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Final Exam Flashcards

(56 cards)

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1
Q

Contract

A

Legally binding agreement between two or more parties who agreed to perform or to refrain from forming some act now or in the future

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2
Q

Four elements of a contract

A

Offer
Acceptance
Consideration
Capacity and legality

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3
Q

Contract Fraud - some contracts need to be in……

A

Writing

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4
Q

No genuineness of assent

A

Meeting of the minds. (Agreement)

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5
Q

Bilateral contract

A

A promise for a promise

Contract is formed when promises are exchanged

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6
Q

Unilateral contract

A

Promise for an act

Contract is formed when the act is formed by the offeree

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7
Q

Executed contract

A

Contract that has been fully performed by all parties

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8
Q

Executory contract

A

A contract that hasn’t been fully performed by one or more parties

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9
Q

A contract can be voided by a party due to a number of factors

A

Age of parties

Fraud Duress or undue influence

Contract may be ratified by the party who suffered the harm

Kid buys boat. Parents like deal. They ratify contract to keep boat.

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10
Q

Contract is clear and unambiguous

A

Plain meaning rule will be applied if conflict arises

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11
Q

In a dispute the court will limit its review of

A

The four corners of a contract and will not consider extrinsic evidence (outside of a thing)

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12
Q

If unclear or ambiguous…

A

Court can consider extrinsic evidence

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13
Q

Contract is construed against…

A

The drafter

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14
Q

Written provisions outweigh…

A

Typed provisions

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15
Q

Specific language outweighs

A

General language

Courts will give reasonable and ordinary meaning to the terms

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16
Q

OFFER

A

contains three terms
Intent of parties to be bound
Reasonable certain terms
Must be communicated to offeree

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17
Q

Intent

A

Objective theory of contract offerers words and conduct will be construed to mean whatever a reasonable person and the offerees position would think his words and conduct mean

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18
Q

Certain statements are not considered to have the required level of intent

A

Statements made without serious intent - anger, just, or undue excitement.
statements of future intent.

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19
Q

Definitiveness (certainty)

A 
Generally a contract must identify 
Names of the parties
Subject matter involved
Consideration to be exchanged 
(What you give up to get it)
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20
Q

Definitiveness - parties should also include:

A

When payment is due and when performance must occur. Court will usually infer a reasonable time.

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21
Q

Acceptance

A

Voluntary act words or conduct by offeree that shows as sent to terms of offer

Must be unequivocal
Not a counter offer

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22
Q

The act generally qualifies as the communication in which type of contract

A

Unilateral

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23
Q

Communication bilateral contract

Study These Flashcards
A

Acceptance occurs when dispatched by offeree (mailbox rule) unless offeror designates specific mode or manner of communication

24
Q

Termination of Offer

Study These Flashcards
A

Revocation
Rejection
Counter offer
Termination by law

25
Revocation
Offeror withdraws contract before offeree accepts
26
Rejection
Offeree expresses intent to not accept
27
Termination by law
Lapse of time Destruction of property before acceptance of offer Death or injury of party before acceptance
28
Consideration
Must be of legally sufficient value There must be bargained for exchange
29
Adequacy or consideration
Concerns fairness of the bargain Courts generally won’t question the adequacy unless it’s a red flag suggested fraud, undue influence, or duress.
30
Capacity
The legal ability to enter into contact Age - 18 unless early emancipation
31
Contract entered by minor
Voidable by minor Enforceable by parents Minor will remain liable for contracts involving necessities
32
Usury laws
Prohibits interest rates above a specific percentage
33
Blue laws
Prohibit work on sundays
34
Unconsciousable contracts
Bargain is so grossly unfair or oppressive toone party that it shocks the conscience of the court
35
Severability clause
Permit court to strike illegal terms but enforce remaining legal terms
36
Mistake of fact
Bilateral - both parties Unilateral - one Bilateral - either party May rescind Uni - if other party was aware of mistake, or mistake was due to inadvertent math error
37
Mistake of value
Not a defense, value is subjective
38
Fraudulent misrepresentation
Misrepresentation that is consciously false and intended to mislead the other party (Scienter) Fake signature
39
Undue influence
Utilizing a special relationship with another to greatly influence that party to enter into the contract. Arm’s-length transaction: market value transaction
40
Duress
Forcing another party to enter into a contract through fear The threatening act must be illegal. Threatening to exercise a legal right is not duress
41
Adhesion contract
When terms of the contract are dictated by the party with overwhelming bargaining power. Usually drafted exclusively by that party. Unconscionable contract
42
Statute of frauds
Certain contracts that are not in writing are not enforceable. Real property, contracts that cannot be performed within one year, sale of goods over $5000. Services don’t need to be in writing
43
Privity of contract
Generally only parties involved in the contract have rights and liabilities under the contract Exceptions Assignment Third party beneficiary
44
Assignment of contract
Transfer of contractual rights and/or liabilities to a third-party. Example mortgages, loans, leases
45
Certain rights and responsibilities cannot be assigned
Personal services contract. When contract prohibits assignment
46
Third party beneficiary
Occurs when parties intend for a third-party to benefit from the contract Intended beneficiary: intended beneficiary can sue to have contract enforced - insurance
47
Discharged
The majority of contracts are discharged when both parties perform their duties under the contract Complete performance Substantial performance
48
Condition
Possible event, the occurrence or non-occurrence of which will trigger a legal obligation to perform
49
Condition Precident
Must be for filled before another parties performance can be required. Securing financing for a home to be purchased.
50
Condition subsequent
When in an event terminate another parties obligation to perform. Engineer in a license revoked.
51
Remedy
Legal or equitable relief granted to injured party when contract has been breached. Used to enforce a right or redress an injury
52
Compensatory damages
Damages actually sustained by the nonbreaching party. Difference between parties promised performance minus parties actual performance
53
Liquidated damages
Found in the contract. Specifies dollar amount to be awarded if Breach occurs. Will be upheld unless amount is excessive.
54
Limitation of liability clauses
A party cannot contract away liability for fraudulent or intentional injuries to another party. Party may be able to limit liability for accidental acts under the contract. Dry cleaner.
55
Click on agreements
Primary methods used to form e contracts I accept or I agree
56
Hypertext a link to contract
Often contains other important terms like forum selection and choice of law

Business Law (4 decks)

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