chapter 8 Exam 3 Flashcards
contract law deals with, among other things, the formation and keeping of
promises
declaration by a person to do or not to do a certain act
a promise
the promisee has a right to expect or demand that something either
will or will not happen in the future
contract law distinguishes between promises that create only moral obligations and promises that are
legally binding
The common law governs all contracts except when it has been modified or replaced by ______ or by
statutory law or by administrative agency regulations
contract la is designed to provide
stabiity and predictability for both buyers and sellers in the market place
contract law assures the parties to private agreements and that the promises they make will be
enforceable
an agreement that can be enforced in courtq
a contract
to determine whether a contract has been formed, the element of ___ is prime importance
intent
the view that contracting parties shall only be bound by terms that can objectively be inferred from promises made
objective theory of contracts
intent is determinde by ____, not by personal or subjective intent or belief of a party
objective theory of contracts
What are the requirements of a valid contract
agreement, consideration, contractual capacity, legality
an offer and an acceptance
agreement
any promise made by parties must be supported by legally sufficient and bargained for
consideration
the law must recognize them as possessing characteristics that qualify them as competent parties
contracutal capacity
the contract’s purpose must be to accomplish some goal that is legal and not against public policy
legality
Even if all elements of contract are present, contract may be unenforceable if this is not met
voluntary consent, and form
if a contract was formed as a result of fraud, mistake, or duress
voluntary consent
must be in whatever form the law requires, some contracts must be in writing to be enforceable
form
what are the types of contracts
formation, performance, and enforceability
every contract involves two parties
offeror and offere
if the offeree can accept simply by promising to perform the contract is
bilateral contract (promise for a promise)
contract is formed not at the moment when promises are exchanged but rather when the contract is performed
unilateral contract (promise for an act)
in contracts offers are normally revocable until
accepted
require a social form or method of creation to be enforceable
formal contracts
includes all other contracts and no special form is required
informal contracts
terms of the agreement are fully and explicitly stated in words, oral or written
express contract
contract formed in whole or in part from the conduct of the parties
implied contract
IF the following exist, court will say implied contract was formed
- plaintiff furnished some service or property
- plaintiff expected to be paid for that service/ property and the defendant knew or should have known that payment was expected
- defendant had chance to reject service/ property and didn’t
contract that has been fully performed by both parties
executed contract
contract has not yet been fully performed
executory contract
a valid contract has four elements
- an agreement
2.supported legally sufficient consideration - for a legal purpose
- made by parties who have the legal capacity to enter into contract
a valid contract that can be avoided at the option of one or both parties
voidable contract
contracts made by minors
-contracts entered into under fraudulent conditons
-contracts entered into under legally defined duress or undue influence
all examples of voidable contracts
cannot be enforced because of certain legal defenses against it. a party failed to satisfy a legal requirement of the contract
unenforceable contract
is no contract at all
void contract
obligation or contract imposed by law in the absence of an agreement, to prevent the unjust enrichment of one party
quasi contracts
when court imposes a quasi contract, plaintiff may recover in
quantum meruit ( as much as they deserve)
describes the extent of compensation owed under a quasi contract
quantum meruit
theory that indivduals should not be allowed to profit or enrich themselves inequitably at the expense of others
unjust enrichment
if court determines the terms of contract are clear from the written document alone,
plain meaning rule will be implied
face of the instrument:
written document alone
court will consider a contract to be ambiguous:
- when intent of parties cannot be determined from its language
- when it lacks a provision on a disputed issue
- when a term is susceptible to more than one interpretation
- when there is uncertainity about a provision
evidence not contained in document itself, and may include the testimony of parties, additional agreements or communications or other relevant info
extrinsic evidence
study page 160 for rules of interpretation
