Contracts Flashcards
Elements of Contract
- Offer
- Adequate Consideration
- Acceptance
- Mutuality
agreement
when parties reach the same understanding about their obligations, duties, rights
mutual obligations
Each party must either do or refrain from doing something for the other party.
Four Elements of a contract
- Offer
- Adequate Consideration
- Acceptance
- Mutuality
Offer
One party offers to do or refrain from doing some action
2 Theories of consideration
-Benefit Detriment Theory
-Bargain Exhange Theory
Acceptance of an offer
all parties must agree to terms of offer as they are stated
Insufficient Consideration
-Preexisting Duty- promise that party already has legal duty to fulfill
-Past Consideration-a promise to do of refrain from doing something that one has already done
Types of contracts
Express, implied, unilateral
Express Contract
A contract offered and accepted orally or written
Implied Contract
offer and acceptance of contract is indicated by conduct of parties
Unilateral Contract
Offer is accepted when
Benefit Detriment Theory of consideration
there is adequate consideration when there is a benefit to promisor and detriment to promisee or vise versa.
Bargain for Exchange Theory
there is adequate consideration when the promisor bargains for something from the promisee in exchange for some specified promise
mirror image rule
to form a valid contract, an offer must be accepted with no modifications.
capacity to agree
parties must be of sound mind, and have reached minimum age
can intoxicated enter into contracts
yes if voluntarily intoxicated, but not so intoxicated they don’t understand the nature and consequences.
Contract
legally enforceable agreement that creates mutual obligations between private parties.
