Exam 3 Contents Flashcards
What are contracts governed by?
Common law, unless there is a statutory law governing the contract
Contract (k)
a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty
Objective theory of contracts
A theory under which the intent to form a contract will be judged by:
-outward, objective facts (what the party said when entering into the contract –how the party acted or appeared
-and the circumstances surrounding the transaction) as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions.
What are the 4 requirements for a contract?
Agreement, consideration, capacity, and legality
Defenses to a K
– Voluntary consent- consent of both parties must be voluntary
* Examples include fraud, undue influence, mistake, or duress
– Form- the contract must be in the appropriate form required by
law
* Some K must be in writing
Bilateral Contract
A type of contract that arises when a promise is given in exchange for a return promise.
Formal contract
A contract that by law requires a specific form, such as being executed under seal, to be valid.
Unilateral contract
A contract that results when an offer can be accepted only by the offeree’s performance.
Informal contract
A contract that does not require a specified form or formality in order to be valid.
Express contract
A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.
Implied Contract
A contract formed in whole or in part from the conduct of the parties.
the conduct of the parties dictates rather expressed statements define the K
What are the requirements for an implied K?
-Plaintiff furnished some services or property
-Plaintiff expected to be paid for the services or property; Defendant knew or should have known payment was expected
-The defendant had a chance to reject the services or property and did not.
Executed contracts
Contracts in which performance has been completed.
Executory contracts
those contracts in which the terms have not been completely executed or fulfilled
Enforceable contract
a valid contract that can be enforced because there are no legal defenses against it
Unenforceable contract
A valid contract rendered unenforceable by some statute or law.
Voidable contract
A contract that may be legally avoided at the option of one or both of the parties.
Offer
A promise or commitment to perform or refrain from performing some specified act in the future.
Requirements for an offer
-The offeror must have a serious intention to become bound by the offer
-The terms of the offer must be reasonably certain
-The offer must be communicated to the offeree.
Agreement
The parties must agree on the terms and communicate to each other their mutual agreement to the same bargain; traditionally an offer and acceptance
Intention
What would a reasonable person in the offeree’s position conclude the offeror’s words and actions mean?
Situations in which intent may be lacking
- Expressions of opinion- not an offer
- Statements of future intent- “I plan on selling X”
- Preliminary negotiations- a request or invitation to negotiate is not an offer
- Invitations to bid- invitations to submit bids is not an offer; bids submitted are offers
- Advertisements and price lists- are considered invitations to negotiate
- Live and online auctions- again invitations to submit offers
Terms of a K must express or imply what 2 things?
The identity of the parties and the identity of the object or subject matter of the K
Revocation
The revoking or withdrawing of an offer