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What is a contract?

A voluntary exchange of promises or commitments between parties that are legally enforceable in court.


What is the objective test for a contract?

Whether a reasonable person would believe that the parties intended to enter into a contract.


Who is offeror and offeree in a self-service store

Customer is the offeror and cashier is the offeree.


Who is the offeree in an internet transaction?

The customer.


What is a standard form contract?

Contract that is offered to anyone.


What is an option

A separate contract where the offeror is paid to hold an offer open for acceptance for a specified period.


What is consideration?

The price for which the promise of another is bought.


When will the courts ases the aqequate nature of fair value?

When there is suspicion of fruad?


What is Quantum meruit

Reasonable payment for services rendered.


What is the principle of equitable estoppel

Courts provide equitable relief when one person asserts facts or makes gratuitous promises, and another relies on those statements to their detriment.


What is injurious reliance?

Allows an injured party to force the promisor to perform the promise.


What have courts outlined as necessaries for children?

Food, clothing, lodging, medical attention, legal advice and transportation.


What is the difference between a void contract and voidable contract

Void contract was null from its inception, voidable may be terminated by either party.


What are the qualities to prove diminshed contractual capacity?

That you had diminished capacity and the other party knew.


What is privity of contract rule?

That a contract does not confer any benefits or place any obligations on a third party.


What is a vicarious performace?

Situation where a party to a contract obtains someone else to carry out their duties.


What are choses in action?

Rights to intangible property.


What are choses in possession?

Rights to tangible property.


What are the three types of contract intrepretations?

Literal or plain meaning
Liberal approach
Contra proferentum- means against the party who suggested the term.
Courts use literal or liberal.


What is the parol evidence rule?

A term that was previously agreed upon can not be included in the written contract.


What rule do courts fall back on when the contract is vague?

Contra preoferentum.


What is misrepresentation?

When one party induces another party to enter into an agreement by making a material pre-contractual statement or fact that is false.


Misrepresentation may result in what consequences?

Rescission: Contract is voidable at the option of the victim.
Restitution: giving back benefits already received under the contract.
Damages in the form of monetary compensation.


What is undue influence

Improper use by one person of their power and must be of a degree to rob the former of his or her free wil.


What is duress?

Actual or threatened violence as a means of coercing a party to enter into a contract.


What happens to a party that performs their end of the contract late?

They may be liable for any losses that occured because of the lateness.


What is a discharge condition subsequent?

Contract states that the agreement will be terminated if a certain event occurs.


What is discharge condition of rescission?

Parties agree to bring their contract to an end


What is accord and satisfaction

Parties agree to substitute a new contract and release the old one.


What is novation?

Parties agree to make substantial changes to the terms of a contract. New contract replaces old one.