Chapter 10 Flashcards
(45 cards)
Contract
a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law inn some way recognizes as a duty.
Objective Theory of Contracts
A theory under which the intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable person, rather than by the parties’ own subjective intentions.
Statute of Frauds
A state statute under which certain types of contracts must be in writing to be enforceable.
Bilateral
Promise for a promise
Unilateral
Promise for an act
Express Contract
The terms of the agreement are fully and explicitly stated in words, oral, or written.
Implied Contract
Parties create and defines the terms of the contract and can arise from: 1. The plantiff furnished some service or property 2. the plantiff expected to be paid for that service or property, and the defendant knew or shown have known that payment was expected. 3. The defendant had a chance to reject the service or property and did not/
Executed
Both parties have fully performed their sides of the Contract.
Executory
Only one party has fully performed their duties in the K, but the other has not.
Valid
Contracts that have the necessary elements to entitle at least one of the parties to enforce it in court. Meets: Agreement, Consideration, Capacity, and Legality
Unenforceable
A contract that cannot be enforced because of certain legal defenses against it. EX- K is illegal.
Void
Contract is not a contract at all. None of the parties have any legal obligations if a K is void.
Agreement
Parties must agree on the terms of the contract and manifest to each other their mutual assent(agreement) to the same bargain. Evidenced by two events: an offer and an acceptance.
Offer
A promise or commitment to do or refrain from doing some specified action in the future. Three elements necessary: 1. The offereor must have a serious intention to become bound by the offer. 2. the terms of the offer must be reasonable certain, or definite, so that the parties and the court can ascertain the terms of the contract 3. the offer must be communicated to the offeree
Revocation
The withdrawal of a contract offer by the offeror. Unless an offer is irrevocable, it can be revoked at any time prior to acceptance without liability.
Option Contract
A contract under which the offeror cannot revoke the offer for a stipulated time period because the offeree has given consideration for the offer to remain open.
Counteroffer
Rejection of the original offer and the stimultaneous making of a new offer.
Mirror Image Rule
A common law rule that requires the terms of the offeree’s acceptance to exactly match the terms of the offeror’s offer for a valid K to be formed.
Termination by Operation of Law
Can be terminated through the occurance of any of these events: 1. Lapse of time 2. destruction of the specific subject matter of the offer 3. death or incompetence of the offeror or offeree 4. supervening illegality of the proposed contract
Acceptance
A voluntary act by the offeree that shows consent to the terms of the offer. Must be unequivocal and communicated to the offeror.
Mailbox Rule (Deposited Acceptance Rule)
If the authorized mode of communication is the mail, then an acceptance becomes valid when it is posted, properly addressed, and stamped.
Consideration
Usually defined at the value (such as cash) given in return for a promise (bilateral K) or in return for a performance (in a unilateral K). MUST be BARGAINED for. - Cannot be past consideration -exception- Promissory Estoppel -act or forbearance or promise or giving up a legal right.
Legally sufficient Consideration Must consist of:
- A promise to do something that one has no prior legal duty to do 2. the performance of an action that one is otherwise not obligated to undertake. 3. The refraining from an action that one has a legal right to undertake (Forbearance)
Promissory Estoppel
The legal priniciple that a promise is enforceable by law.
