Flashcards in Chapter 6 Section 1: Contracts Deck (67)
A promise the law will enforce
Define express contract
Formed by language (oral or written)
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)
Define implied-in-law contract
What is it also known as?
Not a contract - a remedy to prevent unjust enrichment
Define unilateral contract
When is it formed?
One promise given in exchange for performance.
Not formed until performance is completed
Define bilateral contract
When is it formed?
Two promises exchanged for each other
Formed when promises are exchanged
Define executory contract
Duties remain to be performed
Define executed contract
All of the duties have been performed
Where is common law derived from?
What falls under it?
What does the UCC govern?
Contracts for sale of goods
What are the three requirements of a legally enforceable contract?
Offer and acceptance
Exchange of consideration
Lack of defenses
Does a contract need to be in writing?
Mutual assent - a meeting of the minds
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
What questions should be asked to determine if an offer exists?
Definiteness and certainty?
Communication of the above?
Are advertisements offers?
What's the exception?
Usually not - they're invitations seeking offers
If the offeree is specified (rewards) it's an offer
What needs to be specified in the offer for RISE?
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
What are the three ways to terminate an offer?
Can you revoke an offer after you promise to keep it open?
What are the three limits on the offeror's power to revoke?
Unilateral contract (if work is begun)
Merchant firm offer
What is an option contract?
The offeree buying time for the offeror to keep the offer open
Can an offer be accepted after it is rejected?
When is a rejection, counteroffer, offer, or revocation effective?
Under what three circumstances is an offer automatically terminated?
Death or incompetency
Destruction of subject matter
What is the mirror image rule?
Under what law is it required?
An acceptance must be the mirror image of the offer
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
What needs to be exchanged in order to be called consideration?
Something of legal value - something you're not otherwise obligated to do
Does the consideration need to go to the third party?
Does the consideration need to be fair?
No, but it can't be unconscionable and it must be arms-length