Test2 Flashcards
(48 cards)
List the essential elements of a contract?
1) offer
2) acceptance
3) consideration
4) capacity
5) intention to be bound/reasonable expectation
What is an offer?
A tentative promise to contract if the other party accepts and fulfills agreement
What is an invitation to treat?
Invitations to begin a bargaining practice leading to a contract, car brochures
What is acceptance?
A commitment by the offereee to terms of offer. Accepts the offer the way it is given. Occurs by performance, signings
What is consideration?
Both parties must benefit from the deal and this is the exchanges of those required benefits
What is capacity?
People incapable of negotiating a contract ; infants, insanity and intoxication
Intention to be bound/reasonable expectation?
Parties must intend legal consequences to result from contract
Legality?
Contract has to be legal, to commit a crime or illegal acts those contracts are void
If suing for contract law in tort what will you receive?
Compensation for your losses
Same position as before tort occurred
“But for” test
$
If suing in contract what will u get
Expectation damages
An offer happens after what?
The 3 p’s : parties,property,price
What are exemption clauses?
They limit the liability of the offerer. Must be brought to offerees attention,
If someone makes a counter offer what happens to the orginal offer?
It ends and a new offer is put forth
What is a gratuitous promise?
A gift. Where there is no consideration or benefit to one party it is assumed a gift.
What is quantum meruit?
Refers to services requested. You will be rewarded in court for what you earned,reasonable amount. If a contract was cancelled half way thru a job you will be compensated the half you earned
What is a guarantee
A guarantee is a contract where one person can be held for the money if the debtor fails to pay. Must be in writing, signed under seal because it guarantees the person signing has consideration. Also called co signing
What is fresh consideration?
It is a new extra benefit to both parties to the offer, usually a side contract
What is promissory estoppel?
You cannot sue based on a promise that you’ve made. It’s an exception to the gratuitous promises. The person who made the promise has to sue.
What does the BBC infants act state about capacity?
All contracts are unenforceable to the infant unless under statute -> student loans
Two limitations to legality?
Territory and time
What is a reasonable expectation?
What would the reasonable option be when 2 parties are confused
A formal written requirement is needed for what?
Land lease for more than 3 years,
Guarantees
Contract that does not require performance for atleast a year
What is a mistake?
When both parties have different understandings of the wording
What is a shared mistake?
When both parties have both made the same error the contract is void
