Legal Aspects of Contracts and Agreements Quiz

All essential elements including offer, acceptance, consideration, and intention to create legal relations are required for a contract to be legally binding.

Consideration refers to something of value exchanged between parties to a contract, typically a promise for a promise or a promise for performance.

Capacity in contract law refers to the mental and legal ability of parties to understand the terms of a contract and to enter into a legally binding agreement.

Intent is not a formal element of a contract; essential elements include offer, acceptance, consideration, and legality of purpose.

Consideration is the value exchanged between parties to a contract; it can be a promise, performance, or forbearance in exchange for something of value.

Unilateral contract involves one promise in exchange for an action, whereas bilateral contract involves promises from both parties.

The Statute of Frauds mandates certain contracts, like those involving real estate or lasting longer than one year, to be in writing to be enforceable.

Remedy is not a valid defense to a breach of contract; defenses may include lack of capacity, illegality, or mistake.

'Void' contracts are valid but can be canceled by one of the parties, whereas 'voidable' contracts are not enforceable due to certain circumstances.

'Express' contracts have explicitly stated terms, while 'implied' contracts derive from the actions or conduct of the parties.

Privity of contract dictates that only those who are parties to a contract can enforce its terms and benefit from its obligations.

The parol evidence rule permits parties to present oral evidence to clarify or supplement terms in a written contract, but not to contradict them.

Frustration of purpose occurs when an unforeseen event makes it impossible or significantly changes the purpose of the contract, rendering performance substantially different from what was originally intended.

Quantum meruit is a legal principle that entitles a party to recover the reasonable value of services performed or goods provided under an implied contract.

The doctrine of substantial performance permits enforcement of a contract if the essential purpose has been fulfilled, despite minor defects or omissions in performance.