Contracts Overview

Front

What is the fundamental purpose of contract law in legal and business contexts?

Back

To ensure that promises are kept and provide remedies if they are not

Front

What does 'consideration' refer to in a contract?

Back

Something of value exchanged between the parties

Front

Which scenario represents a breach of the initial agreement in a contract?

Back

Sarah promises to give her friend, Emily, her old laptop for free. After Emily gets the laptop, Sarah demands $200 in exchange for it.

Front

Legal capacity in the context of a contract

Back

The parties entering into the contract must have the legal capacity to do so

Front

Which scenario represents an invalid contract due to lack of acceptance from one party?

Back

Hannah promises to pay $50 to Luke if he finds her lost cat, but Luke never agrees to the deal.

Front

What is the purpose of ensuring 'legal purpose' in a contract?

Back

To align the contract with statutory laws and public policy

Front

Which scenario represents an invalid contract due to ambiguity in the contract terms?

Back

Sam and Tyler agree to a contract to build a treehouse, but the contract does not specify the dimensions, materials, or completion date.

Front

What is the purpose of ensuring 'consent' in a contract?

Back

To confirm that the agreement was entered into willingly, without any form of duress, coercion, or pressure

Front

What element of a contract did John propose when he offered to sell his car to Jan for $500?

Back

Offer

Front

Which scenario illustrates a valid acceptance in a contract?

Back

Lisa verbally agrees to the terms of a contract and signs the document