Chapter 11 Flashcards
bilateral contract
A type of contract that arises when a promise is given in exchange for a return promise.
contract
An agreement that can be enforced in court; formed by two or more parties, each of whom agrees to perform or to refrain from performing some act now or in the future.
executed contract
A contract that has been completely performed by both parties.
executory contract
A contract that has not as yet been fully performed.
express contract
A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.
extrinsic evidence
Evidence that relates to a contract but is not contained within the document itself, such as the testimony of parties and witnesses, or additional agreements or communications. A court may consider extrinsic evidence only when a contract term is ambiguous and the evidence does not contradict the express terms of the contract.
formal contract
A contract that by law requires a specific form, such as being executed under seal, to be valid.
implied contract
A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract). Also known as implied-in-fact contract.
informal contract
A contract that does not require a specified form or formality in order to be valid.
objective theory of contracts
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 intention
offeree
A person to whom an offer is made.
offeror
A person who makes an offer.
promise
A person’s assurance that he or she will or will not do something.
promisee
A person to whom a promise is made.
promisor
A person who makes a promise.