Contracts Flashcards
What automatically terminates an offer?
Operation of law:
Death or insanity of either party
Destruction of subject matter
Illegality of subject matter
What are the two rules of acceptance?
Mirror Image Rule - must accept without alteration
Early Acceptance Rule - acceptance effective when sent, unless exceptions apply
When are offers, revocations, and rejections effective?
When received by other party
What are rules for consideration?
Must provide value as a result of the contract
Cannot be past consideration or a pre-existing duty
If modify contract, must provide new consideration
What makes a contract voidable?
Duress
Undue influence
Misrepresentation of a material fact - fraud in inducement
Mistake - mutual or unilateral
Capacity - minor, intoxication, incompetent
What makes a contract void?
Extreme duress
Fraud in execution
Illegal subject matter
Incompetent - once ruled by court
What is the Statute of Frauds?
GROSS Goods sale >$500 Real estate sales Over one year required to perform contract Suretyship Statements in consideration of marriage
What are exceptions to written requirement for sale of goods >$500?
SPAM Specifically manufactured by seller Partially performed contract Admit in court that made contract Merchant does not object within 10 days
What is Parol Evidence Rule?
Whenever written contact exists, the following is barred from court:
Prior written or oral contracts
Concurrent oral contracts
What is allowed under Parol Evidence Rule?
Subsequent oral or written modifications to contract
Fraud in execution
Oral discussions prior to contract that clarify
When can contract rights not be assigned?
Contract prohibits it
Duty is personal in nature
Materially alters responsibilities of other party
Involves specialized personal services
