Contracts Basics Flashcards
Contract Elements
A contracts is a promise or set of promises enforced by law
Mutual Assent
“Meeting of the minds” - Demonstrated by an offer and a valid acceptance
Consideration
A bargained for exchange of legal value between the parties
No defenses to K formation
No defenses to formation exist that would invalidate the K
Types of K
Bilateral, Unilateral, and Quasi
Bilateral K
Exchange of mutual promises. Each party is a promisor & a promisee
Unilateral K
Offer requires performance as the manner of acceptance. Offeror-promisor agrees to pay upon the completion of the act requested by the promisee; once the act is done, K is formed
Quasi K
No a K, but rather a restitution remedy designed to prevent unjust enrichment; usually arises when there is an unenforceable agreement, but one side has realized a benefit
Void
K never had any legal effect
Voidable
one or both parties may elect to void the K
Unenforceable
otherwise valid K that is unenforceable because a defense applies, such as duress, illegality, or incapacity, or SoF
Applicable Law
UCC - Sale of goods
Common Law - Services or Land
Mixed - Predominate controls, unless the K breaks it down by Goods and Services/Land
