Brainscape's Knowledge GenomeTM

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


See full index

Legal Responsibilities of Business > Contract Law > Flashcards

Contract Law Flashcards

1
Q

Contract

A

Agreements between two or more parties enforceable in court

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

Express contract

A

A contract expressed in words

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

Implied contract

A

Formed via actions or as a result of a legal obligation

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

Principle of unjust enrichment

A

Dispute resolution should not allow unjust enrichment of a party at the expense of others

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

Four requirements for enforceability of contract

A

Capacity, mutual agreement, consideration, legality

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

Bilateral contract

A

Exchange of promises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Unilateral contract

A

A promise performed on condition of performance of an action (not binding on one party until performance)

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

Executed contract

A

Fully performed contract

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

Executory contract

A

A contract still in progress

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Unenforceable contract

A

Contracts that do not meet requirements of enforceability

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

Void contract

A

Cannot be legally enforced under any circumstances

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Voidable contract

A

Binding only on one party

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

Examples of incapacity

A

Minor, insane, intoxicated

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

Right of disaffirmance

A

Right held by minor when making contract;

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

Two caveats of disaffirmance

A

Innocent buyer caveat, necessaries caveat

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Innocent buyer caveat of disaffirmance

A

Third party cannot obtain goods sold by minor to innocent buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Necessities caveat of disaffirmance

A

Minor need not restore necessities but must pay reasonable value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

When minor is not considered as such

A

Ab initio ratification, tort, age fraud

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Ab initio ratification (minors)

A

After reaching age of majority, can ratify contract via conduct or express agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Tort caveat (minors)

A

A minor who commits a tort is held responsible for the harm unless very young

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Age fraud (minors)

A

If not obvious to other party, age fraud removes right of disaffirmance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Insanity

A

Any mental infirmity impairing ability to make contracts; confers right of disaffirmance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Two conditions of voidability under intoxication

A

Intoxication impaired ability to make contracts; other party was aware of intoxication

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Conditions of an offer

A

Communicates intent to enter contract, definite enough for court to determine intent, communicated to other party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Period of acceptance for offer

A

As long as specified or for a reasonable period of time as determined by a court.

26
Q

Advertisements as offers

A

Typically not considered specific enough

27
Q

Counteroffer

A

Proposition of alternative terms to a contract than what laid out in offer; not considered acceptance

28
Q

Common law vs. UCC on manner of acceptance

A

Mailbox rule vs. any reasonable manner of acceptance

29
Q

Silence as acceptance

A

Under special circumstances, such as when conveyed in conduction, when agreed in advance that silence constitutes acceptance, or where precedent

30
Q

Mailbox rule

A

Acceptance of offer must be conveyed in similar manner to offer itself

31
Q

Four exceptions to revocation prior to acceptance

A

Options contract, written offer made by merchant to buy/sell something (UCC), promissory estoppel, unilateral contract w/o substantial performance

32
Q

Items not considered as consideration

A

Duties customarily performed by obligation; duties already owed by legal/contractual obligation; past acts

33
Q

Promissory estoppel

A

Promise relied upon to detriment may be binding, even without consideration

34
Q

Laws governing illegal consideration

A

Blue laws (alcohol), usury laws (interest rates), public policy

35
Q

Exculpatory clause

A

Clause stating one party is not liable for damage resulting from negligence

36
Q

Adhesion contracts

A

Take it or leave it contract – standardized written contract with no room for negotiation

37
Q

Enforceability of exculpatory clause

A

Depends on if business proper for regulation, provides public service, has advantage of bargaining power, adhesion contract, placed property or person subject to risk from negligence

38
Q

Means of performing contract

A

Satisfaction of terms and obligations OR mutual rescission

39
Q

Full performance

A

Performance of all terms to full accord

40
Q

Substantial performance

A

Completion of most terms but not all; usually over half

41
Q

Payment for substantial performance

A

Pay for portion performed; deduct costs needed to finish rest of portion

42
Q

Payment for non-substantial performance

A

Quantum meruit (“going rate”)

43
Q

Express conditions of contract

A

Conditions of contract stated verbally

44
Q

Implied conditions of contract

A

Part of deal but not expressly stated

45
Q

Satisfaction guaranteed

A

If explicitly stated, is enforceable

46
Q

Breach of contract

A

Failure to comply with contract terms

47
Q

Conditions for claiming breach of contract

A

Existence of breach; damages suffered

48
Q

Obligations of plaintiff

A

Obligated to attempt to mitigate damages prior to making claim of breach

49
Q

Limitation of scope for breach of contract

A

Reasonably foreseeable damages

50
Q

Anticipatory breach

A

If breach of contract is anticipated, plaintiff need not wait for breach to make claim

51
Q

Sales contracts (UCC)

A

Contracts made to sell goods

52
Q

Goods (UCC)

A

Tangibles, items tied to land (i.e. NOT services)

53
Q

Sales (UCC)

A

Transfer of title (actual ownership) to property

54
Q

Merchants (UCC)

A

People who deal in goods sold under sales contracts OR who hold themselves as having skill or knowledge in such goods

55
Q

Leasing

A

Transfer of possession/use of property for rental payments

56
Q

Leasing parties

A

Lessor, lessee

57
Q

UCC

A

Uniform Commercial Code

58
Q

UCC allows for indefinite terms if

A

intention to form contract, basis for court to grant remedies in dispute

59
Q

Requirements contract

A

Buyer commits to purchasing what is needed

60
Q

Advent v. Unisys ruling

A

Unisys failed to maintain good faith estimation of requirements by not seeking to sell computer system to other companies

61
Q

UCC Statute of Frauds - 3 requirements

A

Contracts for $500 or more not enforceable unless in writing. Written contracts considered enforceable even if missing important terms. Contracts not enforceable for goods beyond what written.

Legal Responsibilities of Business (9 decks)

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