Elements of Contractual Agreements Quiz

Negotiation is not an essential element of a contract; essential elements include offer, acceptance, consideration, and intention to create legal relations.

An offer is the manifestation of a willingness to enter into a legally binding agreement on specified terms.

An express contract is one where the terms are explicitly stated, either orally or in writing, between the parties.

An implied contract is one where the agreement of the parties is inferred from their conduct, rather than being explicitly stated.

An offeror is the party who makes an offer to enter into a contract with another party, the offeree.

Consideration is something of value exchanged by the parties to a contract, often a promise for a promise or a promise for an act.

Capacity refers to the legal ability of parties to enter into contracts; minors and mentally incapacitated individuals may lack capacity.

The 'meeting of the minds' refers to the mutual agreement between parties regarding the terms of the contract.

In a unilateral contract, one party makes a promise that the other party can accept only by doing something. In a bilateral contract, both parties exchange promises.

A voidable contract is one that is valid and enforceable but can be canceled or annulled by one or more parties.

An executed contract is one where all parties have fulfilled their obligations, while an executory contract still has obligations pending.

Promissory estoppel allows enforcement of promises made without consideration if it would be unjust to allow the promisor to renege on the promise.

The statute of frauds requires certain types of contracts, such as those involving real estate or goods over a certain value, to be in writing to be enforceable.

The doctrine of frustration applies when unforeseen events make performance of a contract impossible, illegal, or radically different from what was intended.

The parol evidence rule prohibits the use of extrinsic evidence to contradict, modify, or add to the terms of a written contract.

The mailbox rule states that an acceptance sent by mail or similar means becomes effective when it is dispatched, not when it is received by the offeror.

A condition is a vital term of a contract, breach of which entitles the innocent party to repudiate the contract, while a warranty is a less important term, breach of which only entitles the innocent party to damages.