3.3 - Law of Contract Flashcards
what is an offer?
a promise made to a specific person/group
what are 2 exceptions to an offer?
standing offer - open to many, can be accepted by anyone
invitation to treat - less than a legal offer, request for offers
if a party dies or goes insane, what happens to an offer?
it gets released/expired
if there’s a counter offer, what happens to the original offer?
it’s terminated
if the offer specifies how it should be made, how should the offeree accept?
by the method specified
if the offer doesn’t specify how it should be made, how should the offeree accept?
by the same method offer was given
can you accept an offer orally?
yes
when is an offer’s acceptance considered effective?
when communicated, not received
how/when can you accept an offer by mail?
yes, accepted when placed in mailbox
if a contract is executed under seal, do you have to have a consideration
no
what is a consideration?
when offeror and offeree exchange something to make contract enforceable
doesn’t have to be money
is past consideration, consideration?
no
can revocation be made prior to or after acceptance?
no
unless consideration is paid to keep an offer open for a specific time, can revocation be made at any time prior to acceptance?
yes
can you promise to do something in the future for consideration?
yes
is consideration an option agreement?
no, options agreement is a separate consideration to keep the offer open
what is a legal object?
a legal idea/contract
what is considered an infant?
someone under 19
what is a legal intention?
serious intention to create a contract
if a contract that was signed when a person was an infant is still performed when that person is older, is it still enforceable?
yes as long as both parties are still performing it
what is duress?
an actual physical act where the party to the contract has been robbed of their free will
what is undue influence?
any improper or wrongful constraint, manipulation, or persuasion whereby the will of a person is overpowered and he is induced to do or refrains from doing an act which he would not do or would do if left to act freely
what is a latent defect?
can’t be discovered upon reasonable inspection
must be disclosed, in a disclosure must be separate from any agreement of purchase and sale
what is a patent defect?
should be discovered upon reasonable inspection
buyer beware (caveat emptor)
doesn’t have to be disclosed
what is the main difference between a defect and a stigma?
defect’s impact can be objectively determined (through appraisals)
stigma’s effect depends on an individual’s subjective consideration (i.e. murder house)
what is a common mistake?
when both parties make the same mistake about the fundamental term of a contract
what is a mutual mistake?
both parties each make a different mistake (innocent)
what is a unilateral mistake?
one party is mistaken, the other party is aware but does nothing (deceit)
what is the doctrine of privity?
only the parties to a contract have the right to sue or be sued
what can & can’t a person assign under a contract?
can assign benefits, can’t assign liabilities
what is the correct order: contract, frustration, mistake
mistake -> contract -> frustration
what are the 2 types of assignment?
statutory & equitable
what is the remedy for common law for breach of contract?
damages (but the injured party does have a duty to mitigate damages - keep losses at a minimum)
what are the legal requirements for a statutory assignment?
in writing
for the whole amount
given to promissor
can equitable law be used to remedy is damages are awarded?
no
what are the 4 remedies under equitable law?
specific performance (if property is unique/has no substitutes or contract breached, has to complete an act/contract)
injunction
mandatory injunction
quantum merit (pay reasonable sum)
does an assignment terminate the original contract between the assign and the third party?
no
exception to doctrine of proivity?
assignment
