Chapter 6 Section 1: Contracts Flashcards Preview

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Flashcards in Chapter 6 Section 1: Contracts Deck (67)
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1

Define contract

A promise the law will enforce

2

Define express contract

Formed by language (oral or written)

3

Define implied-in-fact contract

A contract formed by conduct (ex. like picking up an item in store off shelf, you are implying you want to buy it)

4

Define implied-in-law contract
What is it also known as?

Not a contract - a remedy to prevent unjust enrichment
Quasi-contract

5

Define unilateral contract
When is it formed?

One promise given in exchange for performance.
Not formed until performance is completed

6

Define bilateral contract
When is it formed?

Two promises exchanged for each other
Formed when promises are exchanged

7

Define executory contract

Duties remain to be performed

8

Define executed contract

All of the duties have been performed

9

Where is common law derived from?
What falls under it?

The courts

RISE

Real Estate
Insurance
Services
Employment

10

What does the UCC govern?

Contracts for sale of goods

11

What are the three requirements of a legally enforceable contract?

Offer and acceptance
Exchange of consideration
Lack of defenses

12

Does a contract need to be in writing?

Usually not

13

Define agreement

Mutual assent - a meeting of the minds

14

What is required for an offer to exist?

The communication must create a reasonable expectation in the offeree that the offeror intends to make a contract

15

What questions should be asked to determine if an offer exists?

Intent?
Definiteness and certainty?
Communication of the above?

16

Are advertisements offers?
What's the exception?

Usually not - they're invitations seeking offers
If the offeree is specified (rewards) it's an offer

17

What needs to be specified in the offer for RISE?
UCC?

All terms for RISE
- ID of offeree and the subject matter
- price to be paid
- time of performance
- quantity involved
- the nature of the work to be performed

Only quantity for UCC

18

What are the three ways to terminate an offer?

Revoke
Reject
Automatic

19

Can you revoke an offer after you promise to keep it open?

Yes.

20

What are the three limits on the offeror's power to revoke?

Option contract
Unilateral contract (if work is begun)
Merchant firm offer

21

What is an option contract?

The offeree buying time for the offeror to keep the offer open

22

Can an offer be accepted after it is rejected?

Not really

23

When is a rejection, counteroffer, offer, or revocation effective?

When received

24

Under what three circumstances is an offer automatically terminated?

Death or incompetency
Destruction of subject matter
Illegality

25

What is the mirror image rule?
Under what law is it required?

An acceptance must be the mirror image of the offer
RISE

26

What is the mailbox rule?
What is the exception?

Acceptances are effective when dispatched, even if it is lost in the mail
If the offeror says they need to receive to offer for it to be valid

27

What needs to be exchanged in order to be called consideration?

Something of legal value - something you're not otherwise obligated to do

28

Does the consideration need to go to the third party?

Not necessarily

29

Does the consideration need to be fair?

No, but it can't be unconscionable and it must be arms-length

30

Is a gift protected by law?

No

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