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BLAW 300 > Contracts > Flashcards

Contracts Flashcards

1
Q

What is a Contract?

A

An agreement between two parties that is enforceable in a court of law

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2
Q

What is an agreement?

A

An offer to the contract and an agreement to the contract.

Promises in the agreement (terms of the agreement)

Agreed on essential obligations to each other

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3
Q

What is Complete?

A

The agreement must be complete

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4
Q

What is Deliberate?

A

Both parties must want to enter into a contractual relationship.

Intention to create legal relations.

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5
Q

What is Voluntary?

A

Agreement must be freely chosen.

• No unfairness or coercion

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6
Q

What does it mean by Two or More Competent Persons? and what is the exception?

A

There must be two parties to any contract, who must have a legal capacity.

•PRIVITY – ONLY the parties to the contract can sue or be sued or enforce their rights and duties under the contract

Exception: Subrogation

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7
Q

What is Supported by Mutual Consideration

A

A contract involves a bargain or exchange between parties. One party must give something of value in exchange for receiving something in value from the other party.

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8
Q

What does it mean by Not Necessarily in writing?

A

Oral contracts are enforceable.

Preferable for negotiators to get the contract in writing.

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9
Q

What are the pre-contractual factors factors?

A
  • Begin with communication such as discussing possibilities – negotiation stage
  • ETHICAL QUESTION: is it ethical to bluff during business negotiations?
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10
Q

What is an offer? Who is the offeror and who is the offeree

A

A promise to enter a contract on specified terms as soon as the offer is accepted.

Offeror: Person who makes an offer
Offeree: Person whom an offer is made

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11
Q

What is Certainty of Offer?

A

Only a complete offer can form a basis of a contract.

All essential terms must be set out or contract will fail.

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12
Q

What is an Agreement?

A

Before a contract can be in place, parties must come to an agreement when they have reached a consensus to their rights and obligations.

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13
Q

What is invitation to treat?

A

Willingness to do business.

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14
Q

What is the standard form of contract? Give an example of what type of business this is.

A

Take it or leave it contract.
Customer agrees to a standard set of terms that favors the other side.

ex. borrowing money from the banks

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15
Q

Name 5 ways an offer can be terminated

A

Revocation
-Withdrawal from an offer (anytime before acceptance)

Lapse
-Expiration of an offer after a specified or reasonable period

Rejection
-Refusal to accept an offer

Counteroffer
-Rejection of one offer and proposal of a new one

Death or insanity

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16
Q

What is acceptance?

A

Unqualified willingness to enter a contract on terms of the offer.
Then a contract is formed

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17
Q

What is Communication of Acceptance?

A

Legal acceptance, the offeree must communicate by words or by conduct.

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18
Q

What is Consideration and gratuitous promise?

A

Consideration: The price paid for a promise.

Gratuitous Promise: a promise for which no consideration is given.

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19
Q

What is Pre-existing legal duty?

A

A legal obligation that a person already owes.

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20
Q

What is Promissory Estoppel?

A

A doctrine whereby someone who relies on a gratuitous promise may be able to enforce it.

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21
Q

What is Rebuttable Presumption?

A

Legal Presumption in the favor of one party that the other side can seek to rebut or dislodge by a lending evidence to the

assumption that is made in the law that will stand as a fact unless someone comes forward to contest it and prove otherwise.

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22
Q

What is an expressed term of a contract?

A

Provision in a contract that states or makes explicit one party’s promise to another.

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23
Q

What is an implied term of a contact?

A

A provision in a contract that is not expressly included, but is necessary to give effect to the parties’ intention.

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24
Q

What is rules of construction?

A

Guiding principles for interpreting or constructing the terms of a contact.

25
Q

What is entire contract clause?

A

Term in the contract that the parties agree that their contract is complete as written.

26
Q

What is contractual quantum meruit?

A

Awarding one party a reasonable sum for the goods and services provided under a contract.

27
Q

What is Parol evidence rule?

A

Limits the evidence a party can introduce concerning the contents of the contract.

28
Q

Conditions Subsequent

A

Event or circumstance that, when it occurs, brings an existing contract to an end.

29
Q

Conditions Precedent

A

Event or circumstance that, when it occurs, suspends the parties obligations to perform their contractual obligations.

30
Q

Limitation of liability clause

A

Term in a contract that limits liability for breach to something less than would be otherwise recovered.

31
Q

Exemption clause

A

Term in a contract that identifies events causing loss for which there is no liability.

32
Q

Liquidated damages clause

A

Term of a contract that specifies how much one party must pay to the other in the event of a breach.

33
Q

What is a voidable contract?

A

in certain circumstances, an aggrieved party can choose to keep or force to bring a contract to an end.

34
Q

Void Contract

A

Involving a defect so substantial that it is of no force or effect

35
Q

Legal capacity

A

ability to make binding contracts

36
Q

Age of majority

A

Age at which a person becomes an adult for legal purposes. 18 or 19 years of age

37
Q

Economic duress

A

Threats of economic harm that coerces the will of the other party and results in a contract

38
Q

Undue influence

A

Unfair manipulation that compromises someone’s free will.

39
Q

Unconscionable contract

A

Unfair contract formed when one party takes advantage of the weakness of another

40
Q

Misrepresentation

A

False statement of fact that causes someone to enter a contract

41
Q

Fraudulent, Negligent, and Innocent Misrepresentation

A

Fraudulent: Deliberate intent to mislead or make a statement recklessly without know or believing it is true

Negligent: Makes statement carelessly or negligently

Innocent: Neither negligent or fraudulent, but misrepresented a fact

42
Q

Mistake

A

Error made by one or both parties that seriously undermines a contract.

43
Q

Rescission

A

Misrepresentation remedy that results in parties being returned to the pre-contractual conditions. (Cancelling the contract)

44
Q

Common Mistake

A

Both parties to agreement share the same fundamental mistake.

45
Q

Illegal contract

A

Contract cannot be enforced because it is contrary to legislation or public policy.

46
Q

Public policy

A

Community’s common sense and common conscience.

47
Q

Non-solicitation clause

A

Clause forbidding contract with the business’ customers

48
Q

Non-competition clause

A

Clause forbidding competition for a certain period of time.

49
Q

Guarantee

A

Promie to pay the debt of someone else, should that person default on the obligation.

50
Q

Novation

A

Substitution of parties in a contract or the replacement of one contract with another.

51
Q

Assignment

A

Transfer of a right by an assignor to an assignee

52
Q

Frustration

A

Termination of a contract by an unexpected event.

Or change that makes performance functionally impossible or illegal.

53
Q

Breach of a Condition

A

an important term that gives the innocent party the right to terminate the contract and claim damages.

54
Q

Breach of a Warranty

A

a minor term that, if breached, gives the innocent party the right to claim damages only.

55
Q

Innominate Term

A

A term that can’t easily be classified as either a condition or a warranty.

56
Q

fundamental breach

A

a breach of contract that affects the foundation of the contract

57
Q

Anticipatory breach

A

A breach that occurs before the date named for performance.

58
Q

3 Damages Remedies

A

Damages: Monetary compensation

Expectation Damages: Provide plantiff with monetary equivalent to contractual performance

Punitive Damages: Awarded to the plaintiff to punish the defendant for malicious, oppressive, and high-handed conduct

59
Q

6 Other Remedies

A

Duty to Mitigate: the obligation to take reasonable steps to minimize the losses resulting from a breach of a contract.

Specific performance: The court orders the party who breached to do exactly what the contract obligated him to do

Injunction: Promises not to engage in specific activities, disregarding these promises is a breach of contract.

Rescission: results in parties being returned to the pre-contractual conditions

Unjust Enrichment: One party undeservedly or unjustly secured a benefit at the other party’s expense.

Quantum Meruit: Amount that is reasonable given the benefit the plaintiff has coffered.

BLAW 300 (10 decks)

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