Contracts: Consideration, Capacity, Consent, Legality Flashcards Preview

2007GIR - Legal Issues for Managers > Contracts: Consideration, Capacity, Consent, Legality > Flashcards

Flashcards in Contracts: Consideration, Capacity, Consent, Legality Deck (9)
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1

What is Consideration?

Consideration:
what each (contracting) party bargains for and gives in exchange for the return promise or performance of the other party
the price you pay to buy the other person’s promise

2

When is the only time consideration does not need to be present?

If it is a contract under seal.

3

What is capacity?

All parties must have the ability to enter a contract that is valid. Examples of people who aren't valid are: Drunk, minors, mentally ill.

4

What would make a contract with a minor valid?

The minor paying cash (consideration) or entering into contracts for necessaries and beneficial contracts of service.

5

What is a necessaries contract?

Articles and services necessary for the reasonable comfort of a minor as well as basic items of food, clothing and shelter (so a plaintiff must establish that the goods or services could be necessaries).

6

What are the two types of voidable contracts with minors?

Those binding unless REPUDIATED
Those NOT binding unless RATIFIED

7

What is consent?

Genuine permission between both parties to enter into the contract. It was not a mistake, a misrepresentation, made under duress, undue influence or unconscionable conduct.

8

What are the 4 types of mistake?

Common mistaks The same mistake was made
Mutual mistake - Two different mistakes (cross purposes)
Unilateral mistake - One party is mistaken
Non est Factum - It's not my deed

9

Is a unilateral mistake void or voidable?

Voidable