Contracts Flashcards
What is a Contract?
A contract is an agreement that is enforceable by a court of law. A legally enforceable agreement.
A _________________ is an agreement that is enforceable by a court of law. A legally enforceable agreement.
contract
Every contract involves at least two parties: (parties?)
- the offeror- the party who makes an offer to enter into a contract; and
- the offeree - the party to whom the offer is made
What are the element of a contract?
- Agreement (which requires offer and acceptance)
- Consideration
- Capacity
- Lawful object
To be an enforceable contract, the following four basic elements (requirements) must be met:
- Agreement
- Consideration
- Capacity
- Lawful object
Agreement, consideration, capacity, and lawful object are the 4 basic elements of what?
An enforceable contract
What does agreement require?
Agreement requires offer and acceptance.
Offer is the first half of the __________________.
Agreement
_______________ is the second half of the agreement.
Acceptance
The _____________ sets forth the terms under which the offeror is willing to enter into the contract.
offer
The ___________ has the power to create an agreement by accepting the offer.
offeree
The offeree has the power to create an agreement by ______________________.
accepting the offer
For the offer to be effective: (3 things)
-The offeror must objectively intend to be bound by the offer;
-The terms of the offer must be definite and reasonably certain;
and
-The offer must be communicated to the offeree.
A valid offer gives the offeree the power to accept the offer, creating a ____________.
Contract
The offeror may revoke (withdraw) an offer at ______________
__________________________.
any time prior to acceptance.
What is the mirror image rule?
If acceptance is not a mirror image of the offer, it is not acceptance. It is a counter offer.
The power to accept the offer, creating a contract, does not continue ____________________.
indefinitely
The offeror may revoke (withdraw) at any time _______________________________.
prior to acceptance
The offer is also terminated if the oferee _________________________.
rejects it
A ____________________ terminates the old offer and creates a new offer.
counteroffer
Name 3 ways for Termination of the Offer
- The offeror may revoke (withdraw) an offer at any time prior to acceptance.
- The offer is also terminated if the offeree rejects it.
- A counteroffer terminates the old offer and creates a new offer.
____________________ is assent by the offeree to the terms of the offer.
Acceptance
Only the _____________ has the legal power to accept an offer and create a contract.
offeree
Performance can constitute ________________.
acceptance
What is acceptance?
Acceptance is assent by the offeree to the terms of the offer.
Name 2 Contract types
Express Contracts and Implied Contracts
What is an Express Contract?
An express contract is stated in oral or written words.
What is an Implied Contract?
Implied contracts are implied from the conduct of parties. Must meet three elements:
- Plaintiff provided property or services to defendant.
- Plaintiff expected to be paid by defendant and did not provide property or service for free.
- Defendant had chance to reject the property or service provided by plaintiff, but failed to do so.
What is consideration?
Consideration is the thing of value given in exchange for a promise or something tangible.
_______________________ is the thing of value given in exchange for a promise or something tangible.
Consideration
What are the most common types of consideration?
Tangible payment and performance of act
What is a bargained-for-exchange?
consideration
bargained-for-exchange
What you bargain for- something given on both sides. Promise and performance mutually inductive.
Gift promises are also called _________________________.
gratuitous promises
Are gift promises enforceable? Why or why not?
Gift promises are NOT enforceable because they lack consideration.
Minors generally ____________ have the capacity to contract.
do NOT
Mentally incompetent persons _________________ have the capacity to contract.
do NOT
Capacity of a business to contract ___________________.
does not look at individual signer.
Businesses ________ have the capacity to contract.
Do
Being under the influence
is generally not a defense. Must be soooo drunk you can’t understand anything.
Lawful object
You must contract for something legal.
A contract to perform an illegal act is an ___________.
illegal contract
A contract to perform an illegal act is an illegal contract. Illegal contracts are __________.
void
Ratification Rules
not necessarily enforceable K, but then continue to do it, you have ratified it
What Is K’s single greatest myth?
that you have days after you sign it to cancel
Statute of Frauds requires what kinds of contacts to be in writing?
- K for land
- K that cannot be fulfilled in one year
- K for goods over $500
- K to pay the debts of another
Breach of contract
failure to perform
