Exam 7: Nature and Terminology

Susan enters into a contract with Troy to act as his personal sports trainer. If a dispute later arises and the contract contains unclear terms, the rules of contract interpretation will give effect to

All contracts include an implied covenant of good faith and fair dealing.

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Hillside sends a written copy of the agreement to Greg to be signed. If Greg signs the copy, the parties will have

Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.

Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have

An offeree is a person who makes an offer.

In contract law, intent is determined by the secret, subjective intent, or belief, of a party.

If a contract term is ambiguous, a court can consider outside evidence.

When a rainstorm erupts outside Rita's Gift Shop, Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

The person who makes a promise is the promisee.

One of the requirements of a valid contract is an adequate price.

In an express contract, the terms are fully and explicitly stated in words.

An implied contract is not an actual contract.

Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include

If a voidable contract is ratified, the parties must fully perform their respective legal obligations.

The only requirement of a valid contract is that it be voluntarily entered into.

Pavers, Inc., contracts with a QuikStop store to repave the store's parking lot for a certain price. The requirements of this, and any other, contract include

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

The term consideration refers to the regard that contracting parties hold for each other.