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  1. What is a contract?
    an agreement that is legally enforceable
  2. What are the 5 elements that are essential for an agreement to be a contract?
    • mututal serious intent
    • capacity of the parties involved (age, mental ability)
    • legality of the purpose (cannot be for an illegal agreement)
    • consideration (receive sth in return)
    • in writing (only by certain agreements)
  3. What are the remedies for breach of contract?
    • monetary -- putting the plaintiff in the position he/she would have been if the contract had been fully performed
    • performance -- court ruling to enforce performance
  4. Why is there a necessity for a system to enforce contracts?
    reliability (if there is a reliable system, businesses are more likely to enter into contracts)
  5. Which state did not adopt the UCC and why?
    Louisianna -- its legal system is derived from the French legal system
  6. What are the 3 requirements for something to be considered a good?
    • personal property
    • moveable
    • tangible

    Example: mobile home, cell phone, laptop etc.
  7. What kind of contracts are covered by the UCC?
    contracts for the sale of goods
  8. What does UCC stand for?
    Uniform Commercial Code
  9. Which two laws apply to contracts?
    • UCC (sale of goods)
    • common law (all other)
  10. What is the predominant purpose test and what is it used for?
    • It is used to determine the main purpose of a contract if it is a mix of sale of a good and something else, to determine the law the contract is covered under.
    • What is the major purpose of the contract? Sale or other part?

    Example: purchase of a tv and its installment - predominant purpose is the sale, so it is covered under UCC
  11. What are the two appoachment methods to contract law?
    • rule oriented
    • result oriented
  12. What is the rule oriented approach to contract law and its objectives?
    • using strict rules in deciding contract disputes
    • contracts are hard to make and hard to break
    • objective: enhance predictability and certainty of contracts
  13. What is the result oriented approach to contract law and its objectives?
    • using concepts like "justice" and "fairness" in deciding contract disputes
    • contracts are easier to make and easier to break
    • objective: achieve justice and fairness in individual cases
  14. What is the Restatement of Contracts?
    a compilation of common law contract principles
  15. What are the 5 classifications of contracts?
    • express and implied contracts
    • bilateral and unilateral contracts
    • valid, void, voidable, and unenforceable contracts
    • executed and executory contracts
    • formal and informal contracts
  16. What is an implied contract?
    terms of the contract are implied by the behavior of the parties under the circumstances at the time
  17. What is an expressed contract?
    the terms of the contract are stated in words, either oral or in writing
  18. What is a bilateral contract?
    a promise is made in return for another promise

    the contract is formed the moment the return promise is made
  19. What is a unilateral contract?
    a promise is made in return for the performance of a requested act

    the contract is formed the moment the requested act is fully performed
  20. What is a valid contract?
    a contract that meets all of the essential elements
  21. What is a void contract?
    a contract that has no legal effect, because it has not been created in the first place (eg under duress)
  22. What is a voidable contract?
    a contract where at least one of the parties has the right to avoid the contract (eg. fraud => victim's choice)
Card Set
Review questions for Business Law and the Regulation of Business, 10th edition, Mann&Roberts, chapter 9
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