Business Law- Chapter 9 Flashcards
Legally Enforceable Contract
A contract in which if one party fails to perform as promised, the other party can use the court system to enforce the contract and recover damages or other remedy.
Offeror
The party who makes an offer to enter into a contract.
Offeree
The party to whom an offer to enter into a contract is made.
Elements of a Contract
Agreement, consideration, Contractual capacity and lawful object.
Common Law of Contracts
Contract law developed primarily by state court.
Uniform Commercial Code (UCC)
A comprehensive statutory scheme which includes laws that cover aspects of commercial transactions.
Restatement of the Law of Contracts
A compilation of model contract law principles drafted by legal scholars. The Restatement is not law.
Objective Theory of Contracts
A theory that says the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.
Uniform Computer Information Transactions Act (UCITA)
A model act that establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.
Bilateral Contract
A contract entered into by way of exchange of promises of the parties.
Unilateral Contract
A contract in which the offeror’s offer can be accepted only by the performance of an act by the offeree; a promise for an act.
Formal Contract
A contract that requires a special form or method of creation.
Informal Contract
A contract that is not formal.
Valid Contract
A contract that meets all the essential elements to establish a contract; a contract that is enforceable by at least one of the parties.
Void Contract
A contract that has no legal effect; a nullity.
Voidable Contract
A contract in which one or both of the parties have the option to avoid their contractual obligations.
Unenforceable Contract
A contract in which the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract.
Executed Contract
A contract that has been fully performed on both sides.
Executory Contract
A contract that has not been fully performed by either or both sides.
Express Contract
An agreement that is expressed in written or oral words.
Implied-in-Fact Contract
A contract in which agreement between parties has been inferred from their conduct.
Quasi-contract (implied-in-law contract)
An equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed. The doctrine is intended to prevent unjust enriched and unjust detriment.
Equity
A doctrine that permits judges to make decisions based on fairness, equality, moral rights and natural law.
