Principles of Contract Formation and Types Quiz

Written agreement is not always required for a valid contract, as verbal contracts can also be enforceable.

A unilateral contract involves a promise in exchange for an act, such as offering a reward for finding a lost dog.

An offer is a clear indication of willingness to enter into a contract under specific terms.

A contract can be voidable if it lacks capacity, involves fraud, duress, or undue influence.

The mirror image rule states that acceptance must exactly match the terms of the offer for a contract to be formed.

The statute of frauds requires certain contracts to be in writing to prevent deception or false claims.

A contract to engage in an illegal activity is void and unenforceable by law.

Void contracts are considered invalid ab initio, while voidable contracts can be affirmed or rejected by a party.

Promissory estoppel is a legal principle preventing a party from going back on a promise to avoid injustice.

An unconscionable contract can be avoided by the party subjected to unfair terms.

Express contracts are directly stated by the parties, while implied contracts are inferred from their actions or conduct.

Frustration of purpose can discharge a contract if its fundamental purpose becomes impossible or radically different.