Legal Term Chapter 18 - Formation of Contracts

Question 1

Acceptance

Answer 1

If the offeree assents to the terms of the offer, an acceptance occurs and an agreement comes into existence.

Question 2

Act

Answer 2

Performance.

Question 3

Assent

Answer 3

Agree.

Question 4

Avoid

Answer 4

To annul, cancel, or make void.

Question 5

Bargain

Answer 5

Another name for agreement.

Question 6

Bilateral contract

Answer 6

A contract containing 2 promises–one made by each party.

Question 7

Browsewrap contract

Answer 7

A type of e-contract where the terms of online agreement are available to review or browse, but explicitly accepting the terms is not necessary.

Question 8

Capacity

Answer 8

Legal competency.

Question 9

Clickwrap agreement

Answer 9

A contract entered into online and commonly used with software licenses or web based transactions in which the offeree enters into the contract by clicking on a dialog box that might say “I accept” or “Ok.”

Question 10

Condition precedent

Answer 10

An event that must first occur before an agreement (or deed or will) becomes effective.

Question 11

Contract

Answer 11

An agreement that is enforceable in a court of law.

Question 12

Contract implied in fact

Answer 12

A contract that arises from the conduct of the parties rather than from their express statements; such as riding the bus.

Question 13

Contract implied in law

Answer 13

A contract imposed by law to prevent unjust enrichment; also called quasi contract.

Question 14

Counteroffer

Answer 14

A response to an offer in which the terms of the original offer are changed.

Question 15

Digital signature

Answer 15

An algorithmically created message that is unique for the recipient, allowing the recipient to respond electronically in a cryptographic way, so as to confirm that the actual recipient was the one “signing” online.

Question 16

Disaffirm

Answer 16

To get out of a voidable contract or repudiate; also called avoid.

Question 17

E-contract

Answer 17

Contracts entered into over the internet, including licenses to use software.

Question 18

E-signature

Answer 18

A method of signing an electronic message that identifies the sender and signifies his or her approval of the message’s contract.

Question 19

Executed

Answer 19

Carried our or performed; such as a complete contract.

Question 20

Executory

Answer 20

That which is yet to be executed or performed.

Question 21

Express contract

Answer 21

A contract in which the terms are stated or expressed by the parties (orally or in writing).

Question 22

Guardian

Answer 22

One who legally has the care and management of the person, property, or both of a minor or incompetent.

Question 23

Implied contract

Answer 23

A contract in which the terms are not stated or expressed by the parties, but behavior shows them to be in a contract.

Question 24

Infant

Answer 24

The legal name for a minor.

Question 25

Invitation to negotiate

Answer 25

A request to an individual or to the public to make an offer; also called invitation to deal.

Question 26

Majority

Answer 26

Adulthood which is 18 in most jurisdictions.

Question 27

Minor

Answer 27

A person under the age of majority, usually under 18.

Question 28

Necessaries

Answer 28

Food, clothing, shelter, or medical care that are needed by a minor, but not supplied by a parent or guardian.

Question 29

Nullity

Answer 29

Nothing; as though it had not occurred.

Question 30

Offer

Answer 30

A proposal to enter into a contract made by an offerer.

Question 31

Offeree

Answer 31

One to whom an offer is made.

Question 32

Offerer

Answer 32

One who makes an offer.

Question 33

Quasi

Answer 33

As if; almost as it were.

Question 34

Quasi contract

Answer 34

Another name for a contract implied in law.

Question 35

Ratify

Answer 35

Approve; confirm.

Question 36

Rejection

Answer 36

The refusal of an offeree of an offer.

Question 37

Restitution

Answer 37

A person who has been unjustly enriched at the expense of another is required to restore the other person to his or her original position prior to loss.

Question 38

Revocation

Answer 38

The act of revoking; the taking back of an offer by an offerer before it has been accepted.

Question 39

Reward

Answer 39

An example of a unilateral contract which comes into existence when the offer is accepted by the performance of an act.

Question 40

Shrinkwrap contract

Answer 40

Computer software makers often put their terms of licenses inside the box with the software disk. Since the boxes were "shrinkwrapped," one couldn't find the contract terms until the plastic wrap was discarded; some courts find these unenforceable because the buyer did not agree before purchase.

Question 41

Suretyship

Answer 41

Promises to a creditor to pay someone else's debts.

Question 42

Sustain

Answer 42

To support.

Question 43

Unenforceable contract

Answer 43

A contract that cannot be enforced for some legal reason; example is Statute of Frauds requiring certain contracts be in writing.

Question 44

Uniform Electronic Transaction Act

Answer 44

Creates a framework for determining the legality of e-signatures in commercial and government transactions in D.C. and 47 states (not IL, NY, or WA).

Question 45

Unilateral contract

Answer 45

A contract containing one promise in exchange for an act.

Question 46

Unjust enrichment

Answer 46

The situation that occurs when one person retains money, property, or other benefit that in equity and justice belongs to another.

Question 47

Valid

Answer 47

A contract that meets all of the requirements of an enforceable agreement; redundant because an unenforceable agreement is not a contract.

Question 48

Void

Answer 48

No legal effect; in contracts, this is redundant because it would not be a contract.

Question 49

Voidable

Answer 49

Capable of being disaffirmed or avoided.