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Unformatted text preview: Doug Jackson Business Law Section 8 Chapter 9 Study Questions April 17, 2006 Chapter 9 Study Questions 1.) Not by the personal or subjective intent, or belief of a party. The theory is that a party’s intention to enter into a legally binding agreement, or contract, is judged by outward, objective facts as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions. 2.) Every contract involves at least two parties. The offeror is the party making the offer. The offeree is the party to whom the offer is made. Whether the contract is classified as unilateral or bilateral depends on what the offeree must do to accept the offer and to bind the offeror to a contract. Bilateral contract is a promise for a promise. The contract comes into existence at the moment the promises are exchanged. A unilateral contract, in contrast, the offer is phrased so that the offeree can accept the offer only by completing the contract performance. Hence, a unilateral contract is a promise for an act. 3) In an express contract, the terms of the agreement are fully and explicitly stated in words, oral or written. A signed lease for an apartment or a house is an expressed written contract. A contract that is implied from the conduct of the parties is called an implied-in-fact contract or an implied contract. This type of contract differs from an express contract in that the conduct of the parties, rather than their words, creates and defines the terms of contract.parties, rather than their words, creates and defines the terms of contract....
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- Spring '12
- Business Law, Doug Jackson