Chapter 10 - Forming a Contract Flashcards
Offer
Proposal of a deal
Acceptance
Party responds in certain way
Consideration
Exchange between parties
Legality
Contract must be for a lawful purpose
Capacity
Parties must be of sound mind
Consent
Trickery and force cannot be used in formation of contract
Writing
Some contracts must be in writing
Remedy
Court will award money or other relief
Bi-lateral Contract
Both parties make a promise
Unilateral Contract
One party makes a promise and other can only accept by doing something
Executory Contract
Agreement in which one or more parties have not fulfilled obligations
Executed Contract
Agreement where all parties have fulfilled their obligations
Unenforceable Agreement
Court declares that law prevents enforcement of contract
Voidable Contract
Can be terminated due to a defect
Void Agreement
Agreement that neither party may legally enforce
Express Contract
Agreement with all terms explicitly stated
Implied Contract
Contract where words and conduct of parties indicate intent of an agreement
Common Law
Common principles developed by courts
Uniform Commercial Code
Developed to govern many aspects of commerce
Goods
Things that are movable, other than money
Promissory Estoppel
Remedy for defendant in case of no valid contract
Quasi-Contract
Remedy for plaintiff in case of no contract
Revocation
Cancellation of offer
Mirror Image Rule
Contract doctrine that required acceptance to be on exactly same terms as the offer
Mailbox Rule
Acceptance is effective upon dispatch
