Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MGMT 211 Swim > Chapter 4 > Flashcards

Chapter 4 Flashcards

1
Q

Contacts have 2 functions which are:

A

Performance

Risk Allocation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Are all promises contracts?

A

No, promises must have legal requirements to be a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Expressed v. Implied Contracts

A

Expressed Contracts
-written or oral contracts

Implied Contracts

  • inferred from conduct of parties
  • Ex: sitting in barbers chair and you know you have to pay at the end
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Quasi Contracts

A

-not true contract

  • RARELY ever win in court
  • judge fills out missing element
  • prevents unjust enrichment

Ex: Keith Swim doesn’t pay you after you do his yardwork because you don’t have a yardwork permit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Unconditional Contracts

A
  • must perform duty

- no matter what

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

3 Types of Conditional Contracts

A

Conditional Subsequent

  • contract begins immediately
  • contract ends if specified event happens

Conditional Precedent
-contract begins if/when specified event occurs first

Conditional Concurrent
-contract doesn’t begin until other party does something
-you don’t have to perform until they perform or vice versa
Ex: buying a house

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Unilateral v. Bilateral Contracts

A

Bilateral Contracts
-offeree is a promisor
-offerer is a promisor
Ex: You promise to paint my house and I promise to pay you

Unilateral Contracts
-only offer is a promisor
-offeree accepts the contract by 100% of job
Ex: You complete all 20 things on Keith Swim’s yard work to-do list

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How does enforcement differ from Unilateral Contracts and Bilateral Contracts?

A

Unilateral
-enforced once offeree fully completes job
Bilateral
-enforced once promise is made by offeree

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Executed Contracts vs. Executory Contracts

A

Executed Contract
-contract is 100% done

Executory Contract
-contract not fully completed by 1 or both parties
Partially Executed Contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Valid Contract, Void Contract, Voidable Contract, and Unenforceable Contracts

A

Valid Contract

  • legal
  • enforceable by law

Void Contract

  • illegal
  • not enforceable by law

Voidable Contract

  • 1 or both parties can terminate contract
  • can terminate with no liability

Unenforceable Contract
-contract was once legal and enforceable
-no longer legal and enforceable
-can be sued for time when Unforceable Contract was once legal
Ex: law changes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Most common type of law suit in American Court System filed?

A

Breach of Contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Who makes Contract Law

A
  • determined by states
  • vary from state to state
  • becoming more uniform
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

6 Elements to a contract

A 
Mutual Agreement
Consideration
Capacity 
Legality
Genuine and real assent to the contract
Some contracts must be in writing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Element of a contract - Mutual Agreement

What are the two elements of a Mutual Agreement

A

Offer

Acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Explain the parts to an offer

A

Intent
-must intend to bind other party to legal obligation

Definite Terms and Conditions

  • clearly stated
  • must define contract length (quantity)

Communicated to the Offeree
-offeree must know about reward to receive money for return of lost dog

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

5 ways an Offer can be terminated

A

Revocation

  • offeror takes back his offer
  • ONLY if offeree hasn’t accepted yet

Rejection
-offeree says no

Lapse of time
-Option Contract (promise to keep contract open to a person for a specified amount of time… can’t sell to someone else)

Counteroffer

Termination by law

  • law makes contract illegal
  • offeree goes insane or dies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the term for when a law makes a contract illegal

A

Intervening illegality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Explain the element of a contract called Consideration

A
  • something of value given up in exchange for another
  • Legal Detriment
  • Legal Benefit
  • courts do not care if Fair Trade or not
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the two parts of Consideration element of a contract?

A

Legal Detriment

  • promise to give up a legal right
  • or refrain from act

Legal Benefit

  • legal right to something
  • is acquired through the promise
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

All minors can void out of a contract except for contracts concerning these 4 things:

A 
Enlistment in the Military 
Necessities 
Marriage Contracts
Statues
 -banking, insurance, public transportation, student loans
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Illusory Promises

A
  • fake promise
  • looks like both parties are binded but only one is

Ex: I promise to give you supplies for your business on the 31st of each month and you promise to pay me $1500 each month

Some months I won’t have to perform, but you must pay EVERY month

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Does a minor owe restitution when they Disaffirms (gets out) of contract

A

Depends
-no restitution owed

  • can have to pay restitution by returning item loaned
  • minor doesn’t have to pay for missed payments though
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does minor Ratification mean

A

Means a minor stays in contract when they turn 18

  • ratifies by continuing performance (Ex: keep making payments)
  • can ratify orally
24
Q

Misrepresentation of Age by a minor - What happens when they want out of contract

A
  • states usually allow them to disaffirm

- growing trend to keep minor binded to contract

25
Q

Intoxicated People - Contract Capacity

A
  • if drunk during contract
  • can void out when sober
  • hard to prove DRUNK
  • have to be so drunk you did not even understand what you were doing
26
Q

Adjudicated Insane and Unadjudicated Insane

A

Adjudicated Insane

  • person previously proved to be insane
  • insane person can void contract anytime

Unadjudicated Insane

  • person proved to be insane after they enter contract
  • insane person can ratify (continue) contract
  • insane person can void contract
  • insane person owe restitution if void contract
27
Q

Two types of contracts that violate Legality element of a Contract

A

Unconscionable Contract
-contract that is grossly unfair to one party over other

Exculpatory Agreement
-contract that releases party from consequence resulting from negligence or wrongful acts
EX: Airline is not responsible if their pilot gets drunk and plane goes down and everyone dies

28
Q

Explain Genuine and Real Assent to the Contract

A

Parties must freely and voluntarily enter into a contract

Mistake
Fraud
Duress
Undue Influence

29
Q

Concerning Genuine and Real Assent to the Contract

What happens if there is a Mistake

A

Unilateral Mistake (one party is mistaken)

  • court offers no relief to mistaken party
  • mistaken party CANNOT void
  • given no fraud took place
Bilateral Mistake (both parties mistaken)
 -Mutual mistake of value --- no relief
  • Mutual mistake on material fact(wording) in contract)
    • either party can void contract
    • relief is given to either party depending on mistake
30
Q

Explain Fraud and the 4 ways it’s classified

A

Misrepresentation
Intent to deceive other party
Justifiable Reliance on misrepresented Information
Innocent party Injury

31
Q

Explain Duress

A

Forcing someone to sign a contract against their will

Ex: breaking their leg

32
Q

Undue Influence

A

-mentally taking control of another’s mind

Ex: Having sex with 99 year old man so he puts you in his will

33
Q

5 ways contracts are required to be written under the Statue of Frauds

A
  • items over $500
  • if promise cannot be performed within a year
  • if there is transfer of interest in real property
  • promise to obligations of others (promise to someone’s work that is already required by them)
  • promise made in contemplation of marriage
34
Q

Parole Evidence Rule

A

Orally evidence cannot be used to contradict written evidence

35
Q

4 exceptions to Parole Evidence Rule

A

Oral evidence can be used IF:

  • oral evidence is explaining an agreement that was made to change material fact of contract
  • oral evidence is explaining an ambiguous/incomplete part of the contract
  • oral evidence is being used to prove that the contract itself is VOID or VOIDABLE
  • oral evidence is used to fill in the gaps
36
Q

Breach of Contract/Incomplete Performance

Explain Substantial Performance and Material Breach

A

Substantial Performance

  • job is mostly done but not fully
  • still get paid for job (Payment - Damages for Incomplete work)

Material Breach

  • performance on job is TOTALLY wrong
  • innocent party gets out of contract free
  • guilty party responsible for damages
37
Q

5 Ways to Terminate a contract

A

Rescission

Novation

Accord and Satisfaction

Discharge by Impossibility

Repudiation

38
Q

Explain Accord and Satisfaction - Ways to terminate a contract

A

When neither parties can agree on the amount the other owes them

I think I owe you $200 and you think I owe you $300

Example of Accord
-I offer you $250

Example of Satisfaction

  • you accept my $250
  • terminates the contract
  • ONLY for unliquidated debt

NOTE:

If my debt to you was liquidated (I actually owe you $300)…. then you can still sue for other $50

If my debt to you was unliquidated (no way to tell the amount I owe you)… then you can’t come after me in court

39
Q

Recission

A
  • both parties agree to terminate contact without performance
  • restitution owed
40
Q

Novation

A
  • one party completely thrown out of contract
  • thrown out party REPLACED
  • new contract created
41
Q

Accord and Satisfaction

A
  • ONLY for unliquidated debt
  • parties agree to get out of contract
  • parties accept partial performance from eachother
42
Q

Repudiation

A
  • party notifies other in advance they will not perform
  • innocent party can wait and see
  • innocent party can treat contract as breached
  • innocent party can VOID out
43
Q

What is a another name for Monetary Damages?

A

Legal Damages

44
Q

What type of damages do torts and contracts have?

A

Contracts

  • Monetary Damages
  • equitable Damages
  • NO PUNITIVE DAMAGES

Torts

  • monetary damages
  • equitable Damages
  • punitive damages
45
Q

4 ways a contract can be discharged by Impossibility

A
  • subject matter of contract (ex: building) is destroyed
  • one party of a person service dies (person cannot be replaced)
  • change in law makes contract illegal
  • performance becomes commercially impractical (too expensive now)
46
Q

Which of the following is the most common when there is a breach of contract?

Compensatory Damages
Monetary Damages
Equitable Remedies

A

Monetary Damages

47
Q

3 types of Legal Damages or Monetary Damages

A

Compensatory Damages
-make victim whole again

Consequential Damages

  • cover cost incurred by victim resulting from the breach
  • after the breach costs that come up

Liquidated Damages

  • damages specified in contract before it start
  • receive these if other person breaches the contract
48
Q

4 Types of Equitable Remedies

A

Rescission and Restitution

  • undo/cancel existing contract
  • if money has already been paid from one party to other than –> Restitution is owed

Reformation
-rewrites contract to make it say what it was supposed to say

Specific Performance

  • court requires party to perform a certain way
  • RARE cause courts don’t want to supervise it

Mitigation of Damages
-requires innocent party to reduce damages they are currently incurring

EX: You rent out a house to Joe. Joe breaches the contract when he doesn’t pay rent and moves out. Joe owes you Consequential Damages (money you could be receiving right now if he didn’t breach). The court orders you to find a new tenant to keeps Joe’s damages he will pay to you down

49
Q

What are the 4 types of Agencies?

A

Agency by Agreement

Agency by Ratification

Agency by Apparent Authority (Agency by Estoppel)

Agency by Operation of the Law

50
Q

Agency by Ratification

A
  • agent is not working with principal
  • agent enters into agreement anyway with 3rd party
  • if alleged principal accepts agents actions(called ratification, then principal bound to contract with 3rd party
  • if alleged principal denies agent’s actions, then agent is bound to contract with 3rd party
51
Q

Agency by Apparent Authority (Agency by Estoppel)

A
  • agent is not working with principal and has no authority
  • agent acts like he is working with principal
  • 3rd party can bind Principal to contract even though they didn’t know about agent who was acting like he worked for the principal
  • principal has to convince 3rd party that agent is capable of representing them
  • principal can get in trouble if they don’t stop rogue agent if they know about him
52
Q

Agency by Agreement

A
  • written or oral

- if written, then it has Power of Attorney

53
Q

Agency by Operation of Law

A

-in emergencies
-law implies relationship
Ex: babysitter signs off for kid to have surgery when parents are not there

54
Q

What is a disclosed, Partially disclosed, and Undisclosed agreement?

A

Partially Disclosed

  • 3rd party knows agent represents a principal
  • 3rd party does not know principal

Disclosed

  • 3rd party knows agent represent principal
  • 3rd party knows principal

Undisclosed

  • 3rd party only knows agent
  • does NOT know agent represents a principal
55
Q

Who is liable in a Partially Disclosed and Disclosed conract

A

If agent has Actual Authority

  • principal liable to 3rd party
  • agent not liable for anything

If agent has Apparent Authority

  • principal still liable to 3rd party
  • agent is liable to principal for disobeying
56
Q

Who is liable in an Undisclosed Contract

A

If agent has Actual Authority

  • principal liable to 3rd party
  • principal must indemnify agent

If agent has No authority
-principal not liable

MGMT 211 Swim (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions