Exam 2 Flashcards
Contract
a promise for the breach of which the law gives a remedy or the performance of which the law in some way recognizes as a duty
types of contracts
bilateral, unilateral, executory,executed, express, implicit,
bilateral contract
both parties make a promise
unilateral contract
one party makes a promise that the other party can accept only by ACTUALLY doing something
executory contract
one or more parties have not yet fulfilled their obligations
executed contract
all parties have fulfilled their obligations
specific types of contracts
valid, unenforceable agreement, voidable, void
express contract
two parties explicitly state all the important terms of their agreement
implicit contract
the word and conduct of the parties indicate that they intended an agreement
sources for contract law
restatement of contracts, uniform commercial code, common law
elements of a contract
offer, acceptance, consideration, capacity, legality, barriers to enforcement
statute of frauds
regulates contracts that must be in writing to be enforced
parol (spoken) evidence rule
governs admission of non-written evidence about agreement, arising before or at time of signing
what is used to determine if a performance has occurred?
substantial performance, material breach, excuses non breaching party, nonbreaching party may seek damages
factors for determining material breach
lost benefit to the injured party
can the injured party be compensated
forfeiture by the breaching party
likelihood of cure
good faith and fair dealing
contracts are discharged by anticipatory repudiation by
agreement or impossibility
commercial impracticability
event neither party anticipated makes fulfilling the contract extraordinarily difficult and unfair for one party
frustration of purpose
event neither party anticipated means contract now has no value for one party
type of monetary damages
consequential and incidental
liquidated damage
pre-negotiated amount that the parties have agreed about beforehand, if there is a breach of contract
mitigated damages
injured party must act reasonably to minimize his losses
types of remedies
monetary damages, incidental, non-monetary damages, reformation
sale
passing of title from seller to buyer for a price
goods
things movable at the time of identification to the contract
warranty
a promise on which one can rely
merchantability
goods are fit for the ordinary purpose for which they are sold
what does the Magnuson-Moss Warranty Act do?
regulates terminology and does not require sellers to provide any warranties
full warranty
repair or replace free or charge
limited warranty
there is some sort of charge involved