Chapter 6 Review Flashcards
What is Contract
A legally binding agreement
What are the Four Elements of Contract
Agreement, Consideration, Capacity, Legality
A contract is a mere promise between two or more persons
True or False
False
Each party to a contract is a mere promise between two or more persons
True or False
True
Legally all contracts are agreements but not all agreements are contracts
True or False
True
The initial step toward forming a contract is to decide an the amount of consideration
True or False
False
A person can enter a contract at any age
True or False
False
What is a Bilteral Contract
A promise from one party in exchange for a promise from the other party
What is Unilateral Contract
A promise from one party in exchange for performance from the other party
What is Valid Contract
A contract that contains the essential element
Void Contract
A contract that does not contain the essential element s to a contact
Voidable Contract
valid and enforceable until the qualifying party want to void the contract
Unenforceable Contract
A contract that is legal but is missing some requirements in the law
Formal Contract
written contract with formalities
Informal Contract
a contract written with out formalities
Express Contract
directly states the agreement
Executory Contract
Agreement not followed through
Executed Contract
Agreement followed through
What is the Sources of Contract law
Common law, Modern Statues, Restatement of Contract
Agreement formed for an illegal purpose are what contract
Void
A void contract has no legal…
Effect
A voidable contract is completely __________against all parties unless and until the party legally entitled to avoid does so
Enforceable
An insurance policy is a good example of what contract
Express Contract
