Chapter 6 Flashcards

1
Q

Acceptance

A

An agreement by one party to the terms of the offer made by another

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2
Q

Bilateral contract

A

A contract in which there is an exchange of promises, both parties assume an obligation

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3
Q

Capacity

A

An element of a valid contract, parties to a contract must be legally capable of understanding and entering into the agreement

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4
Q

Contract

A

A voluntary exchange of promises creating obligations that, if defaulted on, can be enforced and remedied in the courts

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5
Q

Consensus

A

An element of a valid contract, both parties must objectively know and agree to its terms through an offer and acceptance

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6
Q

Consideration

A

An element of a valid contract, the price one is willing to pay for the promise set out in the offer

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7
Q

Counteroffer

A

A new offer the proposal of which rejects and terminates the offer available until then

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8
Q

E-commerce

A

Commercial activity using electronic communication

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9
Q

Express contract

A

A contract in which the parties have expressly stated their agreement, either verbally or in writing

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10
Q

Formal contract

A

An agreement under seal

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11
Q

Freedom of contract

A

The parties to a contract are generally not restricted as to the terms of their contractual agreement

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12
Q

Gratuitous promise

A

A one sided agreement that the courts will not enforce

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13
Q

Illegal consideration

A

A promise to commit an unlawful act or to do something against public policy which is not valid consideration and will not be enforced by a court

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14
Q

Illegal contract

A

A contract that is void because it involves the performance of an unlawful act

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15
Q

Implied contract

A

An agreement inferred from the conduct of the parties

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16
Q

Invitation to treat

A

An invitation to engage in the bargaining process

17
Q

Legality

A

An element of a valid contract; the object and consideration of the contract must be legal and not against public policy

18
Q

Mental incompetence

A

When a person cannot understand the nature or consequences of their acts

19
Q

Offer

A

A tentative promise to do something if another party consents to do what the first party requests

20
Q

Parol contract

A

A contract that may be verbal or written but is not under seal; called a simple contract

21
Q

Past consideration

A

Something completed before an agreement is made; it is not valid consideration

22
Q

Postbox rule

A

A principle that a mailed acceptance is effective when and where it is dropped into a mailbox

23
Q

Quantum meruit

A

A reasonable price paid for requested services

24
Q

Quasi-contract

A

A contractual relationship involving a request for goods and services where there is no agreement on price before the service is performed; courts impose an obligation to pay a reasonable price in these situations

25
Revocation
Withdrawal of an offer before acceptance (must be communicated to the offeree)
26
Simple contract
A written or verbal contract not under seal; also called parol contract
27
Standard form contract
A contract with fixed terms prepared by a business
28
Unenforceable contract
An otherwise binding contract that the courts will not enforce, such as a contract that does not satisfy the Statute of Frauds
29
Unilateral contract
A contract formed when one party performs what has been requested by the other party; there is a promise followed by an act, but not an exchange of promises
30
Valid contract
An agreement that is legally binding on both parties
31
Void contract
An agreement that is not legally binding because an essential element is missing
32
Voidable contract
An agreement that has legal effect but that one of the parties has the option to end