make that known to the offeree.

What elements are required for courts to apply the doctrine of promissory estoppel?

- The promise must be definite and relied upon. - Enforcement of the promise is necessary to avoid injustice to the promisee. - There was a detrimental result from reliance on the promise.

What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing?

- Voidable

What is the term for the legal ability to enter into a binding contract?

- contractual capacity

A contract for a purpose that causes the parties to violate a law is:

- illegal and void

Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have?

- implied-in-fact

What is the primary purpose of the Statute of Frauds?

- requiring written evidence of agreements concerning important transactions.

What factors may cause a person to lack contractual capacity?

- severe intoxication - mental incompetence - being under the age of majority (usually 18)

What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words?

- unilateral contract

A contract for an illegal purpose is:

- void