Contracts Flashcards
What is a contract?
A contract is an oral or written legal agreement between two or more parties in which there is a promise to do something in return for a valuable benefit.
What are the elements of a contract?
- offer
- acceptance
- consideration
- counter offer
- capacity
- legality
- good faith
- possibility
- invitation to treat
What is an offer?
An offer is a bid or proposal made by one person to another.
What is acceptance?
An offer is accepted when the offered willingly accepts to the offer.
What is consideration?
The name given to the price or reward that the parties receive.
What is counter offer.
This is when the roles change and the offered gives the offeror a new offer.
What is capacity?
Anyone who enters into a contract must be able to take full responsibility for their actions associated with the contract.
What is legality?
All contracts must obey the law.
What is good faith?
Parties must deal with each other honestly and fairly.
What is possibility?
The parties to a contract just be in a position to deliver the requirements of the contract.
What is invitation to treat?
An invitation to make an offer. It is a statement which is intended to persuade someone else to make an offer
