Ch.4 CONTRACTS AND AGENCY LAW Flashcards
if you agree to a contract and under the terms of the contract you must begin performance immediately and perform under the contract until a stated event in the contract occurs… what type of contract have you entered?
condition subsequent contract
a contract where tom and jerry entered into a contract and tom has fully performed all of the obligations of the contract but jerry has no completed the requirements of the contract is called what?
partially executed contract
a contract where one party has performed completely but the other party has not can best be described as what?
an executory contract
the most common type of damages in a contract case are:
compensatory
jack and jill enter a contract. if both perform all of the requirements of the contract satisfactorily, the contract is:
discharged by complete performance
Austin is following peters instruction in an agency relationship. peter has given Austin the specific instructions to drive the car the most direct route using interstate highways when possible. Austin is driving from Houston to Los Angeles. When Austin arrives in El Paso the interstate is closed due to bad weather so he takes an alternate route. Austin is using:
Implied power
Court order forcing someone to perform the obligation to a contract that the party had previously agreed to do and then refused to do, is called:
an equitable remedy called specific performance
if Mary is legally crazy but has not been so determined by the courts until after she enters the contract, the contract as to Mary is:
voidable
an illusory contract is:
no real commitment to contract
To be voidable, a mistake must be:
A mutual mistake of material fact
Junior enters a contract to buy a car with Sleezy Sams Used Cars when he is 16 years old. if he take the car back to Sleezy Sams which is ture?
Junior has disaffirmed the contract and Junior has to pay the restitution that he can pay, if any
which of the following is not a true contract? Implied by law contract or implied by fact contract?
implied by law contract
if you are dealing with a totally disclosed agency in a contractual transaction where the agency acted within his/her scope of the agency, who along with the third party is liable under the subsequent contract?
Principal
Assuming you live in a minority jurisdiction, if Mary offers you $100 to walk across a high wire from the Wehner Building to the Horticulture Building, when do you accept the unilateral offer?
when you complete a substantial amount of the trip across the high wire
What facts must be present to give rise to an Agency by Estoppel?
The Principals actions or inactions must lead a reasonable third party to believe that the Agency has the Principals authority
If you sell your heard of cows at a normal cattle auction and there are several bids on your cattle, you are:
an offeree and involved in a with reserve sale
what MUST be in writing?
A contract that cannot be performed in a year and an earnest money contract to sell your house
You get the chance to go to Italy for study abroad but you have a lease. You get one of your friends to take over your lease. If you get the landlord to release you from the lease and substitute your friend for you in the lease, the landlord has:
Discharged your contractual obligations and entered into a novation
An example of a situation where the law has determined that there is no legal offer is:
Normal advertisemnets
What is an element to an offer?
genuine and real intent on the part of the offeror, definite terms and conditions, and communication of the offer to the offeree
What is an expressed contract?
written or oral… states what needs to be done or what cant be done
What are Quasi contracts?
not a true contract… “sort of” a contract/almost a contract.
Implied-in-law contracts
a. Judge/law implied the contract and judge fills in the missing elements
b. rare
c. not a real contract unless a judge says it is
d. stupid people use this. last option. probably will lose
e. legally enforceable required element to a contract is missing and one is asking the judge to act like it is there
EXAMPLE: yard work without a permit
What is an unconditional contract?
one must perform contract. if entered into contract, one has to do it.
What is a conditional contract?
no duty to perform if condition not met.
- conditional subsequent: do the work until the job is done (condition has occurred and contract is over)
- conditional precedent: something has to occur to make the contract obligation arise, if never happens, then don’t have to do it
- conditional concurrent: I don’t have to do it until you do it.
What is a Bilateral contract?
a mutual exchange of legally forceable promises
- offeror: party making the offer
- offeree: party to whom the offer is made
- promisor: promise to do or not do something
- promisee: party to whom promise is made
What is a Unilateral contract?
offeree accepts the offer by complete performance of the offer. don’t respond back with a promise. not a promisor, just does it. never promised to do it.
-no contract until all work has been done by the offeree…anytime prior to that the offeror can say nvm.
What is the enforcement of Bilateral contract?
once promise is made by the offeree
What is the enforcement of Unilateral contract?
once performance is performed by offeree
What is executory contract?
not fully performed by either party
what is executed contract?
contract has been fully performed by all parties
what is a voidable contract?
its valid, one of the parties has the right to avoid contractual obligations without incurring legal liablity
is an unenforceable contract valid?
yes but it can no longer be enforced… something occurs to make contract unenforceable.
EXAMPLE: changing the law
is a void contract really a contract?
no. its not a contract at all. no legal obligation on any of the parites
What’re the elements of a contract?
- Agreement
- offer -acceptance - Consideration
- Capacity (by CL child doesn’t have capacity)
- Legality
- Genuine & real asset to the contract (wanted to accept)
- Some contracts must be in writing
Do states like the elements of a contract in different ways?
yes. Texas elements are
offer, acceptance, meeting of the minds, each party must consent to the terms, if it must be in writing then executed or delivered with the intent that it be mutual and binding, consideration, legality, capacity (in that order)
What is an offer?
promise to enforce an agreement
What’re the elements of an offer?
Clear manifestation of intent, definite terms and conditions, communication of the offer…EXAMPLE: must know of reward offer to collect the reward
What’re the ways to terminate an offer?
by the person or by the law
What does it mean to terminate an offer by the person?
- Revocation: offeror takes back the offer prior to acceptance by the offeree
- Rejection: offeree says no
- Lapse of time: stated time expires, reasonable time passes, option contract
- Counteroffer: rejection, new offer, parties switch
What does it mean to terminate an offer by law?
Intervening illegality… change in law terminate offer, sunject of offer is destroyed, insanity or death of offeror or offeree
What’re the requirements of accepting an offer?
must be unconditional, exact, mirror image rule
True or false: performance is acceptance in unilateral contracts
TRU
What is legal detriment?
an act, promise to act, or refraining from an act, which not legally obligated to do
What is legal benefit?
legal right acquired by promise due to promisees legal detriment
What is adequacy of consideration
courts not interested, courts will not bail you out of a dumb deal
Does illusory promise have a contract?
no contract and no real commitment
What is promissory estoppel? (detrimental reliance)
no consideration in promise
What is contractual capacity?
the ability of contracting party to understand that a contract is being made and to understand its general nature
What does disaffirmance mean?
minor voids contract, can be by words or actions
what does ratification mean regarding minors?
minor accepts contract, can be by words or actions
True or false: if intoxicated at the time of entering into a contract, is the contract voidable?
yes TRUU
What is exculpatory agreement?
releases one party from consequences of wrongful acts or negligence, violates public policy
What are the elements of Fraud?
misrepresentation, intent (attempt to deceive), justifiable reliance on misrepresentation, innocent party injured
