Contracts Final Exam QUESTIONS AND

Contracts Final Exam QUESTIONS AND ANSWERS 100% SOLVED (Newest 2025) 1) "CONTRACT" FORMATION - Correct Answers ✅- A contract is a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. (legally enforceable agreement.)

"Commercial contract": an agreement to purchase a

particular good or service.

Sources of Law: - Correct Answers ✅1) Primary Authority

2) Secondary Authority 1) Primary Authority - Correct Answers ✅Binding

precedent, judges must follow:

• Constitution • Statues • Admin. Regulation • Judicial Opinions

• Common Law
• Developed by court decisions
• General Principles are the same throughout the country

with some state variation

ii. Statutory Law: (UCC) 1 / 4

Contracts Final Exam QUESTIONS AND ANSWERS 100% SOLVED (Newest 2025)

a. Covers the sale of goods (goods: moveable, tangible

objects)

• Adopted at least in part by all states (contract law is state

law, NOT 2) Secondary Authority - Correct Answers ✅Persuasive authority, not binding; courts don't have to follow but is used as a guide by judges) • Law Review Articles • Practice Guides • Encyclopedias • Annotations • Restatement (Second) of Contracts

• CISG: UN Convention on International Sale of Goods

3 necessary elements for a contract: - Correct Answers ✅o

1.) Offer

• 2.) Acceptance
• 3.) Consideration

Mutual Assent - Correct Answers ✅A) Manifestation of mutual assent - A party is bound to a contract by the objective reasonable interpretation of her/his words and conduct in assenting to an agreement and not by the parts subjective intent. 2 / 4

Contracts Final Exam QUESTIONS AND ANSWERS 100% SOLVED (Newest 2025)

• Meeting of the minds - reaching a common agreement

Requirement of a Bargain - Correct Answers ✅- the formation of a contract requires a bargain in which there is a manifestation of mutual assent to the "exchange and consideration".

• Whether or not there is a bargain a contract may be formed

under special rules applicable to formal contracts Preliminary Negotiations - Correct Answers ✅1) A manifestation of willingness to enter into a bargain is not an offer if the person to whom it is addressed knows or has reason to know that the person making it does not intend to conclude a bargain until he has mad a further manifestation of assent.

• The court determines whether the sequence of

correspondence between the defendant and the plaintiff is merely preliminary negotiations.

• When there is not a deadline for how long the offer remains

open we infer it is open for a "reasonable time", which depends on the "facts and circumstances". 3 / 4

Contracts Final Exam QUESTIONS AND ANSWERS 100% SOLVED (Newest 2025)

-NEVER EXCEEDS 3 MONTHS

Offer - Correct Answers ✅A party makes an offer if she demonstrates a willingness to enter into a bargain under "reasonably certain terms", without the need for any further assent on her part.

• The offeror creates the power of acceptance, and can

revoke his offer at anytime.MAILBOX rule - Correct Answers ✅- An acceptance will, in some circumstances, be treated as effective as soon as it is dispatched by the offeree. Thus, if an offeree puts an acceptance in the mail BEFORE the offeror revokes the offer, then acceptance of the offer becomes effective before the offer is revoked, and the offeree wins.*As soon as the mail goes out, it is officially valid at that day and time.MAILBOX rule EXCEPTION - Correct Answers ✅-The offeror can stipulate that acceptance is ineffective until received by the offeror.Why? Because the Offeror is Master of the Offer.

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