Exam 8: Introduction to Contracts

The term consideration refers to the apparent voluntary consent of the parties to contract.

A n unenforceable contract is one that cannot be enforced because of certain legal defenses against it.

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had

Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is

Some contracts must be in writing to be enforceable.

Foster promises to buy Gideon's trumpet for $75. Gideon is

A bilateral contract is a promise for a promise.

E-contracts require the same basic requirements as valid paper contracts.

Informal contracts are usually based on their substance rather than their form.

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

A n express contract is stated in words, oral or written.

A letter-of-credit agreement between Rural Feed Corporation and Soy Farms Inc. requires Rural's bank to pay Soy on receipt of invoices. This is

Failure to perform a moral obligation usually creates legal liability.

The party making a promise is the promisor .

A unilateral contract comes into existence at the moment promises are exchanged.

A declaration that something will happen in the future is a promise .

In contract law, intent is determined by the subjective theory of contracts.

A contract that has been fully performed by the parties is an executory contract .

If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.