Contract Law Basics Quiz

The legal framework for enforcing agreements between parties, ensuring reliability in voluntary exchanges and bridging trust gaps.

Court-determined processes for interpreting and enforcing contracts, covering aspects like agreement validity, escape clauses, breach remedies, and unclear contract terms.

A legally recognized agreement between two or more people that creates obligations enforceable in courts.

Contract law applies legal principles to a wide range of personal and economic relationships, encompassing various fields.

The primary function of contract law is to facilitate the exchange of goods, services, employment, etc., by legally recognizing agreements.

Contract law enables parties to create legally binding obligations regarding future actions before those actions take place.

Contract law influences the power dynamics within markets by defining acceptable behavior, enforceable transactions, and available remedies.

Contract law aims to create certainty in the market by clearly defining enforceable commitments and predictable outcomes.

A statement or action that expresses willingness to enter into a contract on specified terms, inviting acceptance by the other party.

An unqualified and unconditional agreement to the terms of an offer, forming a binding contract.

A general invitation to negotiate, not a binding offer. It invites interested parties to make an offer.

An offer made to the public at large, where acceptance is demonstrated by performance of the specified act.

A famous case where an advertisement offering a reward for using a product was held to be a unilateral offer, accepted by performing the act specified.

A statement of willingness to sell a good at a specific price, indicating the seller's readiness to enter into a contract if the buyer accepts.

The language used in the communication, considering the context and surrounding circumstances, to determine if it expresses a willingness to sell or simply provides a price.

The specific situation or background in which the communication took place, helping to interpret the meaning of the words used.

When the buyer agrees to the seller's offer, creating a legally binding contract.

In a contract, the person who makes the offer to sell goods or services.

In a contract, the person who accepts the offer to buy the goods or services.

A legal agreement created when an offer is accepted, binding both parties to the terms of the agreement.

Silence or inaction does not constitute acceptance of an offer.

An offer can be revoked at any time before acceptance.

Acceptance of an offer must be communicated to the offeror explicitly.

One party cannot force another party to accept a contract.

Actions can sometimes indicate acceptance, especially if there is a pattern of behavior.

A response to an offer that changes the original terms, effectively rejecting the original offer and creating a new offer.

A question or request for information about an offer, without rejecting the original offer.

When an offer that has been rejected is revived by the original offeror.

A legal concept where the court interprets an agreement based on what a reasonable person would understand, not just the subjective intentions of the parties.

When the original offeror re-offers the original terms, giving the offeree another chance to accept.

In a unilateral offer, the acceptance happens through action, and the offer becomes binding after the action is performed.

In a bilateral offer, the acceptance happens through a promise, and the offer becomes binding immediately when the promise is made.

Unilateral offers often become binding later than bilateral offers because the act of acceptance can take time to complete.