Legal Principles in Contractual Relationships Quiz

Consideration is something of value exchanged between parties to a contract.

Capacity refers to the legal ability of an individual to enter into a contract.

Consideration is something of value exchanged between parties to a contract.

Moral obligation is not considered valid consideration in a contract.

The doctrine of frustration allows contract termination if unforeseen circumstances make performance impossible.

A valid offer does not require immediate acceptance.

Duress refers to using threats or coercion to force someone into a contract.

Silence amounts to acceptance only if the offeror has explicitly stated so.

Privity of contract means that only those who are parties to a contract can enforce its terms.

Promissory estoppel allows enforcement of a promise made without consideration to prevent injustice.

The parole evidence rule prohibits the use of oral evidence to contradict written contract terms.

A unilateral contract involves one party making a promise, while a bilateral contract involves promises from both parties.

Caveat emptor means 'buyer beware' and states that buyers must inspect goods before purchase.

Unconscionability allows the court to refuse to enforce unfair contract terms.

A contract may be voidable if one party has made a serious mistake that affects the agreement.

The mailbox rule states that acceptance is effective upon dispatch by the offeree.

A contract may be void if its subject matter is illegal.

Estoppel prevents a party from denying the truth of a statement relied upon by another party.

Specific performance requires parties to fulfill their contractual obligations as agreed.