Chapter 9 - Introduction To Contracts Flashcards
What are the 7 parts of a contract that must be in place have a legal contract?
- Offer
- Acceptance
- Consideration
- Legality
- Capacity
- Consent
- Writing
What is an Offer?
In contract law, an act of statement that proposes definite terms and permits the other party to create a contract by accepting those terms
What is Acceptance?
Once a party receives an offer, he must respond to it in a certain way.
What is Consideration?
In contract law, something of legal value that has been bargained for and given in exchange by the parties.
What is Legality?
The contract must be for a lawful purpose.
What is Capacity?
The legal ability to enter into a contract.
What is Consent?
Certain kinds of trickery and force can prevent the formation of a contract
What is Writing?
Some types of contracts must be in writing to be enforceable.
What is a contract?
A legally enforceable agreement.
A promise that the law will enforce
What is a Bilateral Contract?
A contract where both parties make a promise
What is a Unilateral Contract?
A contract where one party makes a promise that the other party can accept only by doing something
What is an Executory Contract?
A binding agreement in which one or more of the parties has not fulfilled its obligations
What is an Executed Contract?
An agreement in which all parties have fulfilled their obligation
What is a Valid Contract?
A contract that satisfies all of the law’s requirements
What is an Unenforceable Contract?
A contract where the parties intent to form a valid bargain but a court declares that some rule of law prevents enforcing it.
What is a Voidable Contract?
An agreement that, because of some defect, may be terminated by one party, such as a minor, but not by both parties.
What is a Void Agreement?
An agreement that neither party may legally enforce.
What is an Express Contract?
An agreement with all important terms explicitly stated
What is an Implied Contract?
A contract where the words and conduct of the parties indicate that they intended an agreement.
What is Promissory Estoppel?
A doctrine in which a court may enforce a promise made by the defendant even when there is no contract.
-The defendant made a promise that the plaintiff relied on.
What is a Quasi-Contract?
A legal fiction in which, to avoid injustice, the court awards damages as if a contract had existed, although one did not.
-The defendant did not make any promise, but did receive a benefit from the plaintiff.
What is Quantum Maruit?
“As much as he deserved” The damages awarded in a quasi-contract case.
What are Goods?
Are things that are movable, other than money and investment securities.
Which 4 parts of contract law came from Common Law?
Express Contracts
Implied Contracts
Promissory Estoppel
Quasi-Contract
What is the UCC?
Uniform Commercial Code - a set of laws for business transactions so they are the same across all the states (Most so far)
What does the UCC govern compared to common law?
The UCC governs the sale of goods while common law principles govern contracts for sales of services and everything else..
If a contract involves both the sale of goods and service, how do you determine whether to go by the UCC or Common Law?
When you have the sale of goods and services, Article 2 of the UCC governs only if the primary purpose was the sale of goods.
What is an Offeror?
The party in contract negotiations who makes the first offer.
What is an Offeree?
The party in the contract negotiations who receives the first offer.
What must have happened for a Meeting of the Minds to have taken place?
One side must make an offer and the other must make an acceptance.
What is a Revocation?
When an offer is revoked when the offeror “takes it back” before the offeree accepts.
What is a Rejection?
If an offeree clearly indicates that he does not want the offer,then he has rejected it. A rejection immediately terminates the offer.
What is a counteroffer?
When a party responds to an offer with a new a different proposal. A counteroffer is a rejection of the previous offer.
What is the Mirror Image Rule?
A contract doctrine that requires acceptance to be on exactly the same terms as the offer. Otherwise it is counted as a counteroffer and is a rejection of the initial offer.
When will an acceptance that adds additional or different terms create a contract?
Under the UCC and the battle of the forms, acceptance that adds additional and different terms will create a contract. And the additional items will often become part of the contract.
When are the major 4 specifics on when the mirror image rule is ignored under the UCC?
- For the sale of goods, the most important factor is whether the parties believe they have a binding agreement. If their conduct indicates that they have a deal, they probably do.
- If the offeree adds new terms to the offer, acceptance by the offeror generally creates a binding agreement
- If the offeree changes the terms of the offer, a court will probably rely on the general principles of the UCC to create a fair contract.
- If a party wants a contract on its terms only, with no changes, it must clearly indicate that.
When is the effective date of an acceptance?
An acceptance is generally effective upon dispatch, meaning the moment it is out of the offeree’s control.
What is the effective date of a termination?
Terminations take effect on the date they are received.
