Understanding Contract Law

What are the four essential elements of a contract?

• Offer, Acceptance, Consideration, Mutual Intent

• Proposal, Rejection, Payment, Agreement

• Negotiation, Confirmation, Obligation, Consent

• Terms, Conditions, Signature, Breach

Name two types of contracts based on their enforceability.

• Valid contract, Void contract

• Legal contract

• Breach of contract

• Unenforceable contract

What is the difference between a unilateral and a bilateral contract?

• A unilateral contract involves a promise for a promise, while a bilateral contract is based on a single act.

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

• A unilateral contract requires two parties to agree on terms, while a bilateral contract is a one-sided agreement.

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

Explain the concept of offer in contract formation.

• An offer is a statement made by a party that cannot be revoked once made.

• An offer is a request for information about a potential contract.

• An offer is a legally binding agreement that requires no acceptance.

• An offer is a proposal made by one party to another indicating a willingness to enter into a contract.

What is required for an acceptance to be valid?

• Vague communication of acceptance

• Clear communication of acceptance, capacity to accept, correspondence to an open offer, and unconditional terms.

• Acceptance based on verbal agreement only

• Acceptance without knowledge of the offer

Define consideration in the context of a contract.

• Consideration is the signature of the parties on the contract.

• Consideration is the legal age of the parties involved.

• Consideration is the value exchanged between parties in a contract.

• Consideration refers to the duration of the contract.

What is the significance of capacity in contract law?

• All parties must be of the same age to have capacity in contracts.

• Capacity is significant in contract law as it determines the validity of a contract based on the parties' ability to understand and agree to its terms.

• Capacity only applies to written contracts, not verbal ones.

• Capacity is irrelevant in determining contract validity.

List three types of contracts based on their form.

• Digital contracts

• Written contracts, Oral contracts, Implied contracts

• Formal agreements

• Verbal agreements

What does it mean for a contract to be voidable?

• A contract that can be affirmed or rejected by one party.

• A contract that is automatically invalid from the start.

• A contract that has no legal effect under any circumstances.

• A contract that can only be enforced by both parties.

How can a contract be terminated before its completion?

• A contract can be terminated by mutual agreement, breach, expiration, or termination clause.

• By increasing the contract price

• By selling the contract to a third party

• By ignoring the terms of the contract