About This Chapter
Praxis Business Education: Contract Law - Chapter Summary
Let us help you review the definitions of law terms and better understand the differences between the various types of contracts, in preparation for the Praxis Business Education exam. This chapter's video lessons address the following topics:
- Contract law types and definitions
- Contract parties: promisees, promisors and beneficiaries
- Objective standard and mutual assent
- Offers in contract law
- Terminations of offers
- Acceptances in contract law
- Sources: Uniform Commercial Code and common law
Follow each motivating lesson by completing the quick quiz. Revisit any topics that might still need your attention.
Praxis Business Education: Contract Law Objectives
You'll answer questions pertaining to contract law concepts in the 15% of your exam that addresses law and international business, which is about 18 of the 120 test questions. In addition to contract law, you should be prepared to demonstrate mastery of the following objectives for this portion of the test:
- Foundations, role and impact of international business
- Environment of international business: cultural, social, political, economic and legal factors
- Trade relations: trade barriers, imports/exports, balance of trade and trade agreements
- Consumer law
- Computer law: privacy/security, intellectual property and copyright
- U.S. court system
Use these video lessons and quizzes to review all aspects of contract law, in addition to other topics concerning law and international business included on the Praxis.
1. Contract Law Terms: Definitions & Contract Types
A contract is an agreement between two or more parties to perform a service, provide a product or commit to an act and is enforceable by law. There are several types of contracts, and each have specific terms and conditions.
2. Parties to a Contract: Promisor, Promisee & Beneficiary
There are at least two parties involved in a contract: the promisor, promisee and, sometimes, a third party beneficiary may be named. Each party has a different obligation to the contract terms. The beneficiary in a contract generally does not have the same level of responsibility for the contract's performance.
3. Mutual Assent & Objective Standard in Contract Law: Definitions & Examples
Mutual assent is considered the meeting of the minds between two or more parties that forms the foundation of a contract. At the time of mutual assent, it can be said that a legally binding contract exists.
4. What Is an Offer in Contract Law?
In contract law, an offer is a promise in exchange for performance by another party. An offer can be revoked or terminated under certain conditions. There are also times when an offer can be negotiated to create a counter-offer.
5. Termination of an Offer in Contract Law: Methods & Examples
There are several ways in which a contract can be terminated, including performance, impossibility of performance and breach of contract. Other ways to end a contractual agreement are a bit more complicated and involve a prior commitment on the part of one or both of the parties or even revocation.
6. What Is Acceptance in Contract Law? - Definition, Rules & Examples
There are essentially six elements in a contract. Once an offer is made, the next element is acceptance. Offer and acceptance combined with consideration make for the glue that creates a binding contract.
7. Sources of Contract Law: Common Law & Uniform Commercial Code
There are two sources of contract law: common law, which is based on case rulings, and statutory law, which is based on federal and state statutes. Contract law uses both common law and a set of statutory rules known as the Uniform Commercial Code.
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Other chapters within the Praxis Business Education - Content Knowledge (5101): Practice & Study Guide course
- Praxis Business: Accounting
- Praxis Business: Personal Finance
- Praxis Business: Business Finance
- Praxis Business: Foundations of Communication
- Praxis Business: Written & Oral Communication
- Praxis Business: Employment Communication & Career Research
- Praxis Business: Economic Allocation of Resources
- Praxis Business: Economic Systems & Market Structures
- Praxis Business: Role of the Government in Economics
- Praxis Business: Economic Indicators of Growth
- Praxis Business: Entrepreneurship
- Praxis Business: Information Technology Operations and Concepts
- Praxis Business: Technology Tools
- Praxis Business: Computer Applications
- Praxis Business: Programming & Design
- Praxis Business: Foundations of International Business
- Praxis Business: International Business Environment
- Praxis Business: Consumer & Computer Law
- Praxis Business: US Court System
- Praxis Business: Marketing
- Praxis Business: Management
- Praxis: Professional Business Education
- Praxis Business Education: Content Knowledge Flashcards