Lawyer Contract Law

Question 1

What three elements are required to form a valid contract under common law?

Accepted Answer

Offer, acceptance, and consideration

Answer

Agreement, capacity, and a written document

Answer

Offer, signature, and exchange of money

Answer

Proposal, mutual assent, and notarization

Question 2

What is 'consideration' in contract law?

Accepted Answer

A bargained-for exchange where each party gives something of legal value

Answer

The price agreed upon in any commercial transaction

Answer

The written terms of a contract signed by both parties

Answer

A judge's approval of the contract's fairness

Question 3

Under the Statute of Frauds, which type of contract must be in writing to be enforceable?

Accepted Answer

Contracts for the sale of real estate

Answer

All contracts worth more than $100

Answer

Employment contracts lasting more than one month

Answer

Any contract between two business entities

Question 4

What is 'promissory estoppel' and when does it allow enforcement of a promise without consideration?

Accepted Answer

When a party reasonably relies on a promise to their detriment, the promisor is estopped from denying the promise

Answer

When a contract lacks a required signature but both parties performed

Answer

When a court finds an implied duty of good faith in commercial dealings

Answer

When a written agreement omits standard terms assumed by the parties

Question 5

What is the 'mirror image rule' in common law contract formation?

Accepted Answer

An acceptance must match the offer exactly; any change creates a counteroffer

Answer

Both parties must sign identical copies of the contract

Answer

The price offered must equal the fair market value of the subject matter

Answer

Contract terms apply equally to both parties symmetrically

Question 6

What remedies are available for breach of contract under US common law?

Accepted Answer

Expectation damages, reliance damages, restitution, and specific performance

Answer

Only monetary damages equivalent to the contract price

Answer

Criminal penalties and civil fines in commercial cases

Answer

Automatic rescission and return to pre-contract status