Contract Law Flashcards
What is a contract?
A legally binding (enforceable) agreement between two or more parties.
What are the two types?
Simple and Specialty.
Specialty
Written, signed, sealed, and a delivered agreement by all parties.
Example of specialty
Land, marriage, insurance contract.
Simple
Orally, in writing, or deemed from the actions of the parties, most contracts are this category.
What are the two types of simple contracts?
Express and Implied
Express
Agreements specifically laid out orally or in writing.
Implied
Agreements in which the terms are evident from the circumstances but are not explicitly stated.
What are the necessities?
Food, clothing, education, shelter, and medical services.
What is repudiated?
Something was done to make the contract not valid (cancelled).
What makes a valid contract (6)?
Offer and acceptance, consideration, capacity, legal purpose, genuine consent, good faith.
Offer and acceptance
The offer must be genuine, clear, exact, and intended as a serious offer. The acceptance has to be unqualified, clear, and it has to agree with the precise terms of the offer.
Consideration
Must be consideration on both parties - a legal term meaning something of value. Can be money, goods or services. Cannot be love, gratefulness or for something done in the past.
Capacity
Must be legally competent, over 18, possess a sound mind, and mutual understanding of the contract.
Legal purpose
A contract itself must be legal.
