Chap 11-14 (midterm) Flashcards
Unconscionable
Terms are so unscrupulous or grossly unfair as to be “void of conscience”
Bilateral contract
A promise for a promise
Covenant not to compete
A restrictive covenant which does not allow one to conduct business for a certain period of time and in a certain geographical area
Mail Box Rule
Acceptance takes effect at the time the offeree sends or delivers the communications via the mode expressly or impliedly authorized by the offeror
Mirror Image
It requires the offeree’s acceptance to match the offeror’s offer exactly to mirror the offer.
What are the three elements of an offer
- Present contractual intent
- Definite and reasonable terms
- Communication to the offeree
What are the four terms for an offer to have “definite and reasonable” terms?
- Parties
- Subject matters
- Time and manner of performance
- Price
Name 3 ways to terminate an offer by acts of the parties
- Rejection
- Revocation
- Counteroffer
Name 3 categories that involve the capacity to enter into a contract.
Intoxication, minor, and mental incompetence
Quasi-contract
It is a fictional “contract” that courts can impose on the parties and equitable remedy. It is imposed by the courts to avoid unjust enrichment of one party at the expense of another
Forbearance
The refraining from action that one has a legal right to undertake.
Accord and satisfaction is when:
A debtor offers to pay and a creditor accepts a lesser amount than the creditor originally claimed was owed.
What is an illusory contract?
It is terms that are so uncertain that it fails to bind the parties to a contract. (an illusion)
What is a firm offer (or an option contract?)
An offer that is irrevocable because it is supported by consideration
Generally, how would you classify an advertisement – the formation of a contract
Negotiations (not an offer)
Besides offer, acceptance, and consideration, what are the other two concepts that are needed to have a valid contract?
Capacity and a legal purpose
Unliquidated debt
A debt of which the amount is not settled and reasonable persons may differ over the amount owed
Executory contract
A contract that has not been fully performed by the parties
What is the result if a debtor writes payment in full on a check on an unliquidated debt and the creditor cashes the check
It creates an accord and satisfaction and extinguishes the debt
Quantum meriuit
It is based on the theory that individuals should not be allowed to profit or enrich themselves inequitably at the expense of others
When does the ueta applies to a contract when the parties do what action?
Each party agrees to conduct transactions by electronic means
What is promissory estoppel?
- There must be a clear and definite promise
- The promisor should have expected that the promise should rely on the promise
- The promisee reasonably relied on the promise by acting or refraining from some act
- The promisee’s reliance was definite and resulted in substantial detriment
- Justice will be served by enforcing the promise
What is the result if a debtor writes payment in full on a check on an unliquidated debt and the creditor crosses out the words payment in full and cashes the check
It creates an accord and satisfaction extinguishes the debt
What does UETA stand for?
Uniformed electronic transactions act
