contracts

Question 1

what is a contract ?

Answer 1

a contract is a legally binding agreement made between 2 or more individuals which is enforceable by law.

Question 2

what is the difference between a contract & an agreement ?

Answer 2

a contract is legally binding and enforceable by law whereas an agreement is not legally binding,

Question 3

what are the types of contracts ?

Answer 3

a simple contract- written or verbal agreement (consideration, genuineness, legally, capacity)

a specialty contract- formal agreement in writing (must be signed, sealed and delivered)

a contracts of record- handed down by court order

Question 4

key terms used in contracts

Answer 4

invitation to treat- an invitation for someone else to make an offer.
breach of contract- failure or refusal by either party to fulfill their obligations of a contract

voidable contract- a contract that cannot be enforced by law because it is of an illegal act.

Question 5

characteristics of contracts

Answer 5

offer
acceptance
consideration
capacity
legality
possibility
good faith

Question 6

mistakes & misrepresentations in contracts

Answer 6

common mistakes
- when both parties agree on a subject of the contract but both parties are mistaken about an aspect of the contract

mutual mistakes
-both parties are mistaken about the same material fact

uniliteral mistake
- fraud in a contract