Chapter 10 Flashcards
Define a contract
A contract is an agreement between two or more persons which creates a legal obligation to do or not to do a particular thing.
In legal terms, what is a breach of contract?
Failure, without legal excuse, to perform any promise which forms the whole or part of a contract.
Duress is a situation where a person is forced into a contractual relationship against his/her will by the threat of imprisonment either to himself/herself or his/her family, or to the threat of physical force
True
A patent defect is a defect which is plainly ___ or which can be ___ during the course of a reasonable inspection
visible
discovered
In the law of contracts, ____ amounts to the unmaking or undoing of a contract from the beginning, as opposed to termination.
rescission
___ ___ is a legal term for a “subject to” clause. In contract law, it calls for the happening of some event or the performance of some act before the contract shall be ___ upon the parties.
condition precedent
binding
A hidden or concealed defect that would not be discovered during the course of a ____ inspection is considered a ___ defect.
reasonable inspection
latent defect
The legal term for the thing of value that is bargained for, and received by, each party to a contract is known as ___.
consideration
What is contained in the contract of purchase and sale?
__ contains the rights and obligations of the vendor and purchase with respect to the purchase and sale.
Describe what occurs in a counter offer.
A counter offer is a statement by the recipient of the offer which has the legal effect of rejecting the offer and of proposing anew offer to the offeror (who then becomes the recipient of the “new” offer)
A contract is considered void if:
it has never had any legal existence or effect and is not capable of being enforced
What is an invitation to treat?
A type of advertisement used to induce the public or an individual to submit their own offers. An invitation to treat is not an offer capable of acceptance to form a contract
TF? Revocation is the term for the cancellation of an offer communicated by the offeror to the offeree prior to acceptance.
true
___ is a legal doctrine that provides that where the existence of a specific thing is necessary for performance of the contract, the duty to perform is discharged if the thing, for reasons beyond anyone’s control, is no longer in existence at the time for performance.
frustration
A condition can be described as
A fundamental term of the contract, a breach of which allows the injured party to terminate the contract and/or sue for damages or specific performance
