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Business Law, Valid Contract > Chapter 9 Contracts > Flashcards

Chapter 9 Contracts Flashcards

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1
Q

Sources

A

Article 2 ucc (uniform commercial code) - goods

State common law - services and land

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2
Q

Elements of a valid contract

A

Offer
Acceptance
Consideration
No defense

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3
Q

Conduct invalidating assent - what was done wrong to make the contract invalid. Steps

A 
Duress
Undue influence
Fraud
Non fraudulent misrepresentation 
Mistake
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4
Q

Another no defense (3 more)

A

Illegal
Lack of capacity - need to be 18 years or older
Not evidence by writing

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5
Q

Void and voidable contracts

A

Void - cannot be enforced in court

Voidable - can be made void.

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6
Q

Classification of contracts

Express contracts

A

Agreement stated in words, either oral or writing

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7
Q

Classification of contracts

Implied in fact contract

A

Agreement made in conduct - no words were said but a contract happened, ex. Supermarket

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8
Q

Executed and executory contracts

Exceeded contract

A

Contract that has been FULLY PERFORMED by all partied

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9
Q

Executed and executory contracts

Executory contract

A

A contract that has YET to. Be fully performed

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10
Q

Offer

A

Communication - offerer makes offer to offeree and the offeree must Have knowledge

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11
Q

Acceptance

A

Willingness to enter into a contract

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12
Q

Acceptance

Mirror image rule

A

Exact terms on both sides

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13
Q

Acceptance

Communication of acceptance

A

When it reaches the offeree either by mail or by email hitting SUBMIT

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14
Q

Consideration

A

Encouragement to enter a contract

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15
Q

Consideration

Legal sufficiency

A

Benefit to promissory (other person) and a detriment (loss) to the promise

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16
Q

Consideration

Bargain for exchange

A

Mutually agreed upon exchange

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17
Q

Examples of consideration

A

Money

Peace of mind

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18
Q

Conduct invalidating Assent

Duress

A

Wrong act or threat that overcomes free will

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19
Q

Conduct invalidating Assent
Duress
Physical compulsion

A

Involving FORCE renders contract VOID

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20
Q

Conduct invalidating Assent
Duress
Improper threats

A

Threat renders contract VOIDABLE

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21
Q

Conduct invalidating Assent
Undue influence
Renders

A

Taking unFair advantage of other party by dominant position b/c of confidential relationship renders a contract VOIDABLE

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22
Q

Conduct invalidating Assent
Fraud
Fraud in the execution
Renders

A

Document is used to deceive party into entering the contract
Renders VOID

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23
Q

Conduct invalidating Assent
Fraud
Fraud in the inducement

A

When no document is used to deceive other into entering a contract
Renders to be VOIDABLE

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24
Q

Conduct invalidating Assent

Non-fraudulent misrepresentation

A

Incorrect information is given

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25
Q

Conduct invalidating Assent
Non-fraudulent misrepresentation
Negligent misrepresentation
Renders

A

Speaker did not take care to ensure the information was correct
Renders VOIDABLE

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26
Q

Conduct invalidating Assent
Mistake
Mutual mistake

A

Both parties are mistaken either one can choose to walk away
Renders Voidable

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27
Q

Conduct invalidating Assent
Mistake
Unilateral mistake
Unless?

A

One party is mistaken about given facts, remains valid

Unless the other party knew or should have known about the mistake

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28
Q

Contractual capacity

Minors

A

Under the age of 18

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29
Q

Contractual capacity
Minor
Liability on contracts
Exceptions

A

VOIDABLE at the minors option

Clothes, food, and shelter NOT VOIDABLE

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30
Q

Contractual capacity
Mentally incompetent persons
Person under guardianship

A

Contrars made by person under guardian ship by court renders VOID

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31
Q

Contractual capacity

Mentally illness or defect

A

VOIDABLE, the Person does not know the extent of their actions

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32
Q

Contractual capacity

Intoxicated

A

Voidable and intoxicated can be drunk or drugs. Etc.

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33
Q

Illegal bargains

Violations of statutes

A

Court does enforce agreements declared illegal VOID

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34
Q

Illegal bargains
Violations of statutes
Licensing statute

A

Statute that require licenses for traits, professions or businesses, if violated renders VOID

35
Q

Illegal bargains
Violations of statutes
Gambling statute

A

Statutes that forbid betting renders VOID

36
Q

Illegal bargains
Violations of statutes
Usury statutes

A

Statutes that forbid to charge higher interest. Renders VOID

37
Q

Illegal bargains
Violations of statutes
Sunday statutes

A

Prohibit certain activities in Sunday. Renders VOID

38
Q

Illegal bargains

Violation of public policy

A

Injury to public good

39
Q

Illegal bargains
Violation of public policy
Common law restraint of trade and the two types
Unenforceable

A

Unreasonable prevent of trade

  1. sale of business - can’t open of sell a business in an unreasonable geographic area or time
  2. Employment contracts - prohibiting employees form competing with employer for a reasonable time
40
Q

Illegal bargains

Exculpatory clause

A

Excusing party from liability - unenforceable

41
Q

Illegal bargains

Unconscionable contracts

A

Unfair or unduly harsh agreements are unenforceable

42
Q

Illegal bargains

Procedural unconscionability

A

Unfair or irregular bargaining (how was the negotiation conducted)

43
Q

Illegal bargains

Tortious conduct

A

Agreement that Requires a person to commit a tort is unenforceable

44
Q

Illegal bargains

Corrupting public officials

A

Agreement that corrupt officers are not enforceable

45
Q

Written contracts

Statutes of rules

A

Law that list the type of contracts that should be in writing

46
Q

Written contracts

Contracts within the statute of frauds

A

Must be evidence by writing to be enforceable

47
Q

Written contracts

Methods of compliance (how you go about writing the agreement)

A
  1. Specify the parties of contracts
  2. Specify subject matter on essential terms
  3. Be signed by party
48
Q

Written contracts

Parole evidence rule

A

Contract is complete and no other evidence is needed to interpret

49
Q

written contracts

Rules of interpretation of contracts

A
  1. Commonly accepted meaning are used unless party manifest different intentions
  2. Words control figures based in amount,
50
Q

third parties to contracts

Privity of contracts

A

Only the parties to a contract can enjoy the right and perform the duties at the exclusion of third parties

51
Q

Third party to contracts

Assignment of rights

A

Transfer to third party so assignees right to performed is extinguished ( passing the right to somebody so they can receive the benefits)

52
Q

Third party to contracts

Delegation of duties

A

Transfer of contractual obligations (duty)

53
Q

Third party to contracts

Assignment of contracts

A

Both rights and duties are assigned

54
Q

Third party to contracts

Third party beneficiary contracts

A

One party promises to render performance by third person

55
Q

Performance breach and discharge

Discharge

A

Termination of duty - party no longer has to do what was told

56
Q

Performance breach and discharge

Discharge by performance

A

Fulfillment of obligation renders in discharge (party did all that was promised)

57
Q

Performance breach and discharge

Discharge by breach (party failed to do what was promised)

A

Material breach - failure of one party to do most of or all of what was promised
Immaterial breach- failure of one party to do one small port of what was promised

58
Q

Performance breach and discharge
Discharged by agreement of the parties
Mutual rescission

A

Agreement to terminate their respective duty

59
Q

Performance breach and discharge
Discharge by agreement
Substituted contract

A

New contact discharges old contract

60
Q

Performance breach and discharge
Discharge by agreement
Accord and satisfaction.

A

One party is given a new duty and is discharged from the old contract

61
Q

Performance breach and discharge
Discharge by operation of law
Impossibility

A

Performance of the contract cannot be done.

62
Q

Performance breach and discharge
Discharge of operation cannot be done
Destruction of subject matter

A

Discharge contract if occurs without the promissor fault

63
Q

Contract remedies

A

Court awards plaintiff in breach of contract

Example: money

64
Q

What are the two types of Contract remedies

A

Monetary damages

Remedies in equity

65
Q

Contract remedies

3 types of monetary damages

A

Compensatory damages
Incidental damages
Consequential damages

66
Q

Contract remedies
Monetary damages
Compensatory damages

A

Placing the injured party in as good a position as he would have held the other party

67
Q

Contract remedies
Monetary damages
Incidental damages

A

Rise directly out of the breach

68
Q

Contract remedies
Monetary damages
Consequential damages

A

Arising as a foreseeable result of the breach

69
Q

Contract remedies

When is Remedies in equity available

A

When there is no adequate monetary remedy at law

70
Q

Contract remedies

Types of remedies in equity

A

Specific performance

Injunction

71
Q

Contract remedies
Remedies of equity
Specific performance

A

Ordering breaching party to render promised performance

72
Q

Contract remedies
Remedies of equity
Injunction

A

Court order Prohibiting a party from doing specific act

73
Q

Quasi contracts

A

Exception - remember benefits

Obligation that is supposed to avoid injustice

74
Q

Requirements Quasi contracts

A

Oppose quasi contract when
Plaintiff confer a benefit Upon the defendant
The defendant allows or appreciate benefit
Defendants retention of benefit is inequitable (unfair )

75
Q

Promissory estoppel

A

Doctrine enforcing some non-contractual promises

76
Q

Requirements of promissory estoppel

A
  1. Promisor made a promise
  2. Promisee relied on promise to his detriment
  3. Promisor knew or should have known the promised would rely on that promise
77
Q

Mutual assent
Offer
Definiteness

A

Offer must be specific in terms of quantity and price

78
Q

Mutual assent
Offer
Lapse of time

A

Offer remains for the period specified or a reasonable period

79
Q

Mutual assent
Offer
Counter offer

A

Counter offer that terminated original offer

80
Q

Mutual assent
Offer
Death or incompetency

A

Either offeree or offerer terminates offer

81
Q

Mutual assent
Offer
Destruction of the subject matter (item being bought or sold)

A

Offer can be terminated at any time before It is accepted

82
Q

Mutual assent
Offer
Destruction of the subject matter (item being bought or sold) exception

A

Option contract- binds the offerer to keep the offer open for a specified time

83
Q

Definition of a contract

A

Binding AGREEMENT, that courts ENFORCE

Business Law, Valid Contract (1 decks)

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