Understanding Contracts and Legal Principles

What is the primary principle of the law of agency?

• An agent acts on behalf of a principal.

• An agent can only act independently.

• An agent is responsible for their own decisions without any guidance.

• A principal must always be present during the agent's actions.

Define a unilateral contract and provide an example.

• A unilateral contract requires mutual agreement from both parties.

• An example of a unilateral contract is a lease agreement between a landlord and tenant.

• A unilateral contract is a type of contract that cannot be revoked once made.

• An example of a unilateral contract is a reward contract, such as offering $100 to anyone who finds and returns a lost dog.

What are the key characteristics of a bilateral contract?

• Consideration from one party, no obligations, informal agreement.

• Unilateral consent, no consideration, vague obligations for one party.

• Mutual consent, consideration, defined obligations for both parties.

• Mutual agreement, no defined terms, only one party benefits.

List three types of enforceable contracts.

• Implied contracts

• Bilateral contracts, Unilateral contracts, Executed contracts

• Non-binding agreements

• Oral agreements

Explain the four corners doctrine in contract law.

• The four corners doctrine allows for external evidence to interpret contracts.

• The four corners doctrine requires contracts to be verbal rather than written.

• The four corners doctrine states that all parties must sign the contract for it to be valid.

• The four corners doctrine limits contract interpretation to the document's text alone.

What is the hierarchy of courts in the United States?

• District Courts > Supreme Court > Specialized Courts > Courts of Appeals

• Specialized Courts > Courts of Appeals > Supreme Court > District Courts

• Supreme Court > District Courts > Courts of Appeals > Specialized Courts

• Supreme Court > Courts of Appeals > District Courts > Specialized Courts

How does an agent's authority affect the principal in a contract?

• An agent's authority has no impact on the principal in a contract.

• The principal can override the agent's authority at any time without consequences.

• An agent's authority only affects the agent, not the principal.

• An agent's authority binds the principal to the agent's actions in a contract.

What distinguishes a unilateral contract from a bilateral contract?

• A unilateral contract involves two parties making promises to each other, while a bilateral contract involves one party making a promise.

• A unilateral contract requires both parties to act, while a bilateral contract does not.

• A unilateral contract is always written, whereas a bilateral contract can be oral.

• A unilateral contract has one party making a promise for an act, while a bilateral contract involves mutual promises.

Name two types of contracts that are typically unenforceable.

• Contracts for the sale of goods

• Contracts involving illegal activities, contracts made by minors.

• Real estate purchase agreements

• Employment contracts

What role does the four corners doctrine play in contract interpretation?

• The four corners doctrine allows for external evidence in contract interpretation.

• The four corners doctrine applies only to contracts over a certain monetary value.

• The four corners doctrine limits contract interpretation to the text of the contract itself.

• The four corners doctrine requires contracts to be verbal rather than written.