exam 3(2) Flashcards
What is a contract?
In simple terms, it is an enforceable agreement between two people
What does it mean to have an enforceable agreement?
if you do NOT do what you originally agreed to do then you will suffer the consequences
An express contract is one in which parties have an…
verbal or written agreement. Both types of contracts are generally recognized and are equally legal & binding.
Written contracts are…
the best because it is a matter of proof. It is preferable to reduce important and complex contracts to writing. In certain instances, the courts will enforce only written contracts.
Three reasons to have a written contract
Before you enter the agreement you can know what you are getting yourself into
- During the performance of the agreement, you may make note of what you are supposed to do and what the other party is supposed to do
- If the agreement is not fulfilled and you have to take it to court, you can have a sure fire way of winning your case by presenting the document
verbal contracts are..
most of the time just two people talking. They will each tell their sides but it is ultimately up to the judge on who they do and do not believe. A court will not consider verbal negotiations and agreements made before or at the same time a written contract is signed if the parties intended the document to be their complete & final agreement. However, due to technological advancements involving recordings, verbal contracts are now just as recognizable.
The more time spent on building a contract…
the better the contract maybe for either, or both, parties
The statute of frauds is an old principle that provides…
that certain types of contracts are not valid and cannot be enforced unless they are in writing & signed by the party against whom enforcement is sought. These types of contracts are designated in statute.
Examples of statute of fraud contracts are as follows:
- real property
- the financial debt of another
- between business
(IN SHORT: some contracts MUST BE in writing)
Florida law, of course, recognizes the parole evidence rule:
- “Evidence of a prior or contemporaneous oral agreement is inadmissible to vary or contradict the unambiguous language of a valid contract. This rule applies when the parties intend that a written contract incorporate their final and complete agreement”
- “This agreement contains the entire understanding of the parties and supersedes all previous verbal and written agreements. There are no other agreements, representations, or warranties not set forth herein. This agreement may only be amended by subsequent written agreement signed by both parties”
A voidable contract is one in which one party, but not the other, has the right to escape from its legal obligations under the contract.
It is considered to be a voidable contract at the option of that party. An example, a minor, not having the capacity to enter into a contract, can void the contract. Another example is someone who is, or is considered, not sound in mind.
Elements of a contract:
- offer (/communication)
- consideration
- acceptance
The element of offer/communication
does not mean they are synonymous or interchangeable in meaning. An offer, which is a promise to one party to do (or not to do) something if the other party agrees to do (or not to do) something, must be communicated for it to be valid.
Communication is…
NOT an element under contracts.
“Meetings of the minds” is
an understanding or mutual agreement between two or more parties and their understanding of that agreement
Specific performance is
essentially a remedy for breach of contract that says “make the person do what they said they would do
essentially a remedy for breach of contract that says “make the person do what they said they would do
holds as much weight as an original offer. It is simply a response to the accepted offer and can change the terms of agreement.
Elements of Acceptance
- Meeting of the minds (mutual assent)
- Definite and Complete
- Duration
- Complete and Conforming
Duration
Cant take back an offer if it’s already been accepted
“no take backs lol”
Can take back offer before a valid acceptance
Consideration
The cause, motive, price, or impelling influence which induces a contracting party to enter into a contract. The reason or material cause of a contract Some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility, given, suffered, or undertaken by the other
I tell you that I am driving to Key West this weekend. You say that you are driving there too and that we should meet at the bar & have a drink. I agree that sounds like a good thing to do and agree to meet you there.
- We have an agreement
- Do we have an enforceable agreement?
- No, why not?
- Because there is no consideration since neither of us bargained for anything.
A bi-Lateral contract is…
a promise for a promise
