Lawyer Contract Law 1

Question 1

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

Accepted Answer

Offer, acceptance, and consideration

Answer

A binding common law contract requires a valid offer, unequivocal acceptance of that offer, and legally sufficient consideration from each party.

Question 2

What is 'consideration' in contract law?

Accepted Answer

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

Answer

Consideration is a bargained-for legal detriment or benefit — each party must give up something of legal value in exchange for the other's promise.

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

The Statute of Frauds requires contracts for the sale of land to be in writing; other covered categories include contracts that cannot be performed within one year and contracts for goods over $500 (UCC).

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

Promissory estoppel enforces a promise despite lack of consideration when: a promise is made, reasonable reliance occurs, detriment results, and injustice can only be avoided by enforcement.

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

Under the mirror image rule, the acceptance must be the precise mirror of the offer; any deviation constitutes a rejection and counteroffer rather than an acceptance.

Lawyer Practice Test

Lawyer Practice Test

Lawyer Contract Law 1