Questions and Answers
What is an agreement between 2 or more parties that creates an obligation of some type?
Contract
What are the four essential elements of a contract?
Agreement, Consideration, Capacity, Legality
What type of essential element is comprised of offer and acceptance?
Agreement
What type of essential element is something of value exchanged by each party to bind the agreement?
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What is the type of essential element that has the legal and mental ability to enter into a contract?
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Who lacks mental capacity?
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What type of essential element is it where the contract must not be against the laws?
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What are the 3 types of contracts?
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What type of contract has its terms set down in a clear-cut fashion, orally or in writing?
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What type of contract is not stated and determined from the surrounding circumstances?
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What type of contract only exists by the direction of the court?
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What 3 things can a contract be?
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What type of contract is one that's legally binding and enforceable?
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What type of contract is initially considered valid but can be cancelled by one or more parties?
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What is a contract that never existed?
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What type of contract is when all parties have fully performed?
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What type of contract is a contract in which some performance has yet to be delivered?
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What type of contract obligates all parties to it to perform according to their promises?
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What type of contract is a contract in which one party is only obligated to fulfill a promise if another party first performs?
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What is a proposal of a bargain or exchange to another party or parties?
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What is an Offeror and an Offeree?
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Study Notes
Contracts Overview
- A contract is an agreement between two or more parties that establishes an obligation.
Essential Elements of a Contract
- Four essential elements are required for a contract:
- Agreement: Consists of offer and acceptance.
- Consideration: Something of value exchanged to bind the agreement.
- Capacity: Legal ability of parties to enter a contract.
- Legality: The contract must not violate any laws.
Capacity
- Capacity refers to the legal and mental ability to enter into a contract.
- Individuals lacking capacity include:
- Minors
- Those under the influence
- Mentally disabled individuals.
Types of Contracts
- Three types of contracts exist:
- Express Contract: Terms are clearly stated, either orally or in writing.
- Implied Contract: Not stated but inferred from circumstances or prior dealings.
- Quasi Contract: Established by court to prevent unjust enrichment when no actual contract exists.
Contract Validity
- Contracts can be categorized based on their legal standing:
- Valid Contract: Legally binding and enforceable.
- Voidable Contract: Initially valid but can be canceled by one or more parties.
- Void Contract: A contract that never existed and has no legal effect.
Contract Performance
- Two performance types of contracts:
- Executed Contract: All parties have fulfilled their obligations.
- Executory Contract: Some obligations remain unfulfilled.
Contractual Obligations
- Bilateral Contract: All parties are legally bound to perform as promised.
- Unilateral Contract: Only one party is obligated to fulfill their promise upon another party’s performance.
Offers in Contracts
- An offer is a proposal for a bargain or exchange directed to another party or parties.
- Offeror: The person making the offer.
- Offeree: The person to whom the offer is made.
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Description
Test your knowledge on the essential elements of contracts including agreement, consideration, capacity, and legality. This quiz also covers the different types of contracts and the legal implications of capacity. Dive in to enhance your understanding of contract law!
