Contract Law Flashcards
1
Q
What are some Contract offer and acceptance basics?
A
- Acceptance can be written or oral
- Must be accepted by intended party (offeree)
- Acceptance can only be made by a party who knows an offer has been made and has all of the facts –a.k.a. a meeting of the minds
o They must intend to accept
o Acceptance should be in form required by offeror
o If Offeror requires certified mail and you send an e-mail – it’s not acceptance
o If offeree accepts but puts added stipulations, it is not acceptance, but instead becomes a counter-offer and the original offeror is now the offeree - If offeror dies or becomes insane before acceptance, offer is void
o Contract is binding if acceptance occurs before death/insanity
2
Q
CONTRACT REVOCATION
A
- Offeror can revoke an offer but the revocation doesn’t count until the offeree receives it
- If offeree finds out prior to acceptance that the offeror has sold the item, it counts as revocation and they cannot accept
- Option – some amount of consideration (like money) is put forth by offeror to keep the offer open for a stated period of time
o Offeror cannot revoke until the time has lapsed on the option
o Initial rejection by offeree doesn’t void the option
3
Q
What are contract requirements?
A
- These are contracts where someone becomes the exclusive provider of something in exchange for consideration
- Companies can’t get locked in to one and then have market conditions force them to sell something at what has become an unreasonable price
4
Q
What is Promissory Estoppel?
A
- Basically, you can’t tell a charity, Hey, if you buy this $100,000 piece of land, I’ll pay for the building that will go on it. and then renege on your promise
- Promises to donate are legally enforceable
5
Q
What are invalid contracts?
A
1. Fraud in the Execution o Person didn't know they were signing a contract o Void 2. Fraud in the Inducement o Person knew they were signing a contract, but were somewhere mislead as to what they were agreeing to - Voidable 3. Not Competent to Contract o Person unable to enter into a contract due to competence - Voidable 4. Duress o Extreme - Void Gun to their head and were forced o Simple - Voidable 5. Undue Influence o Voidable Parents get 18-year-old to sign contract 6. Illegal o Void o Contract was illegal in nature Person signed a contract to be a hitman 7. Error o Unenforceable Person signs a contract to pay $500.00 to have their lawn re-seeded but due to clerical error, it actually reads $5000.00
6
Q
What are Contracts made under the Statute of Frauds?
A
These contracts must be in writing: o Cannot be completed within one year o Involves the purchase of real estate o $500+ Sale of Goods o Co-signing and guranteeing the debt of another
7
Q
Fraud in the Execution
A
• Void
8
Q
Fraud in the Inducement
A
• Voidable
9
Q
Not Competent to Contract
A
• Voidable
10
Q
Undue Influence
A
• Voidable
11
Q
Duress–Extreme
A
• Void
12
Q
Duress–Simple
A
• Voidable
13
Q
Illegal
A
• Void
14
Q
Error
A
• Unenforceable
15
Q
What are parole evidence rules?
A
- Prevents one party to a written contract from coming in after the fact and claiming that a certain conversation took place that contradicts what is agreed upon in the written contract
- It also prevents using an oral argument to read into the meaning of what is written on paper
- If it’s on paper, it trumps what was agreed-upon orally prior to the written contract
- Caveat
o The Parole Evidence Rule does not:
* Negate oral agreements made after the written contract
* Disallow oral words to clarify ambiguous contract language
