Contract Flashcards
What is a contract
A legally binding agreement made between two or more persons, intended to create legal obligation
between them and to be legally enforceable.
What is an agreement
An agreement is an exchange of promises between two or more parties.
Are agreements contracts?
NO >:0
A contract is an agreement that is enforceable by law. A mere agreement is not legally binding
Name some types of contracts
- Simple
2. Specialty
What is a simple contract
A simple contract can be made orally, in writing or by the implications deemed from the actions
of the parties.
What are oral contracts and what are written contracts
Are based on what the parties said. Both the person making the offer (offeror) and the person accepting the offer
(offeree) must sign the contract document.
What are implied contracts
Implied Contracts are made by the observed actions of the parties involved.
Name some elements of contracts
- Offer and acceptance
- Consideration
- Capacity/Competence of the parties
- Intention to create legal creations
- Legality
- Possibility
- Genuineness of the parties
- Good faith
What is the difference between an offer and an invitation to treat?
An offer is a proposal made by one party to another to enter a legally binding agreement. An invitation to treat allows the other party to make an offer.
What is a specialty contract
A specialty contract is a formal agreement that must be in writing. It is also called a deed or a contract
under seal.
Specialty contracts MUST be??
Signed – all the details of the contract are in a document and are signed by all the parties involved in the
contract.
Sealed – this means a seal, whether embossed, imprinted, or pasted, is on the document.
Delivered – all the parties to the contract have all received a copy of the contract.
Examples of specialty contracts
Sale of goods
Sale of land
Insurance contracts
Lease of property
