Exam 2 Terms Flashcards
Contract
an agreement creating obligations enforceable by law
Offer
An objective manifestation of willingness by the offeror to enter into an agreement that creates the power of acceptance in the offeree
Acceptance
a manifestation to be bound by the terms of the agreement
Consideration
A bargain for exchange (what one party gets for their promise under a contract)
Uniform Commercial Code
the body of laws governing commercial transactions in the US.
Article II of the UCC
Deals with the sales of goods, does not apply to real estate
Unilateral Contract
one party promises to do something in return for the act of another party
Bilateral Contract
a promise by one party in exchange for the promise of another party
Assignment
when one party to an existing contract (the “assignor”) hands off the contract’s obligations and benefits to another party (the “assignee”). Ideally, the assignor wants the assignee to step into his shoes and assume all of his contractual obligations and rights.
Delegation
the act of giving another person the responsibility of carrying out the performance agreed to in a contract.
Void
the transaction is treated as if it never existed
Voidable
a valid contract unless and until one of the parties takes action to void it
Mailbox Rule
acceptance is valid when it is sent and revocation is not valid until it is received
Counteroffer
an offer made in response to another
Mirror Image Rule
also referred to as an unequivocal and absolute acceptance requirement states that an offer must be accepted exactly with no modifications. The offeror is the master of one’s own offer.
Liquidated Debt
No dispute about money being owed and/or the amount of money that is owed
Unliquidated Debt
There is a dispute about money being owed and/or the amount of money that you owe
Accord and Satisfaction
once you pay the money
Unilateral Mistake
When one of the parties makes a mistake about a basic assumption on which the contract is made, and the other party has a reason to know
Mutual Mistake
When both of the parties are mistaken about a basic assumption on which a contract is made
Duress
occurs when one party induces another party to enter into a contract based on some wrongful act or threat