Business Law Chapter Review Paper
Course: MAN 224: Business Law
College: California College San Diego
Instructor: Mr. Henry Rau
Student: Mr. Tyrell Wilson
Subject: Week 2: Assignment 2: Chapter Review Questions: 5 thru 13
Due Date: February 5, 2015 @ 11:59 PM
I. Chapter 5: Nature and Classes of Contracts
1. Why are contract so important to business?
Answer: Contracts are extremely important in business because they form the very foundation upon which all modern business rests.
2. Name the five requirements of a valid contract.
Answer: The parties to do or not do a specific thing must base it on a mutual agreement. Parties who are competent to enter into a contract that will be enforceable against both parties must make it. The promise or obligation of each party must be supported by consideration. It must de for a lawful purpose the contract must not be illegal such as the unauthorized buying and selling of narcotics. The contract must meet certain formal requirements such as being in writing or under seal. …show more content…
How does the subject matter of a contract normally distinguish it from unenforceable agreements?
Answer: An agreement with no legal effect is void. A void agreement sometimes called a void contract must be distinguished from an unenforceable contract. An agreement not enforceable in a court of law does not come within the definition of a contract.
4. How does a voidable contract differ from a valid contract?
Answer: Voidable contracts are an enforceable agreement, but because of circumstances or the capacity of a party, one or both parties may set aside. Valid contracts are an agreement that courts will enforce against all parties.
5. What two items must be expressed in order to have an express contract?
Answer: Express contract the parties express their intentions by words, whether in writing or orally, at the time they make the argument. Both their intention to contact and the terms of the agreement are expressly stated or
College: California College San Diego
Instructor: Mr. Henry Rau
Student: Mr. Tyrell Wilson
Subject: Week 2: Assignment 2: Chapter Review Questions: 5 thru 13
Due Date: February 5, 2015 @ 11:59 PM
I. Chapter 5: Nature and Classes of Contracts
1. Why are contract so important to business?
Answer: Contracts are extremely important in business because they form the very foundation upon which all modern business rests.
2. Name the five requirements of a valid contract.
Answer: The parties to do or not do a specific thing must base it on a mutual agreement. Parties who are competent to enter into a contract that will be enforceable against both parties must make it. The promise or obligation of each party must be supported by consideration. It must de for a lawful purpose the contract must not be illegal such as the unauthorized buying and selling of narcotics. The contract must meet certain formal requirements such as being in writing or under seal. …show more content…
How does the subject matter of a contract normally distinguish it from unenforceable agreements?
Answer: An agreement with no legal effect is void. A void agreement sometimes called a void contract must be distinguished from an unenforceable contract. An agreement not enforceable in a court of law does not come within the definition of a contract.
4. How does a voidable contract differ from a valid contract?
Answer: Voidable contracts are an enforceable agreement, but because of circumstances or the capacity of a party, one or both parties may set aside. Valid contracts are an agreement that courts will enforce against all parties.
5. What two items must be expressed in order to have an express contract?
Answer: Express contract the parties express their intentions by words, whether in writing or orally, at the time they make the argument. Both their intention to contact and the terms of the agreement are expressly stated or