Chapter 10- Nature And Terminology Flashcards

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0
Q

Contract

A

A promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. A legally binding agreement.

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1
Q

Bilateral contract

A

“A promise for a promise”. A type of contract that arises when a promise is given in exchange for a return promise.

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2
Q

Executed contract

A

A contract that has been fully performed on both sides

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3
Q

Executory contract

A

A contract that has not been fully performed by the parties

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4
Q

Express contract

A

The terms of the agreement are fully and explicitly stated in words, oral or written.

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5
Q

Formal contract

A

Contracts that require a special form or method of creation (formation) to be enforceable.

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6
Q

Implied in fact contract

A

A contract that is implied from the conduct of parties. The conduct or actions of the party, rather than words, creates and defines the terms of the contract.

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7
Q

Informal contract

A

Also called simple contracts, is a contract that does not require a specialized form or formality in order to be valid.

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8
Q

Objective theory of contracts

A

A theory under which the intent to form a contract will be judged by outward, objective facts (what the party said when entering into the contract, how the party acted or appeared, and the circumstances surrounding the transaction) as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions.

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9
Q

Offeree

A

The party to whom the offer is made

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10
Q

Offeror

A

The party making the offer

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11
Q

Promise

A

A persons assurance that the person will or will not do something about

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12
Q

Promisee

A

The one whom the promise was made

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13
Q

Promisor

A

The one making the promise

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14
Q

Quantum meruit

A

Latin meaning “as much as he or she deserves. Essential describes the extent of compensation owned under a contract implied in law.

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15
Q

Quasi contract

A

Contracts implied in law, are not actual contracts. Fictional contracts created by courts and imposed on parties in the interests of fairness and justice.

16
Q

Unenforceable contract

A

A contract that cannot be enforces because of certain legal defenses against it.

17
Q

Unilateral contract

A

“A promise for an act”. A contract that results when an offer can only be accepted by the offeree’s contract.

18
Q

Valid contract

A

Has the elements necessary to entitle at least one of the parties to enforce it in court.

19
Q

Void contract

A

No contract at all. No contract at all or there is a contract without legal obligations.

20
Q

Voidable contract

A

One party has the option of avoiding or enforcing the contractual obligation.

21
Q

Sources of contract law

A

Common law governs all contacts except when it has been modified or replaced by statutory law. I.e. UCC, administrative agency regulations.

Contracts relating to services, real estate, employment, insurance- COMMON LAW

sale and lease of goods- UCC

22
Q

Function of contract law

A

The formation and enforcement of agreements between parties.

In latin: pacta sunt servanda = “agreements shall be kept”

23
Q

Requirements of a valid contract

A
  1. Agreement: includes offer and acceptance
  2. Consideration: promises made by the parties to the contract must be supported by by legally supported and bargained for consideration
  3. Contractual capacity: the law must recognize them as possessing characteristics that qualify them as competent
  4. Legality: must accomplish a legal goal
24
Q

Defenses to the enforceability of a contract

A
  1. Genuineness of assent: the consent of both parties must be genuine. (Fraud, undue influence, mistake, duress)
  2. Form: must be in whatever form the law requires. I.e. Some must be in writing
25
Q

Plain meaning rule

A

When a contracts writing is clear and unequivocal, a court will enforce it according to its obvious terms. The meaning of the terms must be determined from the face of the instrument- from the written document alone

26
Q

Extrinsic evidence

A

Any evidence not contained in the document itself.