What type of contract is an agreement between parties in which each promises to deliver a performance in exchange for the other quizlet?

Prof. Ketron's contracts class restatements from his slides.

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What type of contract is an agreement between parties in which each promises to deliver a performance in exchange for the other?
What is the type of contract in which both parties promise to do something?
In which type of contract is the promise of one party given in exchange for the promise of the other party?
What is the type of contract in which only one party promises to do something?

Terms in this set (77)

Agreements and negotiations prior to or contemporaneous with the adoption of a writing are admissible in evidence to establish
(a) that the writing is or is not an integrated agreement;
(b) that the integrated agreement, if any, is completely or partially integrated;
(c) the meaning of the writing, whether or not integrated;
(d) illegality, fraud, duress, mistake, lack of consideration, or other invalidating cause;
(e) ground for granting or denying rescission, reformation, specific performance, or other remedy.

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No. The parties did not form a contract. A revocable offer terminates immediately when the offeror notifies the offeree that the offer has been revoked. Once an offer is terminated, it may no longer be accepted. One type of irrevocable offer is an option contract, i.e., when an offeror keeps an offer open for a limited time in exchange for the offeree giving something of value. Essentially, the offeree provides consideration in exchange for the irrevocability of the offer.

Here, the man originally said the offer was irrevocable, but the woman gave no consideration for the promise to keep the offer open. Without consideration, no option contract was formed. The offer thus was revocable, and it terminated immediately when the man communicated the revocation to the woman on May 28. Once the offer was terminated, the woman could no longer accept it. Thus, the parties did not form a contract.

No. The acceptance was not effective. Under the mailbox rule, acceptance by promise occurs when a properly addressed and stamped letter accepting an offer is deposited in the mail. This applies regardless of when or whether the offeror receives the acceptance. However, if an offeree first mails a rejection of the offer and then has a change of mind and mails an acceptance, the mailbox rule does not apply, and whichever letter the offeror receives first will determine whether the parties have a contract.

Here, the offeree first rejected the offer and then decided to accept. Because the offeree mailed the rejection first, the mailbox rule did not apply, and the first letter to reach the offeror determined whether the parties had a contract. The rejection arrived first, so it terminated the offer. Thus, because the acceptance arrived after the offer had been terminated, it was not effective.

Yes. The renewal option was too indefinite to be enforced. If parties defer agreement on a material contract term to some future time, the parties have not yet concluded a contract. In a lease renewal, the rental price is often a material term. If the renewal agreement does not contain a price term, the agreement will be too indefinite unless it (1) contains an objective formula or method for determining rent or (2) states that the rent determination is contingent on an objective extrinsic event, condition, or standard.

Here, the renewal option contained no rental price. The parties provided no formula to calculate the rent at a future time, nor did they state that rent was to be determined contingent on an event, condition, or standard. Rather, they simply left the rent to future negotiation. Thus, because the parties deferred agreement on a material term, they did not conclude a contract.

No. The lawyer is not correct, because quitting smoking is considered a detriment to the man for consideration purposes. A promisee furnishes consideration by incurring a legal detriment in exchange for the consideration to be received from the promisor. In the context of consideration doctrine, "detriment" does not have the common meaning of harm, injury, or prejudice. Rather, detriment has the technical meaning of giving up a legal right.

Here, the man had the legal right to smoke. His aunt's promise to pay him $5,000 induced him to stop smoking. Because the man gave up his legal right to smoke, quitting smoking was a detriment to the man for consideration purposes, even if it ultimately benefited his health. Thus, the man giving up smoking constitutes consideration for the aunt's promise, and the lawyer's argument is incorrect.

What type of contract is an agreement between parties in which each promises to deliver a performance in exchange for the other?

A bilateral contract is a binding agreement between two parties where both exchange promises to perform and fulfill one side of a bargain.

What is the type of contract in which both parties promise to do something?

The bilateral contract is the most common kind of binding agreement. Each party is both an obligor (a person who is bound to another) to its own promise, and an obligee (a person to whom another is obligated or bound) on the other party's promise.

In which type of contract is the promise of one party given in exchange for the promise of the other party?

A contract where the parties exchange a promise for a promise is known as a Bilateral Contract, whereas a contract where one party gives a promise and the other party performs an act is known as a Unilateral Contract.

What is the type of contract in which only one party promises to do something?

A Unilateral contract is an agreement with only one promise. That is, one party promises a future action if the other party performs whatever is requested of her.