5-13 Contracts Flashcards
1
Q
- legally enforceable agreement
- agreement between two or more competent persons which is enforceable by law
A
Contract
2
Q
A situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract
A
Breach of contract
3
Q
- a contract which will be enforced by the court
- contract enforceable by the law
A
Valid contract
4
Q
An agreement of no legal effect
A
Void contract
5
Q
- an agreement which is not in the form required by law, but can be made so by the parties
- an agreement which is not currently binding / enforceable by law but can be made so by the parties
A
Unenforceable contract
6
Q
A contract which would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties
A
Voidable contract
7
Q
- contract in which parties express their intentions, either orally or in writing, at the time of the agreement
- contract with terms of the agreement specified in words
A
Express contract
8
Q
contract with major terms implied by the parties’ conduct / act or implied / deduced from the facts
(2 names)
A
Implied contract
Implied in fact contract
9
Q
Those contracts which must be in a special form / manner of creation / produced in a certain way, such as under seal
A
Formal contract
10
Q
Obligation entered into before a court to do an act required by law
A
Recognizance
11
Q
Document of payment, such as a check
A
Negotiable instrument
12
Q
Contract that is not formal, whether written, oral, or implied
A
Simple contract
13
Q
Contract with terms in writing
A
Written contract
14
Q
Contract with terms spoken
A
Oral contract
15
Q
Contract in which terms have not been completely executed / carried out / fulfilled by the parties
A
Executory contracts
16
Q
Contracts in which the terms have been fulfilled / fully performed by the parties
A
Executed contracts
17
Q
A contract formed when an act is done in consideration for a promise
A
Unilateral contract
18
Q
A contract which consists of mutual exchange of promises to perform some future acts
A
Bilateral contract
19
Q
- implied (in law) contracts
- a fictional contract created or implied by a court for a person who is unable to contract for himself
- an obligation which law creates in the absence of agreement
- imposition of rights and obligations by law without a contract
- is invoked by courts where there is unjust enrichment
- the function of a quasi-contract is to raise an obligation in law where in fact the parties made no promises
A
Quasi contract
20
Q
One benefiting unfairly at another’s expense
A
Unjust enrichment
21
Q
- an expression of willingness of offer or to enter contractual agreement
- a proposal to make a contract
A
Offer
22
Q
The party who initiates, or makes, an offer
A
Offeror
23
Q
The person to whom an offer is made
A
Offeree
24
Q
Binding promise to hold an offer open
A
Option
25
Merchant’s signed, written offer to sell or purchase goods saying it will be held open
Firm offer
26
- an agreement to an offer resulting in a contract
- drawee’s signed agreement to pay draft
Acceptance
27
Refusal to accept
Rejection
28
- an intended acceptance which changes or qualifies an original offer and in effect, rejects that offer and becomes a new offer
- offeree’s response that rejects offer by varying terms of initial offer
Counteroffer
29
the necessity that the parties desiring to enter into contracts meet all requirements
Contractural capacity
30
The repudiation of, or election to avoid, a voidable contract
Disaffirmance
31
- those persons under full legal age
- person under legal age to contract
- by most states (but not all) the standard is under the age of 18
Minor
32
items, required or proper and useful, for sustaining a human being at an appropriate / reasonable living standard (ex: food, clothing, shelter)
Necessaries
33
Person found guilty by a court of a major criminal offense
Convict
34
Persons who are under the influence of alcohol to the extent that their judgment may be impaired
Intoxication
35
Persons who are afflicted with a serious mental disorder impairing their ability to function
Insane
36
- approval of unauthorized act
- confirming an act which was executed without authority or an act which was voidable
- adult indicating contract made while a minor is binding
Rafitication
37
What a promisor demands / requires from another party and receives as a price for a promise
Consideration
38
When all of multiple creditors settle in full for a fraction of the amount owed
Composition of creditors
39
Refraining from doing something
Forbearance
40
An agreement made and executed in satisfaction of the rights one has from a previous contract
Accord and satisfaction
41
- an equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment
- substitute for consideration when another acts in reliance on promisor’s promise
Promissory estoppel
42
Mistake by one party to a contract
Unilateral mistake
43
Mistake by both parties to a contract
Mutual mistake
44
Willful failure to disclose pertinent information
Concealment
45
Stating an untrue fact / false statement of a material fact
Misrepresentation
46
False statement made in belief it is true / without any intention to deceive
Innocent misrepresentation
47
Party engages in action that causes the fraud
Active fraud
48
Fraud caused by failure to disclose information when there is a duty to do so
Passive fraud
49
Defrauded party DID NOT INTEND to enter into a contract but false statement made by other party induced contract signing
Fraud in the execution
50
Defrauded party INTENDED to make a contract but false statements were made about the terms or in obligations of the contract
Fraud in the inducement
51
Judicial correction of a contract
Reformation
52
To set a contract aside or cancel
Rescind (is to END)
53
A relationship of trust and confidence, such as that which exists between partners in a partnership
Fiduciary
54
A means of removing one’s free will, obtaining consent by means of a threat (to do harm to the person, his family, property, or earning power)
Duress
55
- person in special relationship causing another’s action contrary to free will
- improper influence that is asserted by one dominant person over another, without the threat of harm
Undue influence
56
Agreement in which the parties win or lose, based on chance
Gambling contract
57
Exceeding the maximum rate of interest which may be charged on loans
Usurious contract
58
Charging higher interest rate than law allows
Usury
59
Higher legal rate of interest allowed
Maximum contract rate
60
Interest rate applied according to statute when no rate specified and interest is to be paid
Legal rate of interest
61
Contract with terms in writing
Written contract
62
Obligation to pay in money or goods
Debt
63
Breach of contractual obligation other than money
Default
64
All payments on an instrument fully made and not all made by due date
Uncured default
65
Oral testimony
Parol evidence
66
Complete, written contract may not be modified by oral testimony unless upon evidence of fraud, accident, or mistake
Parol evidence rule
67
- law requiring certain contracts to be in writing in order to be binding or enforceable
- statute originally enacted by English Parliament, and no enacted in some form in all the American states, listing certain types of contracts which could only be enforced if in written form
Statute of Frauds
68
A person not party to a contract, but whom parties intend to benefit
Third-party beneficiary
69
- a person who is NOT A PARTY to a contract to whom the promisor of a contract OWES an obligation or duty
- the person to whom the promisee of a contract OWES an obligation or duty which will be discharged to the extent that the promisor performs the promise
Creditor beneficiary
70
A third-party beneficiary to whom no legal duty is owed and for whom performance is a gift
Donee beneficiary
71
Person who unintentionally benefits from performance of contract
Incidental beneficiary
72
Two or more people INDIVIDUALLY agree to perform obligation
Several contract
73
Contract obligating or entitling two or more people together to performance under the contract
Joint contract
74
Transfer of duties from one person to another
Delegation
75
Two or more people bound jointly and individually by contract and who are entitled to recover individually and as a unit
Joint and several contract
76
- the CHANGE of one of the PARTIES to a contract at the mutual agreement of the original parties
- termination of a contract and SUBSTITUTION of NEW CONTRACT with same terms but a NEW PARTY
- the substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it
Novation
77
- transfer to another of tenant’s rights
- conveyance of personal property rights in a contract to a person not a party
- a means whereby one party in a contract conveys rights to another person, who is not a party to the original contract
Assignment
78
The party making the assignment
Assignor
79
- the party to whom the assignment is made
- person to whom contract rights are assigned
Assignee
80
Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law
Discharge
81
Offer to perform in satisfaction of terms as specified in contract
Tender of performance
82
Offer and ability to pay money owed as specified by contract
Tender of payment
83
Any form of lawful money
Legal tender
84
- a law that restricts the period of TIME within which an action may be brought to court
- time within which right to sue must be exercised or lost
Statute of limitations
85
Contract provision excusing performance when extraordinary event occurs
Force majeure clause
86
One party announces intention not to perform a contract prior to time to perform
Anticipatory breach
87
- a token award (generally $1.00) to symbolize vindication of the wrong done to the plaintiff
- small amount awarded when there is technical breach but no injury
Nominal damages
88
- an award paid to the injured party to cover the exact amount of their loss, but no more
- compensation amount equal to the loss sustained
Compensatory damages
89
An award paid to the plaintiff to punish the defendant in excess of those required to compensate the plaintiff for the wrong done
Punitive damages
90
Sum fixed / stipulated in a contract to be paid in the event one party breaches the contract, where actual damages are difficult to measure
Liquidated damages
91
- a contract remedy by which the court requires the breaching party to perform the contract
- carrying out the terms of a contract
Specific performance
