Contract Law Flashcards
Breach of contract
Failure, without legal excuse, to perform as required by a contract
Competent party
Person considered legally capable of entering into a binding contract
Consideration
An act or promise given in exchange for something
Contract
A legally enforceable agreement to do (or not to do) a particular thing
Counteroffer
An offer made in response to an offer
Duress
The application of force to obtain an agreement
Fraud
An act intended to deceive for the purpose of inducing another to give up something of value
Liquidated damages
An amount of money specified in a contract as compensation to be paid if the contract is not satisfactorily complete
Power of attorney
A document by which one person authorizes another to act on his or her behalf
Specific performance
Contract performance according to the precise terms agreed upon
Void contract
A contract that has no binding effect on the parties who made it
Voidable contract
A contract that is able to be voided by one of its parties
Expressed contract
Occurs when the parties to the contract declare their intentions either orally or in writing
Party
Legal term that refers to a person or group involved in a legal proceeding
Implied contract
Created by neither words nor writing but rather by actions of the parties indicating that they intend to create a contract
Bilateral contract
Results when a promise is exchanged for a promise
Unilateral contract
Results when a promise is exchanged for performance
Forbearance
Forebear - promise not to act
Valid contract
Meets all the requirements of law. Binding upon its parties and legally enforceable in a court of law
1 legally competent parties 2 mutual agreement 3 lawful objective 4 consideration 5 contract in writing when required by law
Novation
Substitution of a new contract between the same or new parties
Statue of limitations
Limits by law the amount of time a wronged party has to seek the aid of a court in obtaining justice
