Ch 6 - Contract Law Flashcards
The exchange of the parties made at the same time
Present consideration
To displace in favor of another
Supercede
Oral declaration; word-of-mouth
Parol
When a contract is required by law to be in writing, the authority of an agent to enter into such a contract on behalf of the principal must also be in writing
Equal dignities rule
The legal means of canceling a contract and restoring the parties to the original positions
Rescind
A legally enforceable agreement to do (or not to do) a specific thing
Contract
An act intended to deceive for the purpose of inducing another to part with something of value
Fraud
A body of law that codifies all law relating to commercial transactions to make states law uniform
Uniform commercial code (UCC)
True or false:
The earnest money The buyer may put down is not the consideration necessary to make the contract valid
True
True or False:
The tenant still has the right to rescind the contract due to innocent misrepresentation
True
True or false:
A written contract is not supersede an oral contract
False - A written contract will always supersede an oral one
True or false:
Love and affection do not count as present consideration
True
True or false:
People of unsound mind who have been declared incompetent by a judge may not make a valid contract
True
True or false:
The existence of mutual agreement is evidenced by the words and acts of the parties indicating that there is a valid offer and an unqualified acceptance
True
True or false:
An individual can give another person the power to act on his behalf through power of attorney
True
What are the three alternatives for discharge of contract that are open to parties of a contract?
- assignment
- novation
- supervening illegality
What are four ways to describe the validity of a contract?
Valid
Void
Voidable
Vnenforceable
What are three standards in deciding the competency of those entering a contract?
- minors
- intoxication
- unsound mind
Under certain circumstances, the ______ Permits oral evidence to complete an otherwise incomplete or ambiguous written contract
Parole evidence rule
Under the _________, if neither possession nor title has passed and there is material destruction to the property, the seller cannot enforce the contract and the purchaser is entitled to his money back
Uniform vendor and purchaser risk act
When could any of these six alternatives be used by a wrong or innocent party:
- accept partial performance
- rescind the contract unilaterally
- sue for specific performance
- sue for money damages
- accept liquidated money damages
- mutually rescind the contract
In the event of breach of contract
Upon receiving an offer, what three options does an offeree have?
- agree to it
- reject it
- make a counteroffer
What are the five legal requirements to make a contract legally valid?
- legally competent parties
- mutual agreement
- lawful objective
- consideration or cause
- contract in writing when required by law
