Contract Law Flashcards
(17 cards)
What are some Contract offer and acceptance basics?
- 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
CONTRACT REVOCATION
- 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
What are contract requirements?
- 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
What is Promissory Estoppel?
- 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
What are invalid contracts?
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
What are Contracts made under the Statute of Frauds?
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
Fraud in the Execution
• Void
Fraud in the Inducement
• Voidable
Not Competent to Contract
• Voidable
Undue Influence
• Voidable
Duress–Extreme
• Void
Duress–Simple
• Voidable
Illegal
• Void
Error
• Unenforceable
What are parole evidence rules?
- 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
Are contracts assinable to 3rd parties?
Yes, Contracts are assignable to a third party beneficiary, but must be done so in good faith
Are Obligations assignable?
Yes and
o Assignor is still liable
o Assignor may be released from liability if other party grants a novation
When can Contracts be discharged by Law?
o Party under Contract is bankrupt
o Party under Contract dies or is incapacitated
o Party cannot physically complete the Contract
They are in prison, so they can’t finish building the new addition to your house
