Chapter 6: Contracts Flashcards
Role of Contracts
-for free market system to operate effectively and fairly
-personal freedom
-protects contractual choices
What is the Uniform Commercial Code (UCC)?
rules designed to render commercial law
Feature of Contracts: Agreement
offer by one party and accepted by other party
Feature of Contracts: Consideration
one party agrees to pay/provide to secure promise of another
Feature of Contracts: Capacity
legal ability of the parties to enter into a contract
ex: sane, sober, legal age
Feature of Contracts: Genuineness of Assent
parties knowingly agree to same thing
Feature of Contracts: Legality of Purpose
object of contract must not violate law or public policy
Bilateral Contract:
promise for a promise
Unilateral Contract:
promise for an act
Express Contract:
explicitly stated in writing/orally
Implied-In-Fact Contract:
inferred from conduct of parties
Quasi-Contract:
Implied contract created by court
Executory Contract:
not fully performed
Executed Contract:
fully performed by parties
Valid Contract:
includes everything needed for a binding contract
Unenforceable Contract
contract exists, but legal defense prevents enforcement
Void Contract:
not enforceable at all
Voidable Contract:
one party has the option to void or enforce contract
Free-market system cannot operate and effectively and fairly without reliable foundation in
contract law
Section 2-105 of UCC defines goods as
tangible and movable things
Unconscionable Contracts
agreements that are so thoroughly one-sided that fairness precludes enforcing them
Option Contracts
Offeror promises to keep an offer open for a specified period and offeree pays consideration in return
