ch.14 Flashcards
(27 cards)
What is a contract?
A set of legally enforceable promises
What are the elements required for contract formation:
- agreement
- consideration
- contractual capacity
- legal object
- defenses to contract enforcement
What is an agreement?
offer and acceptance
What is a consideration?
value given by both parties
What is contractual capacity
legal ability to enter into a binding agreement
What is a legal object
contract cannot be illegal or against public policy
What are the two defenses to contract enforcement?
- Lack of genuine assent
- Lack of proper form
When should contracts be interpreted to give effect to parties’ intentions?
At the time they
entered into contract.
If multiple interpretations are possible, which one should be adopted.
The interpretation that would make the contract lawful, operative, definite, reasonable, and capable of being carried out
If contract contains ambiguity, how should the judge interpret it?
judge should interpret it against the interests of drafter.
Do handwritten provisions prevail over preprinted terms?
yes
Do numerals prevail over numbers written in words?
No
(it’s the opposite)
Do specific terms prevail over general terms?
yes
How are technical words generally interpreted?
In accordance with industry standard
What are the two things an agreement require?
- Valid offer
- Valid acceptance
Does preliminary negotiations constitute offers?
No
Advertisements for the offeror’s intent to bound are generally not offered, but
may be offers with certain conditions met
Give an example of a definite and certain term?
Price, parties, quality, quantity, subject matter
What are the 2 main elements of a valid offer?
- Definite and certain terms
- Communication of offer to offeree (or offeree’s agent)
Reasons for terminating an offer includes:
- revocation
- death/incapacity
- counteroffer
- rejection
- subsequent illegality
-Lapse of time - Failure of condition
Revocation and Death/incapacity is a
A. Offeree issue
B. Offeror issue
C. Subject matter issue
B. Offeror issue
Destruction and subsequent illegality is a
A. Offeree issue
B. Offeror issue
C. Subject matter issue
C. Subject matter issue
Rejection and counteroffer is a
A. Offeree issue
B. Offeror issue
C. Subject matter issue
A. Offeree issue
What is an auction with reserve?
Seller merely expresses intent to receive offers
