Part 1 Flashcards
(26 cards)
Valid Contract
Satisfies all the law requirements. It’s forceable
Elements of a contract
- Offer
- Acceptance
- Consideration
- Legality
- Capacity
- Consent
- Writing
Unenforceable Agreement
Parties intend to form a valid bargain but court says that some rule of law prevents enforcing it
Voidable contract
Law permits one party to terminate the agreement. Party has the power to step out of agreement
Void Agreement
Neither party can enforce. Dead on arrival. Never was enforceable
Bilateral contract
Both parties make a promise. Contract is binding
-“I’ll give you $2 mil if you star in my movie” “its a deal”
Unilateral contract
One party makes a promise that the other party can accept only by actually doing something
-$100 if someone finds my dog
Executory contract
Contract is made but one or more parties has not yet fulfilled its obligations. Contract is done.
-movie begin film in 3 months
Executed contract
A contract when all parties have fulfilled their obligations
-the movie is done being filmed and the producer has paid her
Express contract
Parties explicitly state important terms of their agreement
Implied contract
The words and conduct of the parties indicate that they intended an agreement
Promissory estoppel
No valid contract but the defendant made a promise that the plaintiff relied on.
Promissory: someone makes offer “promise”
Estoppel: you can’t do that “stop”
What elements must plaintiff show to use promissory estoppel
- defendant made a promise knowing plaintiff would rely on it
- plaintiff did rely on it
- the only way to avoid injustice is to enforce the promise
What elements must the plaintiff show to use quasi-contract
- plaintiff gave some benefit to the defendant
- plaintiff reasonably expected to be paid for the benefit & defendant knew this
- the defendant would be unjustly enriched if he didn’t pay
Quasi-contract
The defendant received benefit from the plaintiff. contract implied in law
UCC
Uniform commercial law: law for business transactions that reflected modern commercial methods & provided uniformity throughout the United States
-Article 2
UCC- Article 2
Governs contracts when the primary purpose is a sale of goods.
- Goods: anything moveable, except for money, securities, & certain legal rights
- Will not deal with quantity
How does the UCC approach open terms in a contract
UCC article 2: gap filler or declare in contract how price will be determined at time
Gap filler
UCC terms for supplying missing terms, gov handles it
- Open price
- Output and requirements provisions
Open price
goods sold for reasonable price> market price or established by a neutral expert
Output and requirements provisions
Output contract: Seller sells all output to the buyer who agrees to accept it
Requirements provisions: buyer obtains all goods needed from the seller
Revoke an offer
Before the offered accepts the offeror “takes it back”
Option contract
An interested purchaser buys the right to have the offer held open. The offeror mat not revoke an offer burning the option period
Firm offers A promise made in writing signed by a merchant, if he agrees to hold open the offer for a stated period, the offer may not be revoked.
- open period may not exceed 3 months
- UCC contracts only
A promise made in writing signed by a merchant, if he agrees to hold open the offer for a stated period, the offer may not be revoked.
- open period may not exceed 3 months
- UCC contracts only
