Chapter 11: Contract Law Flashcards
bilateral contract
a type of contract that arises when a promise is given in exchange for a 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 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, including the testimony of the parties, the testimony of the witnesses, and additional agreements and 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 contracts
a contract that by law requires a specific form, such as being executed under seal, to be valid.
implied contracts
a contract formed in whole or in part from the conduct of the parties (as opposed to an express contract)
informal contracts
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 as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions. Objective facts might include what a party said when entering into the contract, how a party acted or appeared, and the circumstances surrounding the transaction.
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
quasi contracts
a fictional contract imposed on parties by a court in the interest of fairness and justice; usually, quasi contracts are imposed to avoid the unjust enrichment of one party at the expense of another.
unenforceable contract
a valid contract rendered unenforceable by some statute or law
unilateral contract
a contract that results when an offer can be accepted only by the offeree’s performance.
valid contract
a contract that results when the elements necessary for contract formation (agreement, consideration, contractual capacity, and legality) are present.
void contract
a contract having no legal force or binding effect
voidable contract
a contract that may be legally avoided (canceled) at the option of one of the parties.
