
ANSWER KEY Part 2 Contract Law
Chapter 7 The Essentials of Contract Law
Opening Case Questions
1. The four elements of a contract are mutual assent, consideration, capacity, and legality. Because
2. Eventually, in this case, the court ruled that enforcement of the contract will be based on
promissory estoppel. This means that, even though no contract actually existed between Vulcan and
Janke, the court will force Vulcan to live up to its promises. Once this is decided, the writing argument
3. As noted above, the argument raised by Janke is promissory estoppel. According to promissory
estoppel, when one party makes a promise to the other party, and the second party relies on that
4. The courts are clear that the objective of contract law is rehabilitation. This means that the courts
will place an innocent party, Janke in this case, back into just as good a position as it would have been
5. Incidental damages are those that are paid by the breaching party to make up for any expenses