Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Law > Contracts > Flashcards

Contracts Flashcards

You may prefer our related Brainscape-certified flashcards:
Civil Procedure 1L flashcards MBE flashcards MPRE flashcards
1
Q

Introduction

  • What is the law of contracts and what it is based on?
  • What are most agreements impose?
  • What is the definition of a contract?
A
  • The law of contracts is the basis of business, it is based on the right of a person to assume obligations or give something up in exchange for a benefit
  • Most agreements that are LEGAL CONTRACTS impose both rights and responsibilities of each party
  • A contract is an agreement btwn two or more people that imposes regulations, obligations, rights and duties that the law can enforce
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q
  • Violations of agreements:
  • What do all contracts involve?
  • A contract is made with…
  • A contract is said to be valid with 5 essential elements:
  • If one is missing:
  • If all are present:
A
  • Allows parties to seek justice through courts if they suffer loss
  • A contract is made with every purpose
  • All contracts involve agreements, but NOT all agreements become contracts
  • A contract is made w/ every purchase
    1. Offer and Acceptance 2.Consideration 3.Capacity 4.Consent 5.Legal Purpose
  • Void (invalid)
  • Valid and enforced in courts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Types of Contracts

A
  • Two main types
    1. Nominate contracts
    2. Simple contracts
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Nominate Contracts

  • Certain contracts must be:
  • Seal indicates
  • Both are aware
A
  • Certain contracts must be in writing, signed, witnessed and under seal
  • The seal indicates that both parties have given the matter thought before entering the contract.
  • Both are aware of rights and responsibilities, and that both intend to fulfill legal obligations
  • Official and notarized (mortgage, property deeds)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

General Obligations Contracts

  • Simple Contracts are
  • Simple contracts can be: (3)
  • Written contracts must contain:
A
  • Contracts arent required to be signed under seal are SIMPLE CONTRACTS
    1. Oral (valid but not easy to reinforce)
    2. Written (need not formal, but must contain:)
    a) basic terms, b)date c)signature
    3. Implied by conduct or performance (taxi or restaurant)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

All contracts are also:

A
  • Express or implied
    1. Express contract which all terms and conditions are clearly defined
    2. Implied contract is one that is suggested by a person’s actions and in which nothing is precisely stated or written
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Offers

  • Before 2 parties have a legally binding contract:
  • Meeting of the minds:
  • Offer must be:
  • Offers made as a joke or in anger
  • An offer must be communicated
A

-One part (the offeror) must make a clear, precise and serious offer and the offeree can accept the offer
-Both parties clearly understand their rights and responsibilities (ordering food)
-Definite and serious or isn’t valid
-Aren’t serious offers and aren’t enforceable in courts
-By the offeror or offeree before acceptance occurs (offers made by mail aren’t valid until they are received)
-

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q
  • Identical offers that cross in mail:

- An offer can be communicated:

A
  • Don’t constitute as contracts, as neither party has accepted the other party’s offer
  • An offer many be communicated to a specific person or to people in general (publisac or offering a reward)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Invitations to Buy

  • What are newspapers ads, Tv ads, magazine offers?
  • What are considered to be valid by the courts
A
  • Are all invitations to do business, to make the customer make an offer to buy an item advertised. Only becomes a contract when customer offers to purchase item, and store accepts money
  • Some ads are precisely worded and serious intended offer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Terminal Of an offer

  • Until an offer is accepted…
  • An officer can protect oneself by including a…
A
  • No legal rights or obligations

- Including a deadline

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q 
An Offer may be terminated by:
(part 1)
-If no deadline of an offer:
-An oral offer ends:
-An offer lapses when:
-All above must occur:
-If it happens after:
A

-The Lapse of an offer:
if no deadline, an offer may expire after a reasonable amount of time
An oral offer ends after the parties leave one another, unless extra time is given (let me know by tuesday)
An offer lapses when one of the parties:
1.Dies
2.Becomes bankrupt
3.Is declared insane
-All of the above must occur before the offer has been accepted
-If it happens after acceptance, the contract is valid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

An offer may be terminated by:
(Part 2)
-Offer may be withdrawn
Exception to this rule

A

-Revocation of an offer
An offer may be withdrawn by the offeror before the offeree accepts
-Both parties have a separate contract to hold it open for a specific time (buying a house, putting down a payment)
This is called PLACING AN OPTION
Also CONDITIONAL ACCEPTANCE (Cegep applications)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

An offer may be terminated by:
(Part 3)
Definition
Brings original offer…

A

-Counter Offers
The offeree is in general agreement but wants to change one or more terms of the original offer
This counter offer brings the original offer to an end and then becomes a new offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Acceptance

  • Must be made in:
  • To be valid
  • If offeree does not accept:
A
  • Made in writing or by conduct in a manner that is acceptable by the courts, proof is needed (email,text,letter)
  • Acceptance of offer must be unconditional
  • The offer in the manner offered, then the acceptance is really a counter-offer and it becomes a new offer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Communication of Acceptance

  • No contract exists until:
  • Comm of acc should be done:
  • If letter of acceptance is lost in mail:
A
  • Acceptance is actively communicated to the offeror
  • In the same manner that it was offered or in a manner that is acceptable by the courts
  • Parties are still bound to the contract, the offeree needs to have proof that the letter was mailed (registered mail)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q
  1. Liability
  2. Ratification
  3. Repudiation
  4. Restitution
A
  1. Legal responsibility for a wrongful action
  2. Act of approving or confirming a contract that would otherwise be voidable, opposite of repudiation
  3. Act of rejecting or disclaiming a contract to avoid being liable, opp of ratification
  4. Act of making good, act of returning that with has been unlawfully taken away from a person
17
Q

Consideration

A

Something of values is exchanged between parties (Consumer buys a shirt at retail store, the buyer’s consideration is the shirt while the store’s consideration is the payment for the shirt)

18
Q

Types of Consideration

Two most common legal forms of consideration are:

A

1.Present consideration
2.Future consideration
3.Past consideration
present and future

19
Q
  1. Present consideration

2. Future consideration

A
  1. Present consideration is usually the exchange of money for goods and services
  2. When both parties promise to do smt in the future. (Buy goods on credit, or a sports-team trades a player now for future consideration.) Both present and future considerations are valid forms of consideration
20
Q

Past consideration

A

A promise by one person to pay another for free services that have already been performed
Past consideration is not legally binding, no obligation to pay
(Friend helps you paint, you want to pay them)

21
Q

Charitable Donations

  • Donations are often regarded as:
  • The courts may enforce charitable donations if: (3)
A
  • Gifts, not necessarily enforceable in courts bc there’s usually no consideration received by the donator
    1. Community will benefit from the money
    2. Recipient has already spent the money in anticipations of the donations (building the hospital has begun)
    3. Contract is under seal and/or the donor will receive consideration
22
Q

Capacity

  • Laws have been established to:
  • Contracts may not be binding when entered by: (3)
  • The above are considered:
A
  • To protect certain groups of people from being exploited bc of age,inexperience or mental ability
    1. Minors (except passports, medicaire, etc)
    2. Mentally incompetent (needs to be proven)
    3. Intoxicated (need to be proven)
  • Lacking the ability or capacity to make sound decisions
23
Q

Minors are contracts

  • What is a minor?
  • A voidable or null contract is:
A
  • Under age of majority (Quebec is 18)
  • Parties has right to make the contract binding or not (minor may enforce null contract, but cant be enforced against the minor), which also depends on emancipation
24
Q

Contracts for necessities

  • To protect those dealing w/ minors:
  • Legal status of minors’ contract is determined by 5 conditions
A
  • Not all contracts by minors are null
    1. On age (14+)
    2. Emancipated or not
    3. Amount of money involved in contract
    4. Employment
    5. Living away from home
25
Q
  • Necessities
  • Non-necessities
  • If court feels that minor has been taken advantage of:
  • Minors are obligated to:
A
  • Items which every needs on a daily basis (food, clothes,shelter,edu,health services and employment contracts)
  • Items that arent essential to survival
  • Then the contract wont be enforceable
  • Fulfill contracts for necessities, only if reasonable
26
Q

Misrepresentation of age

  • Because of the protection given to minors:
  • To protect themselves:
A
  • The retailers are very cautious in dealing w/ minors

- Many retailers require an adult to co-sign any contract involving a minor

Law (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions