Contracts Study Guide
Chapters 5-7
5.1
Define:
Contract
Offer
Acceptance
Genuine Agreement
Capacity
Consideration
Legality
Void/Voidable Contract
Unenforceable Contract
Express Contract
Implied Contract
Unilateral Contract
Bilateral Contract
__________________________________________________________________________________________
Explain:
What are the 3 Theories of Contract Law (in order) and explain each:
Name the 6 Elements of a Contract in order.
1.
2.
3.
4.
5.
6.
What are the 9 Characteristics of a Contract?
V________
V________
U________
E________
I ________
B________
U________
O________
W________
What is the difference between a valid, voidable and unenforceable contract?
What is the difference between a unilateral and bilateral contract?
How did the Industrial Revolution change the courts attitude toward interpreting
contract law?
________________________________________________________________
5.2
Define:
Invitation to Negotiate
Mirror Image Rule
Counteroffer
Revocation
Rejection
________________________________________________________________
Explain:
How does an invitation to negotiate differ from an offer?
What are the 3 requirements of an offer?
S________
D________
C________
What are the requirements of an acceptance?
What is the difference between an acceptance and a counteroffer?
When is an offer terminated?
Why is an advertisement in the newspaper considered an invitation to negotiate
rather than an offer?
What 2 rules govern the revocation of contracts?
1.
2.
How can genuine agreement be disrupted or destroyed?
________________________________________________________________
6.1
Define:
Fraud
Rescind
Material Fact
Concealment
Misrepresentation
________________________________________________________________
What are the 5 elements of Fraud?
1.
2.
3.
4.
5.
What is the difference between fraud and concealment?
What is the difference between fraud and innocent misrepresentation?
What is the difference between the remedy available for fraud and the remedy
available for misrepresentation?
________________________________________________________________
6.2
Define:
Unilateral Mistake
Bilateral Mistake
Duress
Economic Duress
Undue Influence
________________________________________________________________
Explain:
What is the difference between unilateral and bilateral mistakes?
What type of mistake will allow rescission of a contract?
What are the requirements of economic duress?
What are the requirements of undue influence?
What is the main difference between duress and undue influence?
What are 2 kinds of bilateral mistakes? Who may avoid a contract that contains
a bilateral mistake?
Name 5 circumstances that we’ve discussed that may create a defective
agreement.
________________________________________________________________
7.1
Define:
Capacity
Rebuttable Presumption
Majority
Minor/Minority
Emancipated
Abandoned
Ratify
Necessaries
Guardian
Aliens
________________________________________________________________
Explain:
At what age in the U.S. does someone reach Majority? What age did it used to
be?
Why does the law shield minors in the making of their contracts?
May a minor affirm and disaffirm parts of the same contract? Explain your
answer.
May a minor avoid a contract with another minor? Why or why not?
Are intoxicated persons always able to disaffirm their contracts? Explain your
answer.
What is an emancipated minor?
What are necessaries?
What is capacity?
When are the contracts of a mentally impaired person considered valid?