Chp 9. Intro to Contracts Flashcards
(21 cards)
Contract
legally enforceable promise or set of promise
Freedom of Contract
contracts should be enforced as they are made by free will/ voluntarily
Elements of a contract
Offer - terms and conditions
Acceptance - agreement to terms
Consideration - benefits per party
Capacity - sober enough to agree
Legal - abiding by the law
Clickwrap contract
between user & company where it is online as a button/box to click before completing transaction that stats the user agrees to the online contract
substitute for signature
Unilateral Contract
only one party makes a promise
ex. buy 10 cups of coffee get one free with fully stamped coffee card
Bilateral Contract
both parties exchange promises and is establish once promises have been exchanged
Valid Contract
meets all legal requirements for a binding contract
Unenforceable contract
meets basic legal requirements; cannot enforce due to special rule
Voidable Contract
harmed parties have the legal right to cancel obligations
Void Contract
no legal obligations; illegal
Executory Contract
when legal duties still need to be fulfilled
Executed Contract
when parties have completed ALL legal contractual duties
Uniformed Commercial Code (UCC)
governs commercial transactions usually conducted across state lines
solve common problems in everyday commercial transactions
Promote fair dealing and higher standards in the market place
has 9 articles
Article 2
Under the Uniform Commercial Code
deals with sale of goods ( tangible personal property)
Hybrid Contract
Hybrid of both goods and services
ex. buying a stereo with the condition they install it
Common Law (contracts)
applies to sale of real estate, services, and intangible goods
Restatement of contracts
to codify and systematize principles of contracts extracted from conflicting judicial opinions
DOES NOT have the force of Law; Highly influential in shaping contact law
Restatement (SECOND) of contracts
created after the first restatement
shifted precise technical rules (Rules) to broader discretionary principles (Standards)
DOES NOT have force of law
Quasi-Contract
also known as “unjust enrichment” or “contract implied in law”
an obligation imposed by the law to avoid injustice; not a voluntary contractual obligation
Quasi-Contract Liability
when one party confers (forfeits) a benefit on another who knowingly accepts and retains it making it unjust to do so with out paying
Doctrine of Promissory Estoppel
The promisor argues that no contract was established can work as an injustice against the promise who relied on the promise
ex. Grandfather promises to pay for college tuition only if granddaughter doesn’t work til 18; granddaughter doesn’t work to save money, at 18 grandfather denies to pay for tuition and tells her to pay on her own
