Exam II Flashcards
Reasons for Contracts
protect bus and personal/property rights provides stability in bus. relationships reduces costs establishes self regulation provides remedies lessens dependence on good faith
Three important parts of the definition of Contracts
promise
enforceable
has consequences
What does UCC stand for?
Uniform Commercial Code - governs transactions regarding goods
Which type of law governs contracts over services?
common law
Legislative (statutes) Contract Law governs the sale of ______.
goods
Describe the UCC
issued in 1952 to facilitate interstate commerce issues generally uniform all states except LA have article 2 (transactions)
What is the Law Merchant?
the UCC is based off of this
medieval Europe used to deal with traveling merchants in periodic markets
temporary nature of things required quick responses to disputes and remedies
Under implied warranties in the UCC, what is merchantability?
the seller of goods must be of fair quality and conform to labeling requirements
Under implied warranties in the UCC, what is fitness for a particular purpose?
goods must be suitable for the buyers purpose if the seller is aware of what that purpose is
What are the 2 implied warranties?
Merchantability
Fitness for a Particular Purpose
**must conform to this even if NOT expressly stated
Def: bilateral contracts
Mutual promises: 2 promises, 2 rights, 2 duties
Promise in exchange for a promise
*most bus. contracts are bilateral
How is this an example of a bilateral contract?
I will sell you my book for $200.
Seller: promise to deliver
Buyer: right to book
Seller: right to receive $
Buyer: promise to pay $
Def: unilateral contracts
Agreements with 1 promise and only 1 party is committed to perform
Aka
Promise made in exchange for performance
How is this an example of a unilateral contract?
I will give you a $1000 bonus for reaching 15% sales increase.
One promise - to pay
Right to receive $
- no one forces you to reach the goal
Def: express contracts
interactions where parties discuss the promised terms of their agreement
Def: implied-in-fact contracts
contracts that come with the conduct of the parties
ex. asking a lawyer for advice; you have to pay them @ rate but this may not have been discussed
must contain same elements of express contracts
law will automatically add terms unless parties specifically agree to leave them out
Def: implied-in-law contracts
quasi contracts
judicial remedy to prevent unjust enrichment of a party at the expense of the other
only happens when there’s no actual contract to cover the dispute
**mostly when parties tried to create a contract but it was void or unenforceable
Def: enforcement
courts uphold the validity of the promises
Def: unenforceable
justifiable reason for noncompliance with a promise
*must prove denial of legal enforcement
Def: valid
when an agreement is enforceable because all of the essential requirements are present
Def: void
appears to be an agreement, but lacks some essential requirement for it to be enforceable
Def: voidable
agreement where at least 1 party has the right to withdraw from a promise without incurring legal liability
*they’re enforceable until the party declares them as void
