Exam 3 Law Flashcards
What are 3 ways you can terminate an offer?
Revocation
Rejection
A counter offer
What is an example of destruction of the subject matter?
I am selling you a car. Prior to me buying the car, I totaled the car. By operation of law the contract is terminated because the item was destroyed.
What does MYLEGS stand for?
Marriage Year (One year rule) Land Sales Executors Promise Guarantor Sale of Goods in excess of $500
Contract Law
A form of law that deals with contracts
Past Consideration
An act done before a contract is made
Emancipation
The process of being set free from guardians
What are 3 circumstances that show lack of consideration?
Preexisting duties
Pass consideration
Illusory Promises
Counter offer
Rejecting the original offer given and coming up with a new offer
What are 2 defenses in enforcing a contract?
Form
Voluntary Consent
What is the parol evidence rule?
evidence that parties can introduce in order to identify certain terms of a contract
Promisor
Person who creates the promise
Mail Box rule
Acceptance is effective when mailed
What 2 things does the UCC cover?
Sales of goods
Leases
What is one necessary element for an effective offer?
Has to have serious intent
Promissory Estoppel
promise is enforceable by law
Rejection
Someone saying no to your offer
Illusory Promises
A promise that is not enforceable because the promisor can choose not to perform the obligation
Corollary
Promises to pay debts by statute of limitation
Offerer
Someone who offers the contract
What 2 effects does intoxication have on a contract?
Voidable
Valid
Preexisting Duties
Something that is already required under an existing contract
Covenants
An agreement
What are the 3 situations where you can void a contract?
Minors
Intoxication
Mental Incompetence
Agreement
When someone offers and accepts something
Contractual Capacity
Legal ability to enter into a contract
General Rule
Acceptance is timely before the offer is terminated
Termination by Operation of Law
Certain circumstances where law can just terminate a contract
What must consideration provide?
The basis for the bargain struck between the contracted parties
Ratification
Accept an obligation that was previously not enforceable
What 3 effects does mental incompetence have on a contract?
Void
Voidable
Valid
What is an essential element for a formation of a contract?
Consideration
Accord
To give or grant someone something
Promisee
Person who can accept the promise
What are the 2 types of contracts?
Valid Contract
Voidable Contract
Revocation
Taking back the offer before the person accepts the offer
What are the 4 requirements of a contract?
Agreement
Consideration
Contractual Compasity
Legal
Unilateral Contract
Promise for an act
Lapse of Time
Offer is terminated when the specific period of time has passed
Unequivocal Acceptance
When you accept the offer you cannot impose new conditions or change the original contract
What is consideration?
Value given in return for a promise or performance
What is the function of contract law?
To enforce agreements and promises between parties
Bilateral Contract
A promise for a promise
What are 4 settlements of claims?
Accord and Satisfaction
Releases
Covenants not to sue
Corollary
What does the UCC stand for?
Uniform Commercial Code
What cannot count as acceptance?
Silence
Quasi Contract
Made up contract by the courts to impose upon parties
What is the difference between executed and executory contracts?
Executed- when contract is fully performed
Executory- when a contract has NOT been fully performed yet
Statute of Frauds
Requires that certain types of contracts need to be signed in order to be enforceable
What are 7 examples where intent may be lacking?
Expression of opinion Statements of future intent Preliminary negotiations Preliminary Agreements Advertisements Live or Online Auctions Agreements to Agree
What are the 4 reasons that a contract can be voidable?
Minors
Mental Incapacity
Fraudulently Induced
Undue Influence
Disaffirmance
Ignoring a contract
What are 4 examples of Termination of a Contract by Law?
Lapse of time
Death or incompetence of the offerer or offeree
Destruction of the subject matter
Supervening Illegality of the Offer
Bargain of Exchange
Consideration must provide the basis for the bargain between two parties
What is another name for an agreement?
Meeting of the Minds
What are the 3 objective theories of contracts?
What a party said when entering into a contract
How the party acted
Circumstances surrounding the contract
Offeree
Someone who accepts the contract
What is an example where intent is lacking?
You are in your car and your car breaks down
- You yell I want to sell to this car for $10
- Someone on the street gives you $10
There is no contract because I was lacking intent- did not mean what I was going to say
