CH. 1 Flashcards
WHAT IS A CONTRACT?
A contract is a legally enforceable
agreement that meets certain specified
legal requirements between two or more
parties in which each party agrees to give
and receive something of legal value.
WHAT ARE THE ELEMENTS OF A VALID CONTRACT?
- Offer
- Acceptance
- Consideration
- Legality of subject matter
- Contractual capacity
- Contractual intent
WHAT ARE THE TYPES OF OBLIGATION
Bilateral: a bilateral contract is a
promise for a promise.
Unilateral: a unilateral contract is a
promise for an act.
METHOD OF CREATION
WHAT IS AN EXPRESS CONTRACT?
Express contract: mutual assent of the parties is
manifested in words, either orally or in writing.
METHOD OF CREATION
WHAT IS AN IMPLIED-IN-FACT CONTRACT?
Implied-in-fact contract: promises of the parties
are inferred from their actions or conduct as
opposed to specific words being used.
METHOD OF CREATION
WHAT IS AN IMPLIED-IN-LAW CONTACT?
Implied-in-law contract (also known as quasi contract): situations that look like a contract but are not because one of the requisite elements is missing
METHOD OF CREATION
WHAT IS AN IMPLIED-IN-LAW CONTACT?
Implied-in-law contract (also known as quasi contract): situations that look like a contract but are not because one of the requisite elements is missing
TYPE OF FORM:
WHAT IS A FORMAL CONTRACT?
Formal: limited group of contracts that
different states have declared valid and
enforceable if certain statutory requirements
are met.
TYPE OF FORM
WHAT IS AN INFORMAL CONTRACT?
Informal: all non-formal contracts; agreements
that meet all the requirements of valid
contracts.
TIMING:
WHAT IS AN EXECUTORY CONTRACT?
Executory contract: a contract in which one or
both of the parties still have obligations to
perform.
TIMING:
WHAT IS AN EXECUTED CONTRACT?
Executed contract: a contract that is complete
and final with respect to all of its terms and
conditions.
ENFORCEABILITY:
WHAT IS AN VALID CONTRACT?
Valid: an enforceable contract that meets all of the six
requirements
ENFORCEABILITY
WHAT IS A VOID CONTRACT
Void: a situation where there is no contract and the law
therefore does not entitle the parties to any legal
remedy.
ENFORCEABILITY
WHAT IS A VOIDABLE CONTRACT
Voidable: a contract where a party to the agreement
has the option of avoiding his legal obligation without
any negative consequences, but who could, if he wished,
affirm his obligation and thereby be contractually bound.
WHAT IS AN OPERATION OF LAW
A manner in which rights and obligations devolve on a person without the act or cooperation of the party himself or herself.
