Ch. 4.1-4.7 Contracts Flashcards Preview

CLEP - Intro to Business Law > Ch. 4.1-4.7 Contracts > Flashcards

Flashcards in Ch. 4.1-4.7 Contracts Deck (82)
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1

The ____________ of Contracts is a set of statements reflecting generally agreed upon pronouncements of common law contract rules.

Restatement

2

The Restatement defines a ________ as a "promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes a duty."

contract

3

Contract law is concerned with enforcing promises between ________, but only those promises that the law recognizes as enforceable.

parties

4

An _______ contract is a promise stated in words, either oral or written.

express

5

The UCC governs all transactions for the sale of _____, which is defined as all things that are movable at the time of the contract.

goods

6

An ________ contract is a promise that is inferred from a person's conduct or the circumstances of the transaction.

implied

7

A _______ is an undertaking or commitment to act or refrain from acting in a specified way in the future.

promise

8

When an exchange is entirely ___________ there is no contract because either party makes a promise to the other. Both parties have fully performed their obligation and no promises have been made. It is not a contract but is referred to as an _________ _______. If there is no immediate exchange, then a ______ has been formed.

instantaneous; executed exchange; contract

9

The person who makes a promise is the __________. The person to whom the promise is made is the ________.

promisor; promisee

10

When a promise or commitment will benefit someone other than the promisee - that person is referred to as a __________.

beneficiary

11

A _____-________ arises in the absence of a promise and thus is not a contract all all. It's a transaction that creates a basis for recovery to prevent _______ _____________ which means a situation where one person unfairly benefits from a transaction.

quasi-contract; unjust enrichment

12

An action to avoid unjust enrichment is referred to as ____________. Sometimes quasi-contracts are referred to as contracts that are ______-in-law.

restitution; implied

13

What's this an example of?
A, who is a doctor, is seated next to B at a restaurant. When B begins choking, A administers emergency treatment. In this case, there is no contract b/c there are no exchanged promises. A can seek to recover from B in an action for _______ ____________, based on the notion that B has unjustly benefited from the medical services performed by A and should be required to pay A. This is referred to as a ?

quasi-contract.

14

_____ ______ means that each part to the contract must manifest or reveal her intent to be bound to a given exchange. Some courts refer to this intent as a "meeting of the minds" to capture the notion that there must be mutual agreement about the exchange to be performed.

mutual assent

15

An _________ standard means that courts determine intent by analyzing how a reasonable person would construe the words and conduct of the parties, generally without considering words or actions an individual may have intended, but do not communicate.

objective standard

16

What are the two factors that must be shown in order to demonstrate mutual assent?
1. an ______ on the part of one party and
2. an ____________ on the part of the other.

offer; acceptance

17

The person making an offer is called the _______ and the person to whom the offer is made is the called the _______.

offeror; offeree

18

A preliminary negotiation is often referred to as a solicitation or ___________ to make an offer.

invitation

19

Once a party manifest her intent to _____ an offer, there is mutual assent and a contract can be formed. However, an offer may be ___________ prior to acceptance.

accept; terminated

20

If ther offeror indicates the offer must be accepted within a stated time. the offer will __________ once that time has passed.

terminate

21

If an offeror dies before an offer is accepted, the offer is ____________, even if the offeree is not aware of the death.

terminated

22

If an offeror is deemed to be ________ incompetent after an offer is made, then the offer is terminated, if acceptance has not occurred before the offeror is judged to be incompetent.

mentally

23

Once acceptance occurs, an offeror's death or mental incompetence [does/does not] negate the contract.

does not

24

An offeror's death or mental incompetence must occur ______ the offer is made, but prior to the acceptance, in order to impact the formation of the contract.

after

25

As a general rule, the offeror may terminate the offer any time prior to the offeree's acceptance - such action is referred to as __________.

revocation (it was revoked)

26

An offer may be revoked directly or indirectly. _______, the offeror can indicate by words that she no longer wishes to be bound by the offer. _________, an offer may be revoked when the offeror takes actions that are inconsistent with the intent to be bound and the offeree has knowledge of those actions.

directly; indirectly

27

Offers may not be revoked prior to termination in 3 circumstances:
a. if the offeree has paid to keep the offer open for some period of time - called an ______ contract
b. if the offeror has agreed to keep the offer open for some period of time, and the offeree has relied on that promise to her detriment, or
c. if the offeree has already begun performance under the contract called a ___________ contact.

option; unilateral

28

A ______________ is both a rejection of the original offer and a new officer, and thus serves to terminate the original offer. In this case the offeree turns into the ______.

counteroffer; offeror

29

The _____ _____ rule means that any response by the offeree that changed the terms of the agreement, however slightly, would be treated as a rejection.

mirror-image

30

An ___________ is effective as soon as it is dispatched, this is known as the ________ rule. It will be effective when it is mailed or emailed/faxed.

acceptance; mailbox