Code III - Contracts Flashcards
Onerous Contract
reason to bound is for benefit to self
Gratuitous Contract
reason to bound is to benefit obligee
Principal Contract
contract whose obligation is secured by an accessory contract
Accessory Contract
provides security for the performance of another obligation
Nominate Contracts
is given special designation
Innominate Contracts
has no special designation
Commutative Contract
where the performance by one party is correlative to the performance by another party
Aleatory Contract
performance or extent of performance of any party to contract depends on an UNCERTAIN event
Requirements for Valid Contract
- Capacity
- Consent (through offer and acceptance)
- Cause
- Object
Capacity
All persons have capacity EXCEPT:
1. unemancipated minors
2. interdicts
3. persons deprived of reason
Consent
Evidenced by offer and acceptance
Offer
personal to offeree
revocation of offer must be received PRIOR to acceptance of offer
if specified period of time for acceptance, irrevocable during that time
Revocable offer = expires if not accepted within a reasonable time
Irrevocable offer = expires if not accepted during period which irrevocable
Acceptance
revocable offer = effective when offeree transmits acceptance (mailbox rule)
irrevocable offer = effective when offer receives it (possession)
Acceptance by silence
must reasonably lead the offeror to believe acceptance
Nonconforming acceptance
acceptance not in accord with terms of the offer is a COUNTEROFFER
Offer of Rewards to the Public
binding on offeror regardless of whether the person who performs the requested act knows of the offer
can be revoked ONLY by same or equal means of offer
Contracts of Adhesion
standard contract prepared by a party of superior bargaining power for adherence or rejection by weaker party
Cause
must be either:
1. a lawful cause; OR
2. Detrimental reliance
Need NOT be expressed
Simulation
When parties true cause is not expressed
Detrimental Reliance
- Promisee RELIED on the promise to their detriment
- promisor knew or should have known that the promisee would so rely; AND
- promisee was reasonable in so relying
Object
lawful, possible, and determined or determinable
Determined or Determinable Object
must be determined AT LEAST AS TO KIND but the quantity need only be determinable
CAN be left to discretion of third party; if they fail court may do so
Future things OKAY
Promesse de Porte-Fort
contract the object of which is an act done by a third party
Stipulation Pour Autrie
stipulate benefit for a third person (third-party beneficiary)
Once 3p manifests intent to accept the benefit it is irrevocable
Vices of Consent
- Error
- Fraud
- Duress
Error
either party may obtain rescission
If one party is in error error will vitiate consent if:
1. concerns a cause without which the obligation would not have been incurred
2. cause was known or should have been known to the other party
Fraud
misrepresentation or suppression of the truth made with the intent to obtain an unjust advantage or cause a loss or inconvenience to the other party
DOES NOT vitiate consent when a party could have ascertained the truth w/o difficulty or special skill UNLESS a relation of confidence exists
Need not be but-for-cause - substantially influenced consent
Fraud through silence
Fraud by 3p vitiates consent if other party knew or should have known of the fraud