ch.14 Flashcards
What is a contract?
A set of legally enforceable promises
What are the elements required for contract formation:
- agreement
- consideration
- contractual capacity
- legal object
- defenses to contract enforcement
What is an agreement?
offer and acceptance
What is a consideration?
value given by both parties
What is contractual capacity
legal ability to enter into a binding agreement
What is a legal object
contract cannot be illegal or against public policy
What are the two defenses to contract enforcement?
- Lack of genuine assent
- Lack of proper form
When should contracts be interpreted to give effect to parties’ intentions?
At the time they
entered into contract.
If multiple interpretations are possible, which one should be adopted.
The interpretation that would make the contract lawful, operative, definite, reasonable, and capable of being carried out
If contract contains ambiguity, how should the judge interpret it?
judge should interpret it against the interests of drafter.
Do handwritten provisions prevail over preprinted terms?
yes
Do numerals prevail over numbers written in words?
No
(it’s the opposite)
Do specific terms prevail over general terms?
yes
How are technical words generally interpreted?
In accordance with industry standard
What are the two things an agreement require?
- Valid offer
- Valid acceptance
