26. Provide examples of typical offers and acceptances.

27. Parties to a contract must have a clear understanding of what they are undertaking a meeting of the minds. Provide an example of two parties who have reached such a clear understanding.

Chapter 7 Introduction to Contracts

28. Provide an example of a contracting party offering consideration by doing something

that he or she is not legally required to do.

29. The law requires that the parties be competent to enter into a contract. Give an example of a party who lacks competence.

30. The law requires that the purpose of a contract must be legal. Provide an example of a contract that would not be enforceable because it lacks legality of purpose.

31. Provide an example of an agreement that would need to be in writing to be enforceable.

32. Competent Parties The law allows a minor to withdraw from a contract simply because he or she is a minor, whereas the other party is bound if the minor wishes to carry out the contract. Do you think the law is fair in such instances?

33. Implied Contracts Certain business and personal transactions are neither oral nor written but are nevertheless legally binding. The terms of these agreements are understood from the actions or conduct of the parties, from the customs of the trade, or from the conditions or circumstances rather than from oral or written words. Do you think implied contracts should be enforceable?

34. Legality of Purpose Some contracts freely entered into by the parties involve activities that have been made illegal by state or federal statutes. Because they are illegal, these contracts are unenforceable. Examples are wagering agreements or lending money at high rates of interest (usury). Do you believe that legislatures should interfere with the free will of contracting parties?

35. Proper Form For many years the law has required that certain kinds of contracts, such as those involving $500 or more, be in writing to be enforceable. Should the amount of $500 be increased to reflect the effects of inflation?

36. A Question of Ethics Do you think it is unethical for an underage person who looks much older to enter into a contract with another person who in good faith expects the underage party to fulfill the terms of the contracts?