Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Flemings-Contracts > Contract Definitions > Flashcards

Contract Definitions Flashcards

1
Q

Definiteness of terms: QTIPS

A

Reasonable person test

  • Quantity
  • Time for performance
  • Identification of parties
  • Price
  • Subject matter
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Offer can be freely terminated except if any of these 3 conditions have occurred

A
  • Option contract
  • Foreseeable detrimental reliance
  • Unilateral contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Acceptance

A

An unequivocal assent to the terms of an offer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Offer

A

An outward manifestation of present contractual intent, definite and certain, and which is communicated to the offeree.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Is an advertisement an offer?

A

Majority: No, it is an invitation to deal.
Minority: Yes, if offer is definite and certain with nothing further to negotiate and gives a specific way which offeree may accept.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Option Contract-Terms

A
  • Requires consideration
  • Open for a reasonable time or time stated
  • Majority: Even if no true consideration, offer is irrevocable for a reasonable time if it recites a purported or nominal consideration.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Detrimental Reliance

A

Requires reasonable foreseeable reliance on or forbearance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Unilateral Contract

A

Acceptance by performance. Once performance begins, the offer must be kept open for a reasonable time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

4 ways an offer can terminate by operation of law

A
  • Lapse of time. If offer states a time for acceptance, then offer will terminate at midnight on that date.
  • Death/destruction of subject matter.
  • Death/insanity of either party.
  • Supervening illegality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Mailbox rule of acceptance

A

Majority: Effective upon dispatch. Contract formed whether it reaches offerer or not.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Exceptions to mailbox rule

A
  • Option contract: Acceptance must reach offeror
  • Unilateral contracts
  • Where offeror provides a rule on how to accept (i.e. acceptance on upon receipt)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Acceptance by silence

A

General rule: Silence is not an acceptance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Mirror image rule

A

Acceptance must be a mirror image. Otherwise it is a counter offer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Mistake

A

A material misrepresentation of past or present fact, which goes to the essence of the contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Unilateral mistake

A
  • If party knew or should have known about mistake, no contract.
  • If party neither knew nor should have known, there is a contract.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Ambiguity

A

Terms of offer open to multiple interpretations.

  • Where both parties had reason to know of ambiguity, no contract unless both parties gave same meaning to ambiguity.
  • Where neither parties had reason to know, no contract unless both parties gave same meaning to ambiguity.
  • Where one party had reason to know of ambiguity, the law will favor interpretation to uninformed and innocent party.
17
Q

Consideration

A

Bargain made in exchange for legal detriment.

18
Q

Liquidated debt v. Unliquidated debt

A
  • Liquidated debt: Amount owed is certain.

- Unliquidated debt: Amount owed is uncertain.

19
Q

Accord and Satisfaction

A
  • An accord is an executory agreement intended to compromise and existing obligation.
  • Satisfaction is the performance of that accord.
20
Q

Pre-existing duty rule

A

Neither the promise to perform nor the performance of a pre-existing duty is consideration.

21
Q

Modification

A

Mutual consent between the parties to alter/vary the terms of the original agreement.

22
Q

Illusory promises

A

A promise where no obligation is imposed.

23
Q

Statute of Frauds

A
  • Promise in consideration of Marriage.
  • Real Property.
  • Debt of another
  • Contracts not capable of being performed in one year.
  • Goods over $500.
24
Q

Promissory estoppel: Detrimental reliance rule

A

If a donative promise induces reliance by the promisee in a manner that the promisor should have reasonably expected, the promise is enforceable.

25
Q

Defenses to Formation (SPIF DUUMMI)

A
  • Statutes of frauds
  • Unconscionability
  • Unfair surprise
  • Incapacity
  • Mistake/Ambiguity
  • Misrepresentation
  • Duress
  • Fraud
  • Illegal subject matter
  • Parole evidence rule
26
Q

Parole Evidence Rule

A

Any written/oral statements made prior to or contemporaneously with the formation of a contract cannot vary, add to, or contradict the terms of an existing contract.

27
Q

Perfect Tender Rule

A

In the goods or tender of delivery fail in any respect to conform to the contract, buyer may reject the whole, accept the whole, or accept any commercial units and reject the rest.

28
Q

Three Methods of Acceptance-UCC

A
  • Buyer accepts after opportunity to inspect.
  • Buyer fails to make an effective rejection. Reasonable time.
  • Buyer acts inconsistent with seller’s ownership rights.
29
Q

Buyer’s remedies prior to acceptance

A

-Cancel

  • Recover any part of the contract price previously paid and either:
    1) Cover and receive damages for the difference between cost of cover and contract price plus incidental or consequential damages or
    2) Recover damages based on difference between market price and contract price.
  • Specific Performance/Replevin-unique chattel
  • Buyer may hold non-conforming goods as security for damages.
  • If goods are warranted, damages are the difference between value of goods as accepted and value as warranted.
30
Q

Buyer’s remedies after acceptance

A
  • Buyer liable for contract price less damages.
  • Damages is difference between value of the goods accepted and the value if they had conformed to the contract plus incidental or consequential damages.
31
Q

Seller’s remedies prior to acceptance

A
  • Cancel the contract
  • Withhold delivery
  • Stop goods in transit
  • Resell goods and recover damages of difference between contract price plus incidental damages but less expenses saved in consequence of buyer’s breach.
32
Q

Seller’s remedies after acceptance

A
  • Sue for price plus incidental damages.

- Reclamation of goods used when buyer is insolvent

33
Q

Fraud

A

Misrepresentation of material fact knowingly made with the intent to induce P to justifiably rely to his detriment.

34
Q

Mistake

A

A belief not in accord with an existing fact as opposed to an error of judgment. Must be one of fact, not of law.

35
Q

Duress

A

Unlawful Constraint exercised upon a person to coerce another to obtain a material benefit usually money or property.

36
Q

Undue Influence

A

Coercion of someone in a subordinate position; look to fiduciary relationship.

37
Q

Unconscionability

A

A contract that is fundamentally unfair and often formed as a result of unfair bargaining power. The courts will look at factors such as age, education, intelligence, business acumen and experience of the parties.

38
Q

Avoidable Consequence Rule

A

P cannot recover for damages which he could have avoided by reasonable efforts.

39
Q

Quasi Contract

A

Where P has conferred a benefit on D and unjust enrichment has occurred.

Flemings-Contracts (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions