Semester One Final Flashcards
(96 cards)
1
Q
What must be in a contract?
A
Offer and acceptance, genuine assent, legality, consideration, capacity, proper form
2
Q
Offer and acceptance
A
both parties agree on terms without changes
3
Q
genuine assent
A
no deceptions or unfair pressure
4
Q
legality
A
can’t be a crime
5
Q
capacity
A
legal ability to contract for themselves
6
Q
proper form
A
some contracts need to be in writing
7
Q
requirements of an offer
A
contractual intent must be present, offer must be communicated to the offeree, essential terms must be complete and definite
8
Q
jests
A
a reasonable person decides if an offerer of offeree is joking
9
Q
preliminary negotiations
A
information communicated merely to induce someone to initiate bargaining
10
Q
complete term
A
identify price, subject matter, quantity (directly or indirectly)
11
Q
Definite
A
each essential term must be identified clearly
12
Q
offeror
A
a person who makes an offer
13
Q
offeree
A
person to whom the offer is made
14
Q
consideration
A
promisor demands and generally must receive in order to make their promise legally enforceable
15
Q
executed contract
A
fully performed both sides complete
16
Q
executory contract
A
not been fully performed one side or both aren’t complete
17
Q
implied in fact contract
A
terms, not expressly stated but can be inferred from the party’s acts or conduct
18
Q
unilateral contract
A
offeror promises something in return for the offeree’s performance and indicates that his performance is the way acceptance is to be made
19
Q
bilateral contract
A
formed by a mutual exchange of legally binding promises
20
Q
How can offers be ended?
A
Revocation by the offeror, time stated in the offer, rejection by the offeree, counteroffer
21
Q
revocation by the offeror
A
right to withdraw an offer before it’s accepted
22
Q
counteroffer
A
I refuse your offer but here is my proposal
23
Q
firm offer
A
contractual proposal in writing by the merchant on how long the offer is to stay open
24
Q
What is required of an acceptance
A
only offerees may accept, the acceptance must match the offer, and acceptance must be communicated to the offeror
25
acceptance must match to offer
mirror image rule
26
acceptance must be communicated to the offeror
promises as acceptance, performance as acceptance, when acceptance is effective
27
when acceptances are effective
using certain communication methods to accept time
28
acceptance
occurs when a party to whom an offer has been made
29
mirror image rule
requires that the acceptance must exactly match the terms continued in the offer
30
Duress includes
threats of illegal or tortious conduct, threats to report crimes, threats to sure, economic threats
31
valid
legally binding and enforceable contract
32
genuine assent
true and complete agreement
33
voidable
cancel or avoid if no genuine assent
34
recession
get back what has already been put into the contract
35
ratification
acting towards the contract as one intends to be kept by it
36
duress
when someone threats
37
undue influence
pressuring someone to do bad things
38
contractual mistakes
misrepresentation, fraud, and remedies for fraud
39
misrepresentation
statement that is material to the transaction or is fraudulent
40
untrue statement of fact
active concealment
41
Fraud and remedies for fraud
misrepresentation must be intentional or reckless, misrepresentation or concealment must injure
42
punitive damages
big money
43
unilateral mistake
occurs when one party holds incorrect beliefs about facts or law related to the contract making it still valid
44
mutual mistake
both parties have incorrect beliefs about an important fact or law not valid
45
material facts
important facts that influence the party's decisions about the contract
46
innocent misrepresentation
party to the contract doesn't know a statement they made is untrue is voidable
47
fraudulent misrepresentation
party to contract knows a statement is untrue is voidable
48
fraud
misrepresentation but with 2 elements
49
consideration
person demands must receive to make her promise legally binding, must include promise, contract exchanges and legal value
50
promise, act, or forbearance
refrain from doing something
51
contract exchanges
promise and promissee
52
nominal consideration
token amount identified in the written contract when parties either cannot or don't wish to state the amount precisely ex: put one dollar
53
consideration definition
distinguishes a contract promise from a promise to make a gift
54
gift
transfer of ownership without receiving anything in return
55
legal value
change in the legal position of a party as a result of a contract
56
illusory promise
a contract contains a clause that allows you to escape the legal obligation (if I have time)
57
existing duty
promise to do something already obligated to by law or prior contract
58
liquidated debts
parties agree that debt exists and the amount of the debt
59
release
party settles a claim at the time the tort occurs the liability is unliquidated because the extent of damages is uncertain
60
past performance
contractual bargaining takes place in the present for immediate future performance by both parties and cannot serve as consideration for a later promise
61
exceptions to their requirements of consideration
promissory estoppel
62
promissory estoppel
prevent promises from stating in court that didn't receive consideration or their pormises "a promise to make a gift generally isn't legally enforceable"
63
What is capacity?
under disaffirmance protect party is to receive whatever they have put into it
64
contractual capacity
ability to understand the consequences of a contract
65
age of majority to contract
age that entitled to manage their own affairs
66
minor
under the age of majority usually 18
67
necessaries
things needed to maintain life
68
emancipation
serving parent relationship
69
scope of authority
within the range of contractual acts for which organizations have authorized them to be responsible
70
Disaffirmance
refusal to be bound by previous legal commitments
71
loss of value
most states if minors are unable to return exactly what was received under contract they can still get everything back they gave
72
Contracts that cannot be disaffirmed
court approved contracts
73
Revenue license
purpose is to raise revenue rather than protect the public contracts can be valid
74
Which agreements are illegal?
agreements made without a required competency license, agreements that affect marriage negatively
75
recessions prior to an illegal act
party rescinds before the illegal act occurs then restitution will be liable
76
divisible contracts
separate consideration given for the legal and illegal party of the contract court can uphold legal parts
77
unconscibolabe
grossly unfair that parties under ordinary circumstances wouldn't accept it ex: take it or leave it, no liable alternative, overwhelming bargaining power
78
statute of frauds
a law stating that certain agreements aren't enforceable in court they are evidenced by signed writing
79
Statute of fraud requirements
name of the parties, subject matter description, price, quantity, signature, and other essential items including time or method of delivery or financing
80
types of contracts within the statute of fraud
contract for the sale of goods for $500 or more, contract to sell an interest in real property, contracts that require more than one year to complete, contracts to pay a debt or answer for another's debt, contract in which the consideration is marriage
81
contract for which consideration is marriage
signed writing is required for agreements in which one party promises to marry in return for something more than the other's promise to marry
82
How are contracts interpreted?
acknowledgment of final agreement, parol evidence rule, specific rules of interpretation where conflicting terms the later portion will guide court like added handwritten stuff
83
parol evidence rule expectations
clarify ambiguities in a written agreement, a written agreement wasn't intended to be a complete agreement, a condition necessary to the existence of the contract never occurred, if fraud forgery, or mistake occurred
84
The transfer of contract rights and duties
assignable rights, non-assignable rights
85
assignable rights
the party gave contractual duties to another person getting the same outcome
86
non assignable rights
contractual rights may not be assigned if performance requirements could be materially changed as a consequence
87
discharge of contractual obligations
by performance, by subsequent agreement, operation of law
88
novation
everyone has to agree to change the contract
89
assignment
legal action where a party to a contract transfers to another person their rights to the benefits of a contract
90
breach of contract
failure to provide complete performance
91
substantial performance
just about all the duties are performed but minor duty remains
92
alteration
a material change in terms of a written contract without the consent of the other party to discharge the contract alteration must be materially made intentional
93
Remedies possible for breach
remedy for a minor breach, remedies for a major breach, money damages like compensatory, punitive, nominal, spefiic performance
94
recission and restituion
canceling the contract and returning whatever has been received under it
95
factors affecting choice of remedy
conflict of remedies, the duty to mitigate, waivers, the statute of limitations, bankruptcy
96
duty to mitigate
tame steps to minimize the harm done
