Contracts Flashcards
Offer, Acceptance, Consideration, Proper form (oral or written), Legal subject matter, 2 Competent parties
Contracts
Can be written or oral Must be in the form/method required by offeror Must be mirror image - i.e. no changes in terms
Contracts
Must be accepted by intended party (offeree) Acceptance can only be made by a party who knows an offer has been made and has all of the facts - AKA a meeting of the minds They must intend to accept
Contracts
It is not acceptance; but instead becomes a counter-offer and the original offeror is now the offeree
Contracts
When they RECEIVE the acceptance. If the offeree rejects; then accepts - whatever gets to the offeror first is what is binding.
Contracts
If offeror dies or becomes insane before acceptance; offer is void. Contract is binding if acceptance occurs before death/insanity.
Contracts
Offeror revokes and offeree receives revocation Offeree finds out prior to acceptance that offeror has sold the item In the case of an Option; offeror cannot revoke until the time of the option has elapsed Initial rejection by offeree doesn’t void the option.
Contracts
Some amount of consideration (like money) is put forth by offeror to keep the offer open for a stated period of time
Contracts
These are contracts where someone becomes the exclusive provider of something in exchange for consideration Companies can’t get locked in to one and then have market conditions force them to sell something at what has become an unreasonable price
Contracts
Promises to donate are legally enforceable Basically; you can’t tell a charity; Hey; if you buy this $100;000 piece of land; I’ll pay for the building that will go on it; and then renege on your promise
Contracts
Fraud in the execution Formed under extreme duress - extreme Illegal
Contracts
Fraud in the inducement Party not competent to contract Formed under SIMPLE duress Undue influence
Contracts
The contract is unenforceable. Example: Person signs a contract to pay $500.00 to have their lawn re-seeded but due to clerical error; it actually reads $5000.00
Contracts
They must be in writing.
Contracts
o Cannot be completed within one year o Involves the purchase of real estate o $500+ Sale of Goods o Co-signing and guaranteeing the debt of another
Contracts