Chapter 9 - Contracts and Leases Flashcards
What source of contract law deals with the sale of goods?
Article 2 of the UCC
What source of contract law deals with the rendering of services or the purchase of real estate?
Common law
What are the 4 requirements for a contract?
- offer & acceptance
- consideration
- capacity
- legal purpose
What is consideration?
anything of value that is exchanged by parties
What is an implied contract?
a contract that is not explicitly articulated but is held to exist based on certain circumstances or on the conduct of the parties
What does “meeting of the minds” mean?
the acceptance must be the mirror image of what is being offered
What is an option contract?
a separate agreement requiring the offeree to pay something to the offeror for the privilege of having the offer left open for a longer period of time
What is an illusory promise?
when one party fails to provide anything of value
What is a requirements contract?
a buyer’s agreement to purchase all of a specified commodity from a particular seller
What is an output contract?
a seller’s agreement to sell all of its output to a particular buyer
What is a unilateral contract?
when a promise is exchanged for the performance of a certain act
What is a statute of frauds?
requires parties to put certain types of agreements in writing
contracts subject to the statute of frauds:
cannot be performed within 1 year, involve the transfer of interests in real property, agreeing to assume another person’s debt, prenuptial contracts, sale of goods $500+
What is an integration or merger clause?
an agreement that supersedes all prior agreements
What is a nonreliance clause?
both parties confirm that they have not relied on any representations or promises that might have been made during the course of the negotiations other than those set forth in the written contract
what is an addenda
provides a way for the parties to modify the main agreement after the main contract has been signed by both parties
what is the uniform electronic transactions act (UETA)
laws governing electronic transactions - sets forth 4 basic rules for parties who agree to conduct business electronically
what are 2 requirements of a valid electronic signature
- person must intend the process or mark to act as a signature
- the electronic signature must be attributed to that person
what is the e-sign act (electronic signatures in global and national commerce act)?
a signature, contract, or other record may not be denied legal effect, validity, or enforceability solely because it is in electronic form.
governs only transactions in interstate and foreign commerce
what documents are excluded from the ueta and e-sign acts
wills & trusts
adoption, divorce, family law contracts
what is a counterpart?
when each party signs a copy of the original page and all signature pages taken together are deemed to be one original
what is the best evidence rule?
requires the introduction of the original document (contract)
what are recitals?
explicit preamble or statement summarizing the parties’ intentions
what is the only restriction to conditions in a contract?
one party’s obligation may not be made conditional upon some occurrence exclusively within the control of the same party
what is an acceleration clause?
specifies that all remaining installments (and interest if applicable) become immediately due and payable if the buyer is late in paying any installment
