LO 2 Flashcards
What is a contract?
A legally binding agreement between multiple parties.
What is invitation to treat?
To invite offers.
What is postal acceptance rule?
Acceptance is complete when offer is in the mail.
What is recipient rule?
Acceptance is complete when recipient has communication.
Parties privy to contract
The parties in the contract are the only ones who can enforce it.
Offer made and accepted includes?
Scope, price, timeline, request for proposal, request for offer.
Capacity to contract
Understand the contract terms
Consideration
Promises and obligations agreed upon by all parties.
How can you void a contract?
-Material mistake made by all parties that is significant and existed at time of contract signing.
-Misrepresentation which is an untrue statement made by one party to influence the other parties decisions.
-Duress as a party was subjected to improper pressure, threats or coercion.
-Unconscionability which is an unfair one-sided contract.
-Frustration is unforeseen situation that prevents one party from fulfilling obligations, a force majeure clause.
Quasi contract
When compensation falls short for work done.
Estoppel clause
One of both parties wave rights to certain conditions.
Quantum merit
Parties who have provided services are entitled to compensation.
What is an agent?
A person who acts on behalf of someone else.
What is authority?
-Expressed authority is actual authority.
-Apparent authority is established on principals.
Indemnity
A written agreement between 2 parties, one bearing financial loss, and the agreement is signed by insurance company.
