Contractual Relationships I: Chapter 10 Flashcards

1
Q

What is the purpose of a contract?

A

Contracts exist to make business matters more predictable

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2
Q

judicial restraint

A

a court taking a passive role and requiring parties to fulfill whatever obligations they agreed to (whether the deal was wise or foolish)

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3
Q

judicial activism

A

where a court will ignore certain provisions of a contra t or an entire agreement if the judge believes that enforcing the deal would be unjust

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4
Q

4 elements of a contract

A

Agreement, consideration, legality, and capacity

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5
Q

Agreement

A

one party must make a valid offer and the other party must accept it

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6
Q

Consideration

A

There has to be a bargaining that leads to an exchange between the parties

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7
Q

Legality

A

The contract myst be for a lawful purpose

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8
Q

Capacity

A

The parties must be adults of sound mind

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9
Q

Consent

A

Neither party may trick or force the other into the agreement

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10
Q

Written Contracts

A

Some contracts must be in writing to be enforceable

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11
Q

Third Party interests

A

Some contracts affect people other than the parties themselves

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12
Q

Performance and Discharge

A

If a party fully accomplishes what the contract requires, his duties are discharged

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13
Q

Remedies

A

A court will award money or other relief to a party injured by a breach of contract

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14
Q

Contract

A

a promise that the law will enforce

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15
Q

Noncompetition Agreement

A

a contract in which one party agrees not to compete with another in a stated type of business

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16
Q

Bilateral Contract

A

a binding agreement in which each party has made a promise to the other

17
Q

Unilateral Contract

A

a binding agreement in which one party has made an offer that the other can accept only by action, not words

18
Q

Express Contract

A

a binding agreement in which the parties explicitly state all important terms

19
Q

Implied Contract

A

a binding agreement created not by explicit language but by the informal words or conduct of the parties

20
Q

Executory Contract

A

a binding agreement in which one or more of the parties has not fulfilled its obligations

21
Q

Executed Contract

A

a binding agreement in which all parties have fulfilled all obligations

22
Q

Valid Contract

A

a contract that satisfies all of the law’s requirements

23
Q

Unforceable Agreement

A

occurs when the parties intend to form a valid bargain but a court declares that some rule of law prevents enforcing it

24
Q

Voidable Contract

A

an agreement that, because of some defect, may be terminated by one part, such as a minor, but not by both parties

25
Void Agreement
one that neither party can enforce, usually because the purpose of the deal is illegal or because one of the parties has no legal authority to make a contract
26
Promissory Estoppel
an exception to there being no contract in place; when the defendant made a promise that the plaintiff relied on
27
Quasi-Contract
an exception to there being no contract; the defendant did not make any promise but idd receive a benefit from the plaintiff
28
arguendo
that there was a clear and unambiguous promise
29
quantum meruit
"As much as she deserves" the damages awarded in a quasi-contract case
30
What is the purpose of UCC
Uniform Commercial Code; intended to facilitate the easy formation and enforcement of contracts in a fast-paced world; commerce (sale and leasing of goods, bank deposits, investment securities)
31
Article 2 of the UCC
governs the sale of goods; "goods" means anything movable, except for money, securities, and certain legal rights
32
In a mixed contract for goods and services, does article 2 govern?
Only if the primary purpose was the sale of goods
33
Restatement of Contracts and Restatement (Second) of Contracts
ALI - American Law Institute; 1932 and 1979; attempted to codify what its members regarded as the best rulings of contract law; not the law anywhere
34
When does the common law govern?
When the contract is for services, employment, or real estate
35
What happens when two parties make an oral agreement that the law requires to be in writing?
It is an unenforceable agreement
36
What happens when one party lacks capacity to make the contract ?
A voidable contract - they may escape liability.
37
What happens if the purpose of the deal is illegal?
It's a void agreement - the law will ignore the deal regardless of what the parties want
38
When using unjust enrichment, do the courts imply a contract where none existed?
Yes