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Common law governs all contracts except when...

It has been modified or replaced by statutory law Or administrative agency regulations...................I.e. Uniform commercial code

1

What 4 categories are governed by the common law of contracts

Services, real estate, employment, insurance

2

What contracts are governed by the UCC

Contracts for the sale and lease of goods

3

Contract law is designed to provide ..... For both buyers and sellers in hue market place

Stability, predictability, and certainty

4

Contract law assures the parties to private agreements that the promises they make will.....

That the promises they make will be enforceable

5

Why do many people keep promises

Because the parties involved
-feel a moral obligation
-it is in their moral self interest

6

Who is the person making the promise

The promisor

7

Who is the person to whom the promise is made

The promisee

8

In business law why are the rules of contract law often followed

To avoid potential disputes

9

Contract law is necessary to...

Ensure compliance with a promise or to entitle the innocent party to some form of relief

10

A contract is

An agreement that can be enforced in court

11

Who forms contracts

Two or more parties who agree to perform or to refrain from performing some act now or in the future.

12

What might happens if the contract is not followed

Party is subject to sanctions of the court
Might have to pay damages
May have to perform the promised act

13

How is intent determined..

By the objective theory of contracts, not by the belief of a party

14

A party's intention to enter into a contract is judged by a reasonable person and what 3 objective facts

1) what the party said when entering Ito the contract
2) how the party acted or appeared (intent may be manifested by conduct as well as by oral or written words)
3) the circumstances surrounding the transaction

15

Underlying motive is not important

....

16

What are the four requirements of a valid contract

1)agreement
2)consideration
3)contractual capacity
4) legality

17

An agreement is

An agreement to form a contract includes an offer and an acceptance. One party must offer to enter into a legal agreement and another party must accept the terms of the offer

18

Describe consideration

Any promises made by the parties to the contract must be supported by legally sufficient and bargained for consideration (something of value received or promised such as money to convince a person to make a deal )

19

Describe contractual capacity

Both parties entering into the contract must have the contractual capacity to do so. The law must recognize them as possessing characteristics that qualify them as competent parties.

20

Describe legality

The contracts purpose must be to accomplish some goal that is legal and not against public policy.

21

If all the requirements of a contract are met can a contract still be unenforceable?

Yes

22

What are defenses to enforceability of contracts

1)Voluntary consent
2)form

23

Describe voluntary consent

The consent of both parties must be voluntary
If a contract was formed as a result of fraud undue influence mistake or duress the contract may not be enforceable

24

Describe form as a defense

Th contract must be in whatever form the law requires

25

The party making the offer

Offeror

26

Party to whom the offer is made

Offeree

27

Whether the contract is classified as bilateral or unilateral depends on

What the offeree must do to accept the offer and bind the offeror to a contract

28

Describe a bilateral contract

When the offeree can accept simply by promising to perform
I.e. A promise for a promise
- no performance need to take place for its formation
Comes into existence the moment the promises are exchanged

29

Describe a unilateral contract

It is formed at the moment when the contract is performed
I.e,promise for an act
For example.. If you do this I'll give u ...