Contracts Pt. 1 Flashcards
What is a contract?
a promise that the law will enforce
What are different types of contracts?
express contract - formed by language
implied-in-fact contract - formed by conduct
implied-in-law contract or quasi-contract - not a contract at all; it is a remedy that allows a plaintiff to recover a benefit unjustly conferred upon the defendant to prevent unjust enrichment
unilateral contract - one promise which is given in exchange for performance; the contract is not formed until the performance is completed
bilateral contract - two promises where one is exchanged for the other; the contract is formed as soon as the promises are exchanged
What are the 3 requirements of a legally enforceable contract?
an agreement made up of an offer and an acceptance
an exchange of consideration (something of legal value)
a lack of defenses
What is mutual assent?
one party will make a proposal and the other party will agree to it “a meeting of the minds”
T/F: are advertisements considered an offer?
False; they are deemed an invitation seeking an offer because it is not addressed to anyone in particular
if an ad limits the scope (ex. first five customers) then it can be considered an offer
T/F: either party, or operation of law, can terminate an offer
True; revocation = offeror and rejection = offeree
general rule: offeror can revoke an offer any time before acceptance by communicating the revocation to the offeree (exception: consideration is paid to keep the offer open [option contract])
the offeree can reject expressly (by saying “no”) or by offering up a counteroffer which is both a rejection and an offer
rejection is effective once received; if either party dies or becomes incompetent prior to acceptance, the offer is terminated by operation of law (but an option contract is not terminated by the death of a party)
What is the mailbox rule?
it only applies to acceptances and is effective on dispatch (it is irrelevant if a properly addressed acceptance is lost or delayed); revocations, rejections, and counteroffers are effective only upon receipt
What are the 2 elements of consideration?
something of legal value is given by each party (constitutes either a detriment to the promisee or a benefit to the promisor) and there must be a bargained-for exchange (does not apply to gifts and things given/performed before the promise was made)
What is bargained-for exchange?
something is not consideration unless it was given in exchange for other consideration
