Introduction to Contract Law Flashcards
1
Q
Contract (definition)
A
A legally enforceable agreement
2
Q
Contracts Analysis Flow
A
- Formation
- Interpretation and terms
- Defenses
- Performance and Breach
- Remedies
3
Q
Mutual Assent needs these two elements:
A
Offer and Acceptance
4
Q
Objective Theory of Contracts
A
- Does not care about what is being thought internally
- Looking to what is externally manifested
- What would a reasonable person believe?
“A party’s intent is deemed to be what a reasonable person in the position of the other party would think that the first party’s objective manifestation of intent meant.”
5
Q
Subjective Theory
A
“meeting of the minds” (old theory)
6
Q
How do we assess ambiguity?
A
From the standpoint of a reasonable person
7
Q
Reasonable interpretation of reasonable person
A
What you said + What a reasonable person would interpret that to mean = Formation
8
Q
Joke Cases
A
- If offeree had reason to know it was a joke, the offer was not valid
- Secret beliefs are not relevant
- Most courts will not allow the contract to be enforced
