Formation 1 Flashcards
Define
contract
Legally enforceable agreement that contains the rights and responsibilities of the contracting parties.
What are the types of law that govern contracts?
- Common Law: employment contracts, personal service contracts
- UCC Article II: anything moveable; tangible personal property
- Mixed: When the contract deals with both services and good, predominant purpose of the contract reigns
Elements needed to form a valid contract
- Mutual assent (offer + acceptance);
- Consideration (bargained for legal detriment); and
- No defenses to formation
Define
bilateral contract
Contract created by mutual promise of performance. The most common type of contract.
Ex. You agree to pay a certain amount of money in exchange for title of a home.
Define
unilateral contract
Requires full performance as method of acceptance; binding once performing party begins performance
Define
offer
- An outward, objective manifestation of willingness to enter into a bargain;
- That creates the power of acceptance in the offeree (i.e. nothing left to do except say “yes”)
Under common law, what terms must be included in the offer?
- Parties
- Subject matter
- Price
- Quantity
What terms are required for real estate K’s?
identity of the land and price terms
What is the only essential term the UCC requires in a contract
Quantity
⭐️ As long as parties intended to make K, UCC will supply gap fillers for missing terms
What terms are required for a requirement or output contract?
Quantity expressed in terms such as “all” or “only” or “solely”
Are advertisements offers?
No, unless they contain specific and detailed information as to the price, quantity, and who can accept
(Ex. “50 blazers for sale for $50 for law students who passed the bar)
Are rewards offers?
Yes, because they generally offer money in exchange for performance of a specified task
