Contract Law Principles Quiz

Contracts are agreements that the law will enforce. They are individual, or private, rights and duties created by oral or written agreement and consent of the parties. They may include obligations imposed by law even if the parties are not aware of those obligations.

Contract law follows the dictates of common sense and fairness. After looking at all the facts and circumstances, one should answer the following questions: 1. Was there an agreement? 2. What did each party commit to do? 3. Did either party – or both – fail to do what he or she promised? 4. If yes, how do you measure the cost to the nonbreaching party.

An express contract is where the promises are communicated by language, either oral or written. Example: John promises to paint Dan’s car in return for Dan’s promise to pay him $100.

<p>An implied contract is where the conduct of the parties indicates that they consented to be bound. Example: Toni fills her car with gas at Tina’s gas station, indicating a contract for the purchase and sale of gas.</p> Signup and view all the answers

<p>A unilateral contract is where a person accepts an offer by performing a requested act. The terms of the offer must clearly indicate that an act is required for acceptance. Example: John offers to pay Dan $100 if Dan paints his car, and Dan accepts by painting the car.</p> Signup and view all the answers