Contracts Flashcards
What is a contract?
Is an agreement that is enforceable by a court of law
What are the agreements parties called?
The offeror
The offeree
What does offeror means?
The party who makes an offer to enter into a contract
What does oferee means?
The party to whom the offer is made
What are the elements of a contracts?
There are 4
- An agreement with offer and acceptance
- Consideration
- Capacity
- Lawful object
What does the offer sets forth?
The terms under which the offeror is willing to enter into a contract
What does an agreement require?
Both Offer and acceptance
What power has the offeree to creat an agreement?
Accepting the offer
Requirements for an offer to be effective
- The offeror must be objectively intended to be bound by the offer
- The terms of the offer must be defined or reasonably certain
- The offer has to be communicated to the offeree
What does acceptance mean?
The offeree accepts the terms of the offer
When can an offer be terminated?
The offeror can revoke an offer at any time prior to the acceptance.
If the offeree rejects it.
A counter offer terminates the old one and creates a new one.
Who has a legal power to accept an offer?
The offeree has legal power to accept and crete a contract
What is an expressed contract?
Are contracts stated in oral or written words
What is an implied contract?
Are contracts implied from the conduct of the parties
What elements must an implied contract meet?
- Plaintiff provided property or services to defendant
- Plaintiff expected to get paid by the defendant and did not provide services or property for free
- The defendant had the chance to reject the property or service from the plaintiff but didn’t do it
What is consideration
Is the thing of value given in exchange for a promise or something tangible
What are the most common types of consideration?
A tangible payment or the performance of act
How are gift promises also called?
Gratuitous promises
Are gift promises unenforceable?
No, because they lack consideration
Who doesn’t have the capacity to contract?
Minors Mentally incompetent people Presumption of competence Under the influence Capacity of business to contract
What does UCC stands for
Uniform Commercial Code
Mention contracts that requiere to be in writting
For land
That cant be fulfilled in one year
Goods over $500
To pay the debt of another
Which state has not adopted all of the UCC?
Louisiana
How many articles has the UCC?
11 articles
Under 2 there is 2 and 2 A
Under 4 there is 4 and 4 A
What is holding?
Is a ratification rule
What is breach of contract?
The failure to perform a contract
What does objectively mean?
From the outside
What does subjectively mean?
From the inside
Is advertisement an offer?
No, it is an invitation to do something
Does performance constitutes an offer acceptance?
It could
What does subject matter of the contract equals to?
Bargain for exchange
Called CONSIDERATION
What is lawful object?
A contract to perform an illegal act
What does the letter K stands for?
Contract
What is failure to perform a contract called?
Breach of contract
How many days do you have to cancel a contract?
Once you sign it you are bond to it
Give examples of contracts you might breach
Door-to-door sales
Some home improvement contracts
Morgage or lien in your home
Health clubs, time sharing condos
A(n) _______________ is an agreement that is enforceable by a court of law; a legally enforceable agreement.
Contract
Every _______________ has at least two parties: an offeror, and an offeree.
Contract
The _______________ is the party who makes an offer to enter into a contract (K).
Offeror
The _______________ is the party to whom the offer is made.
Offeree
To be an enforceable contract, the following four basic elements (requirements) must be met:
Agreement; consideration; capacity; and lawful object
Agreement requires _______________ and _______________.
Offer and acceptance
The _______________ sets forth the terms under which the offeror is willing to enter into the contract.
Offer
The offeree has the power to create an agreement by accepting the _______________.
Offer
Is this a valid offer?
“Are you interested in selling your house for $200K?”
______________________________
Why, or why not?
I is not an offer because it is an invitation to make an offer, or to negotiate
Is this a valid offer?
“I will buy your house for $200K.”
______________________________
Why, or why not?
Yes it is a valid offer because it indicates the offeror’s present intent to contract
List the three requirements for an offer to be effective:
The offeror must objectively intend to be bound by the offer; the terms of the offer must be definite or reasonably certain; and the offer must be communicated to the offeree
Termination of the offer. A valid offer gives the offeree the power to accept the offer, creating a contract.
Does this power continue indefinitely?
No
When may the offeror revoke (withdraw) an offer?
At any time prior to acceptance
What happens when the offeree rejects the offer?
The offer is terminated
A _______________ terminates the old offer and creates a new offer.
Counteroffer
Explain acceptance.
Assent by the offeree to the terms of the offer
What is Statutes of Fraud?
Is a law that say that mayor contracts should be in writing
What contracts should be in writing?
Of things worth more than $500
To buy land
To pay someone elses debt
Contracts that can not be executed in a year
How do I collect a judgment
If you are awarded a judgment, it will become final if not appealed within ten (10) days.
What is mediation and how can it help me?
Mediation is a process in which an impartial person, the mediator, facilitates communication between the parties to promote understanding among the parties, reconciliation, and settlement.
The mediator facilitates in
(1) defining the issues; (2) removing obstacles to communication; (3) exploring alternatives to resolution; and (4) reaching an agreement.
If I have a dispute with a merchant, what can I do?
- Send a letter by registered mail;
- File a complaint with the Better Business Bureau and/or State Attorney General’s Office (send a copy of the letter to the merchant);
- Mediate your dispute with a third party; or
- File a claim in small claims court.
What kind of writing is required under the Statute of Frauds?
A writing will satisfy the Statute of Frauds if it contains: (1) the identity of the contracting parties; (2) a description of the contractual subject matter; (3) the terms and conditions of the agreement; and (4) the signature of the party against whom the contract is being enforced.
Express Warranties
An express warranty is almost anything said about the product or service that the buyer relies upon when he buys it.
Implied Warranties
An implied warranty is one that the law imposes automatically.
Special Statutory Warranties
The Texas Lemon Law is not a traditional warranty, but is properly thought of in the same terms. It applies to the sale of new cars
The remedies under the Lemon Law can never be disclaimed.
DTPA
Deceptive Trade Practices Act
types of warranties
implied, expressed and special statutory warrantes
