Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Business Law, Valid Contract > Chapter 9 Contracts > Flashcards

Chapter 9 Contracts Flashcards

(83 cards)

Start Studying
1
Q

Sources

A

Article 2 ucc (uniform commercial code) - goods

State common law - services and land

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Elements of a valid contract

A

Offer
Acceptance
Consideration
No defense

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Conduct invalidating assent - what was done wrong to make the contract invalid. Steps

A 
Duress
Undue influence
Fraud
Non fraudulent misrepresentation 
Mistake
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Another no defense (3 more)

A

Illegal
Lack of capacity - need to be 18 years or older
Not evidence by writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Void and voidable contracts

A

Void - cannot be enforced in court

Voidable - can be made void.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Classification of contracts

Express contracts

A

Agreement stated in words, either oral or writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Classification of contracts

Implied in fact contract

A

Agreement made in conduct - no words were said but a contract happened, ex. Supermarket

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Executed and executory contracts

Exceeded contract

A

Contract that has been FULLY PERFORMED by all partied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Executed and executory contracts

Executory contract

A

A contract that has YET to. Be fully performed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Offer

A

Communication - offerer makes offer to offeree and the offeree must Have knowledge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Acceptance

A

Willingness to enter into a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Acceptance

Mirror image rule

A

Exact terms on both sides

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Acceptance

Communication of acceptance

A

When it reaches the offeree either by mail or by email hitting SUBMIT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Consideration

A

Encouragement to enter a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Consideration

Legal sufficiency

A

Benefit to promissory (other person) and a detriment (loss) to the promise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Consideration

Bargain for exchange

A

Mutually agreed upon exchange

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Examples of consideration

A

Money

Peace of mind

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Conduct invalidating Assent

Duress

A

Wrong act or threat that overcomes free will

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Conduct invalidating Assent
Duress
Physical compulsion

A

Involving FORCE renders contract VOID

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Conduct invalidating Assent
Duress
Improper threats

A

Threat renders contract VOIDABLE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Conduct invalidating Assent
Undue influence
Renders

A

Taking unFair advantage of other party by dominant position b/c of confidential relationship renders a contract VOIDABLE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Conduct invalidating Assent
Fraud
Fraud in the execution
Renders

A

Document is used to deceive party into entering the contract
Renders VOID

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Conduct invalidating Assent
Fraud
Fraud in the inducement

A

When no document is used to deceive other into entering a contract
Renders to be VOIDABLE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Conduct invalidating Assent

Non-fraudulent misrepresentation

A

Incorrect information is given

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Conduct invalidating Assent Non-fraudulent misrepresentation Negligent misrepresentation Renders
Speaker did not take care to ensure the information was correct Renders VOIDABLE
26
Conduct invalidating Assent Mistake Mutual mistake
Both parties are mistaken either one can choose to walk away Renders Voidable
27
Conduct invalidating Assent Mistake Unilateral mistake Unless?
One party is mistaken about given facts, remains valid | Unless the other party knew or should have known about the mistake
28
Contractual capacity | Minors
Under the age of 18
29
Contractual capacity Minor Liability on contracts Exceptions
VOIDABLE at the minors option | Clothes, food, and shelter NOT VOIDABLE
30
Contractual capacity Mentally incompetent persons Person under guardianship
Contrars made by person under guardian ship by court renders VOID
31
Contractual capacity | Mentally illness or defect
VOIDABLE, the Person does not know the extent of their actions
32
Contractual capacity | Intoxicated
Voidable and intoxicated can be drunk or drugs. Etc.
33
Illegal bargains | Violations of statutes
Court does enforce agreements declared illegal VOID
34
Illegal bargains Violations of statutes Licensing statute
Statute that require licenses for traits, professions or businesses, if violated renders VOID
35
Illegal bargains Violations of statutes Gambling statute
Statutes that forbid betting renders VOID
36
Illegal bargains Violations of statutes Usury statutes
Statutes that forbid to charge higher interest. Renders VOID
37
Illegal bargains Violations of statutes Sunday statutes
Prohibit certain activities in Sunday. Renders VOID
38
Illegal bargains | Violation of public policy
Injury to public good
39
Illegal bargains Violation of public policy Common law restraint of trade and the two types Unenforceable
Unreasonable prevent of trade 1. sale of business - can't open of sell a business in an unreasonable geographic area or time 2. Employment contracts - prohibiting employees form competing with employer for a reasonable time
40
Illegal bargains | Exculpatory clause
Excusing party from liability - unenforceable
41
Illegal bargains | Unconscionable contracts
Unfair or unduly harsh agreements are unenforceable
42
Illegal bargains | Procedural unconscionability
Unfair or irregular bargaining (how was the negotiation conducted)
43
Illegal bargains | Tortious conduct
Agreement that Requires a person to commit a tort is unenforceable
44
Illegal bargains | Corrupting public officials
Agreement that corrupt officers are not enforceable
45
Written contracts | Statutes of rules
Law that list the type of contracts that should be in writing
46
Written contracts | Contracts within the statute of frauds
Must be evidence by writing to be enforceable
47
Written contracts | Methods of compliance (how you go about writing the agreement)
1. Specify the parties of contracts 2. Specify subject matter on essential terms 3. Be signed by party
48
Written contracts | Parole evidence rule
Contract is complete and no other evidence is needed to interpret
49
written contracts | Rules of interpretation of contracts
1. Commonly accepted meaning are used unless party manifest different intentions 2. Words control figures based in amount,
50
third parties to contracts | Privity of contracts
Only the parties to a contract can enjoy the right and perform the duties at the exclusion of third parties
51
Third party to contracts | Assignment of rights
Transfer to third party so assignees right to performed is extinguished ( passing the right to somebody so they can receive the benefits)
52
Third party to contracts | Delegation of duties
Transfer of contractual obligations (duty)
53
Third party to contracts | Assignment of contracts
Both rights and duties are assigned
54
Third party to contracts | Third party beneficiary contracts
One party promises to render performance by third person
55
Performance breach and discharge | Discharge
Termination of duty - party no longer has to do what was told
56
Performance breach and discharge | Discharge by performance
Fulfillment of obligation renders in discharge (party did all that was promised)
57
Performance breach and discharge | Discharge by breach (party failed to do what was promised)
Material breach - failure of one party to do most of or all of what was promised Immaterial breach- failure of one party to do one small port of what was promised
58
Performance breach and discharge Discharged by agreement of the parties Mutual rescission
Agreement to terminate their respective duty
59
Performance breach and discharge Discharge by agreement Substituted contract
New contact discharges old contract
60
Performance breach and discharge Discharge by agreement Accord and satisfaction.
One party is given a new duty and is discharged from the old contract
61
Performance breach and discharge Discharge by operation of law Impossibility
Performance of the contract cannot be done.
62
Performance breach and discharge Discharge of operation cannot be done Destruction of subject matter
Discharge contract if occurs without the promissor fault
63
Contract remedies
Court awards plaintiff in breach of contract | Example: money
64
What are the two types of Contract remedies
Monetary damages | Remedies in equity
65
Contract remedies | 3 types of monetary damages
Compensatory damages Incidental damages Consequential damages
66
Contract remedies Monetary damages Compensatory damages
Placing the injured party in as good a position as he would have held the other party
67
Contract remedies Monetary damages Incidental damages
Rise directly out of the breach
68
Contract remedies Monetary damages Consequential damages
Arising as a foreseeable result of the breach
69
Contract remedies | When is Remedies in equity available
When there is no adequate monetary remedy at law
70
Contract remedies | Types of remedies in equity
Specific performance | Injunction
71
Contract remedies Remedies of equity Specific performance
Ordering breaching party to render promised performance
72
Contract remedies Remedies of equity Injunction
Court order Prohibiting a party from doing specific act
73
Quasi contracts
Exception - remember benefits | Obligation that is supposed to avoid injustice
74
Requirements Quasi contracts
Oppose quasi contract when Plaintiff confer a benefit Upon the defendant The defendant allows or appreciate benefit Defendants retention of benefit is inequitable (unfair )
75
Promissory estoppel
Doctrine enforcing some non-contractual promises
76
Requirements of promissory estoppel
1. Promisor made a promise 2. Promisee relied on promise to his detriment 3. Promisor knew or should have known the promised would rely on that promise
77
Mutual assent Offer Definiteness
Offer must be specific in terms of quantity and price
78
Mutual assent Offer Lapse of time
Offer remains for the period specified or a reasonable period
79
Mutual assent Offer Counter offer
Counter offer that terminated original offer
80
Mutual assent Offer Death or incompetency
Either offeree or offerer terminates offer
81
Mutual assent Offer Destruction of the subject matter (item being bought or sold)
Offer can be terminated at any time before It is accepted
82
Mutual assent Offer Destruction of the subject matter (item being bought or sold) exception
Option contract- binds the offerer to keep the offer open for a specified time
83
Definition of a contract
Binding AGREEMENT, that courts ENFORCE

Business Law, Valid Contract (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions