Contract Law Flashcards
What is a contract
An agreement between two or more people to do something in exchange for something of value
How can a contract be formed
Written or verbal agreement
What is the term if someone has failed their end of the contract
A breach in the contract
What are the two types of contracts
- Unilateral Contracts
- Bilateral contracts
What is a Unilateral Contract?
A one sided promise, involves only one person making a promise
(Example- lost phone reward or crime stopper reward ad)
What is a bilateral contract?
Involves two promises and acceptance must be communicated with both parties for contract to be completed
What is needed for a contract to be formed?
5 legal ingredients needed to form a contract they are as follows
- offer
- acceptance
- consideration and intention
- capacity
What is an invitation to treat
It is an invitation to make an offer not a binding legal commitment between one or more parties
What is consideration
Could be something other then money
(Example- I will give you my laptop in exchange for your bike)
