Chapter 9: Introduction To Contracts Flashcards
Uniform Commercial Code (UCC)
Article 2 of the UCC governs the sales of goods.
Sale
The transfer of title from seller to buyer.
Goods
Tangible personal property.
Personal property
Property other than an interest in land.
Common law
Most contracts are primarily governed by state common law, including contracts involving employment, services, insurance, real property, patents, and copyrights.
Real property
Land and anything attached to it., Including buildings, as well as any right, privilege, or power in the real property, including leases, mortgages, options, and easements.
Contract
Binding agreement that the courts will enforce.
Breach
Failure to properly perform a contractual obligation.
Requirements of a contract:
- Mutual assent
- Consideration
- Legality of object
- Capacity
Implied in fact contract
Contract in which agreement of the parties is inferred from their conduct.
Express contract
Agreement of parties that is stated in words either in writing or orally.
Bilateral contract
Contract in which both parties exchange promises.
Promisor
Person makes a promise.
Promisee
Person to whom a promise is made.
Unilateral contract
Contract in which only one party makes a promise.
Valid contract
Contract that meets all of the requirements of a binding contract.
Void contract
An agreement without legal effect.
Voidable contract
Contract capable of being made void.
Unenforceable contract
Contract for the breach of which the law does not provide a remedy.
Executed contract
Contract fully performed by all of the parties.
Executory contract
Contracts not fully performed.
Promissory estoppel
Doctrine in forcing non-contractual promises for which there have been justifiable reliance on the promise and justice requires enforcement.
Quasi contract or restitution
Obligation not based upon a contract that is imposed to avoid injustice.
Also called an implied in law contract.
The plaintiff recovers the reasonable value of the benefit she conferred upon the defendant.
Mutual Assent
The parties to a contract must manifest by words or can conduct that they have agreed to enter into a contract.
Consideration
Each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange.
Legality of object
The purpose of a contract must not be criminal, tortious, or otherwise against public policy.
Capacity
The parties to a contract must have contractual capacity.
