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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What is 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


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

If it is a contract under seal.


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.


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.


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).


What are the two types of voidable contracts with minors?

Those binding unless REPUDIATED
Those NOT binding unless RATIFIED


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.


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


Is a unilateral mistake void or voidable?