fin 240 kaplowitz worksheet 11.2: types of contracts

Implied

a contract formed by the conduct of the parties

Express

a contract formed by words

Formal

a contract that requires a special form

Informal

a contract that requires no special form

All contracts include which of the following implied terms?

a covenant of good faith and fair dealing

Bilateral

a promise for a promise

Unilateral

a promise for an act

If the offeree can accept the offer with a return promise to perform, then the contract is unilateral.

false

Most contracts are in writing and thus are considered formal contracts.

false

When a person selects the correct lottery ticket numbers, the lottery commission _____ legally required to pay the money. This is an example of a _____ contract.

is, unilateral

Under the _____ view of revocation, an offeror revoke an offer for a contract if the offeree has _____ performed.

modern, may not, unilateral, substantially

Which of the following is not a requirement for an implied contract?

the defendant had no chance to reject service or property furnished by the plaintiff

An implied contract differs from an express contract in that the conduct of the parties, rather than their words, creates and defines the terms of the contract.

true

A _____ contract is a contract that has the necessary contractual elements: agreement, _____, legal capacity of the parties, and a legal purpose. A(n) _____ contract occurs when a contract exists, but it cannot be enforced because of a legal defense.

valid, consideration, unenforceable

If one party has the legal option not to perform a contract and to have the contract declared unenforceable, the contract is called a _____ contract.

voidable