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The Best Review On The Planet > Business Law Contracts > Flashcards

Business Law Contracts Flashcards

1
Q

What is a contract?

A

A contract is any agreement enforceable by law
-Not all agreements are contracts.

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2
Q

The Formalist Theory

A

Courts study the parties actions/ words to see if there was a “meeting of the minds”
-Relies on the form of agreement and certain fixed elements

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3
Q

6 Elements of a Contract

A
  1. Offer
  2. Acceptance
  3. Genuine agreement
  4. Capacity
  5. Consideration
  6. Legality
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4
Q

6 Elements of a Contract: Offer

A

-A proposal by one party to another intended to create a legally binding agreement

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5
Q

The person who makes an offer

A

Offeror

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6
Q

The person who receives the offer

A

Offeree

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7
Q

3 basic requirements to an offer

A
  1. Made Seriously
  2. Definite and Certain
  3. Communicated to the offeree
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8
Q

Invitations to Negotiate/Bargain

A

-Ads in newspapers, magazines, etc.
-Invitation to MAKE an offer

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9
Q

6 Elements of a Contract: Acceptance

A

The second party’s unqualified willingness to go along with the first party’s proposal

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10
Q

2 Requirements of Acceptance

A
  1. Unconditional Acceptance
  2. Methods of Acceptance
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11
Q

Unconditional Acceptance

A

“Mirror Image Rule” states that the terms of the original offer must not be changed in any way

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12
Q

Methods of Acceptance

A

-The time when an acceptance takes place is important- that’s when it comes into existence

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13
Q

Mail Box Rule

A

-An acceptance that is sent over long distances is effective when it is sent

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14
Q

6 Elements of a Contract: Genuine Agreement

A

A valid offer that is met by valid acceptance

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15
Q

6 Elements of a Contract: Capacity

A

The legal ability to enter a contract
-Must be adults of sound mind

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16
Q

6 Elements of a Contract: Consideration

A

-The exchange of things of value
-Both sides receive some benefit

17
Q

6 Elements of a Contract: Legality

A

-People can only enter contracts for legal purposes; not for legal acts

18
Q

Two types of contracts

A

Bilateral and unilateral

19
Q

Bilateral Contract

A

-BOTH parties make a promise

20
Q

Unilateral contract

A

-One person promises to do something; the other party can accept only by doing what is stated

21
Q

Valid contract

A

-Legally binding; satisfies all of the laws requirements

22
Q

Void contract

A

-No legal effect
-Purpose is illegal/no legal authority to form a contract

23
Q

Voidable contract

A

-The law permits one party to terminate the agreement because of some defect

Ex: A minor

24
Q

Unenforceable contract

A

-One the court will not uphold
-Some rule of law prevents enforcing it

25
Q

Express contract

A

-Stated in words: oral or written
-All terms are explicitly stated

26
Q

Implied contract

A

-Formed in whole or in part from the actions/conduct of the parties

27
Q

5 Ways of Termination of an Offer

A
  1. Revocation
  2. Rejection
  3. Counteroffer
  4. Expiration of time
  5. Death or insanity
28
Q

Termination of an Offer: Revocation

A

The taking back of an offer by the offeror

29
Q

Termination of an Offer: Rejection

A

Refusal of an offer by the offeree; brings the offer to an end

30
Q

Termination of an Offer: Counteroffer

A

Ends the first offer: offeree creates a new one where the offeror can accept/reject again

31
Q

Termination of an Offer: Expiration of Time

A

-The offeror sets a time limit for the acceptance of the offer: MUST BE HONORED!

32
Q

Termination of an Offer: Death or Insanity

A

-If the offeror dies/becomes insane before the offer is accepted, the offer comes to an end

33
Q

E contracts

A

-Must meet all elements of a paper contract
-Equivalent to paper signed signatures
-Replying “YES” is legally binding

34
Q

Uniform Electronic Transfer Act

A

-Takes place of mailbox rule
-Acceptance becomes effective when sent

35
Q

E sign Act

A

-an electronic signature is valid as a signature on paper
-E doc can be enforceable as a paper contract

36
Q

E sign Act EXCEPTIONS

A

-Court papers, divorce papers, evictions, wills, etc.

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