Exam 3 Flashcards
Four basic requirements of a contract
1) Mutual Assent
2) Consideration
3) Legality of Object
4) Capacity
Mutual Assent
the parties to a contract must manifest by words or conduct that they have agreed to enter into a contract.
Consideration
each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange
Legality of Object or Lawful Objective
the purpose of a contract must not be criminal, tortious,
or otherwise against public policy.
Capacity or Legal Competence
the parties to a contract must have contractual capacity
Implied (in-fact) contract
contract in which agreement of the parties is inferred from their
conduct
Implied (in-law) contract
quasi-contract in which the law pretends it’s a contract (hospital restaurants)
Executed contract
contract that has been fully performed by all of the parties.
Executory contract
contract partially or entirely unperformed by one or more of the parties.
Requirements of an Offer
Communicated
Serious intent
Sufficiently certain
Revocation
the offeror generally may cancel or revoke an offer at any time prior to its acceptance subject to certain exceptions
Lapse of Time
offer remains open for the time period specified or, if no time is stated, for a reasonable period of time
Duress
wrongful act or threat that overcomes the free will of a party; physical
compulsion or coercion involving physical force renders the agreement void.
Undue Influence
taking unfair advantage of a person by reason of a dominant position
based on a confidential relationship. Renders the contract voidable
Fraud
in the execution - a misrepresentation that deceives the other party as to the nature of a document evidencing the contract; renders the agreement void.
in the Inducement - renders the agreement voidable if false representation, fact, materiality, knowledge of falsity and Intention to deceive, and/or justifiable reliance are present
