Understanding Contracts

What is a contract?

• A contract is a suggestion for future actions.

• A contract is a verbal agreement.

• A contract is a legally binding agreement.

• A contract is a type of legal document that is not enforceable.

What are the essential elements of a valid contract?

• Proposal, discussion, intent, enforceability

• Agreement, negotiation, signature, verbal consent

• Terms, conditions, witness, written form

• Offer, acceptance, consideration, mutual consent, lawful purpose

What is the difference between a unilateral and bilateral contract?

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

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

• A unilateral contract requires two parties to agree on a price, while a bilateral contract does not involve any promises.

• A unilateral contract involves multiple parties making promises, while a bilateral contract is between a single party and a group.

What does 'consideration' mean in contract law?

• Consideration refers to the duration of a contract.

• Consideration is something of value exchanged between parties in a contract.

• Consideration is a legal term for a written contract.

• Consideration is the signature of the parties involved.

What is meant by 'capacity to contract'?

• The legal ability to enter into a binding contract.

• The necessity of written documentation for all contracts.

• The ability to negotiate terms of a contract.

• The requirement to have a witness for a contract.

What are the different types of contracts?

• Conditional, Temporary, Non-binding

• Standard, Custom, Fixed

• Written, Oral, Digital

• Bilateral, Unilateral, Express, Implied, Valid, Void, Voidable, Executed, Executory

What is the purpose of a breach of contract?

• To provide remedies to the aggrieved party and ensure accountability.

• To punish the breaching party without compensation.

• To create new obligations for both parties involved.

• To allow the aggrieved party to ignore the contract entirely.

What remedies are available for breach of contract?

• Specific performance, damages, rescission.

• Injunctions

• Monetary rewards

• Public apology

What is an enforceable contract?

• An agreement that requires no signatures to be valid.

• A contract that can be ignored by either party.

• An enforceable contract is a legally binding agreement that can be upheld in court.

• A verbal agreement that is not legally binding.

How can a contract be terminated?

• A contract can be terminated only by a court order.

• A contract can be terminated by mutual agreement, fulfillment, breach, expiration, or notice.

• A contract can be terminated by signing a new contract.

• A contract can be terminated by one party without notice.