exam 2 Flashcards
contract
promise/set of promises. when you form a contract, you have to have intent to be bound
contractual intent
forming contract uses objectives
objective and subjective intent
objective: what it is
subjective: based on personal impression
elements to a contract (list)
- agreement
- competent parties
- genuine assent
- consideration
- legal purpose/object
- legal form
words ending in “or”
acting party (ex: lessor)
words ending in “ee”
party acted upon (ex: lessee)
formal contracts
written contracts/agreements where the formality signifies the parties intention to abide by the terms
contracts under seal
stamped wax or signature followed by the word seal
recognize contracts
contract of record, promise, or obligation entered into before a court (EX: a written pledge to go to trial)
negotiable instruments
drafts, promissory notes, checks and certificates, that in proper form give special rights as negotiable commercial paper
enforceability of contracts
valid, voidable, void ab intio, valid but unenforceable
valid
agreement that is binding and enforceable
voidable
agreement that is otherwise binding and enforceable but may be rejected at the option of one of the parties
void ab intio
void from the beginning (lacking capacity)
executed contracts
contracts that have been completely performed (nothing remains to be done)
executory contract
one party still has something to do
bilateral contract
promise for a promise (conditioned by the word IF) ex: ill paint your house IF you pay me $100
unilateral contract
promise for an act (no if) ex: 100$ for finding lost puppy
option contract
contract that allows you to get into a second contract after the fact
right to 1st refusal
right of a party to meet the terms of a proposed contract before it is executed (like a real estate purchase agreement)
expressed contract
99% of all contracts (governed by law) terms of the agreement of the parties
