Contract Law Flashcards
What is a Contract
Any exchange of mutual reciprocal promises, met with certain requirements
What type of law governs contracts
State common law, made through judicial opinions
What are the the essential components of a contract
Offer
Acceptance
Consideration
What are the secondary elements of importance for a contract
Consideration,
Mutuality
Capacity to Contract
Intent to contract
lawful subject matter
what is an “offer”
a promise of action of forbearance on the part of one individual of entity
What is “acceptance”
Unambiguous assent to an offer made by another
what is “consideration”
the lawful surrender of something of value
what is “mutuality”
a meeting of the minds - evidence of reciprocal assent to the substance of the agreement between or Among the parties
what is “capacity to contract”
the state of being legally competent to enter into a legally valid agreement
Intent to contract
the objective to create a legally binding and enforceable agreement, which may be/often is presumed in agreements entered into in a businesss contact
what is “Lawful subject matter”
terms and provisions that do not violate law
How do you challenge the existence of a valid contract?
rebut proof of any element of a contract
what are the two types of internet contracts?
Click Wrap - “click to accept”
Browse Wrap - assumed by use
What must a contract have to be valid
the required components
Must be Valid
Must be Binding in Nature
Must be enforceable
What is validity for a contract
Mutuality - no fraud, duress, unequal bargaining power
no incompetence / incapacity
what could make a contract voidable
reason for contract ceases to exist
impossibility of performance
Impracticability of performance
what is force majure
excuses a party for extra ordinary circumstances
what makes a contract enforceable
complying with legal formalities
performance is adequate
it’s reasonable to public policy
what are the components of breeching a contract?
it’s an enforceable contract
nonperformance exists
damages caused by breech
what are considered damages
compensatory
nominal
pecuniary
what are compensatory damages
expectation - specific to transaction
consequential - related to the transaction
what is nominal damages
no real loss occures
what is pecuniary damages
money, generally
what are contract remedies
specific performance
injunction
restitution
recession
reformation
what is specific performance
compels compliance with terms
what is injunction
prohibits breeching party from taking action
what is restitution
restores pre-contract status
what is recission
sets the contract aside
what is reformation
rewrites contract terms
are good faith and fair dealing fiduciary duties?
no. they are obligations owed by certain business entity constituents to others
between corporate shareholders and general partners, who has limited liability?
Corporate Share holders
