Contracts Flashcards
What is Acceptance in contract law?
The offeree’s manifestation of assent to the terms of the offer in a manner invited or required by the offer.
Define Accord and Satisfaction.
An agreement (accord) to accept a different performance in satisfaction of an existing obligation, and the subsequent performance (satisfaction) of that agreement, which discharges the original obligation.
What is Anticipatory Repudiation?
A clear and unequivocal indication by a party before the time for performance that they will not perform their contractual obligations.
What does Assignment refer to in contracts?
The transfer of a right under a contract by one party (assignor) to a third party (assignee).
What is a Bilateral Contract?
A contract formed by the exchange of promises between two parties.
Define Consideration in contract law.
Something of legal value exchanged between parties to a contract that induces them to enter into the agreement.
What is a Counteroffer?
A response to an offer that introduces new or different terms, acting as a rejection of the original offer and creating a new offer.
What does Delegation mean in the context of contracts?
The transfer of a duty under a contract by one party (delegator) to a third party (delegate), although the delegator remains liable.
Who is a Donee Beneficiary?
A third party intended to benefit from a contract as a gift.
What is Duress in contract law?
A wrongful act or threat that overcomes the free will of a party and induces them to enter into a contract.
What are Expectation Damages?
Damages awarded to put the non-breaching party in the position they would have been in if the contract had been fully performed.
What is the Firm Offer Rule (UCC)?
An offer by a merchant to buy or sell goods in a signed writing that states it will be held open for a specified time (or a reasonable time, not exceeding three months) is irrevocable without consideration.
Define Implied-in-Fact Contract.
A contract formed by the conduct of the parties, rather than by express words.
What is an Implied-in-Law Contract (Quasi-Contract)?
A legal obligation imposed by law to prevent unjust enrichment, even in the absence of a true contract.
Who is an Intended Beneficiary?
A third party whom the contracting parties intended to benefit from their agreement and who has the right to enforce the contract.
What is the Mailbox Rule?
The principle that an acceptance sent by mail or other appropriate means is effective upon dispatch, not upon receipt.
Define Material Breach.
A substantial failure to perform a contractual duty that defeats the essential purpose of the contract.
What is the Mirror-Image Rule (Common Law)?
The requirement that the offeree’s acceptance must precisely match the terms of the offer.
What is a Mistake in contract law?
A belief that is not in accord with the facts. Can be mutual (both parties share a mistake) or unilateral (one party is mistaken).
Define Offer in contract law.
An objective manifestation of a willingness by the offeror to enter into an agreement that creates the power of acceptance in the offeree.
What is the Objective Theory of Contracts?
The principle that a party’s intention to enter into a contract is judged by their outward, objective manifestations as interpreted by a reasonable person in the other party’s position.
What does the Parol Evidence Rule entail?
A rule that prohibits the introduction of prior or contemporaneous extrinsic evidence to contradict the terms of a fully integrated written contract.
What is Promissory Estoppel?
A doctrine under which a promise lacking consideration may be enforced to prevent injustice if the promisor reasonably expected reliance, the promisee relied to their detriment, and injustice would otherwise result.
What are Reliance Damages?
Damages awarded to compensate the non-breaching party for losses incurred in reasonable reliance on the contract.
