Business Law Tst 3 Flashcards
Contract
Legally enforceable agreement
4 parts of a contract
Agreement
Consideration
Capacity
Legality
Elements of offer and acceptance
Intent
Definite and certain terms
Communication
Unilateral Mistake
Doesn’t void contract
Mistake by one side
Mutual Mistake
Mistake by both sides on material fact of case.
Misrepresentation of law
Untruthful assertions by one of the parties about a material fact
Undue influence
Person in power takes advantage of one a relationship they have with another person (Dr. convincing patient to get surgery they don’t need.
Duress
Party is under pressure to accept deal. Gun to head
Promissory Estoppel
Party makes promise knowing the other party will rely on it.
Other party relies on promise
Promise is enforced to avoid injustice
Partial payment of debt
Depends on whether debt is liquidated or unliquidated. Partial payment of liquidated debt is not sufficient consideration for discharge. However partial payment of a unliquidated amount maybe.
Bilateral Contract
Promise for Promise
Unilateral contract
Promise for performance
Capacity
Legal ability to enter into contract. Individual is deemed to have mental ability to understand rights and obligations under contract.
(Minors and mentally incompetent)
Parental liability
Parents are not generally liable for children’s contracts. Maybe held liable for children’s actions under tort law.
Legality
Contract must be able to be oerfirmed legally. Otherwise it is void.