7-2 Classification of Contracts

What are the essential elements of a legally enforceable contract?

• Offer, acceptance, consideration, capacity, intention, and lawful purpose

• Offer, acceptance, consideration, and mutual mistake

• Offer, acceptance, coercion, and lawful purpose

• Offer, acceptance, misrepresentation, and capacity

How are contracts classified based on their formation?

• Valid vs. Voidable

• Express vs. Implied

• Bilateral vs. Unilateral

• Formal vs. Informal

Which of the following is an example of an express contract?

• A landlord and tenant agree on rent terms in writing

• An employee works without a written contract

• A person sits in a barber’s chair for a haircut

• A company reimburses a customer for an overpaid bill

What is an implied-in-law contract also known as?

• Unilateral contract

• Bilateral contract

• Formal contract

• Quasi-contract

What distinguishes a bilateral contract from a unilateral contract?

• Based on actions and conduct

• Specific form or method of creation

• One party performs an act to accept

• Mutual promises between parties

What is a characteristic of formal contracts?

• Do not require a specific form

• Are always written

• Require a specific form or method of creation

• Based on actions and conduct

What is the status of a contract that has yet to be fully performed?

• Unenforceable

• Voidable

• Executed

• Executory

What makes a contract voidable?

• Misrepresentation, coercion, or lack of capacity

• Illegal activities

• Failure to meet legal requirements

• Mutual mistake

What is an unenforceable contract?

• A contract that is always in writing

• A contract involving illegal activities

• An unlawful or prohibited agreement

• A valid contract that cannot be enforced due to a legal technicality

What legal principle prevents a party from breaking an agreement when the other party has relied on that promise?

• Misrepresentation

• Coercion

• Mutual mistake

• Promissory estoppel