(New Unit) Chapter 11 Flashcards
What is the purpose of contract law?
Makes promises legally enforceable, not everyone has morals.
What type of law governs contract law?
Common law unless altered by statute.
What is the promise aspect of contracts?
Perform or not perform some present or future act. Promisor makes promise, promise receives promise.
What are the basic elements of valid contracts?
Agreement, consideration, capacity, and legal.
What is the agreement aspect of valid contracts?
Offer and acceptance.
What is consideration in valid contracts?
Legally sufficient, bargained-for exchange, can be voided.
What is legal in valid contracts?
Purpose of contract must be legal at time of execution
What is contractual capacity in valid contracts?
All parties bound must be competent, can be voided.
What is the definition of contracts?
Legally enforceable promise. Formed by two or more parties. Provides predictability and planning, and equalizes expectations.
What is jointly and severally liable?
Every person (offeree) is liable for expenses/costs.
What is the intent of parties (factor of valid contract)?
Often most important factor, sometimes regardless of form/rules.
What is fairness (in valid contracts)?
Fairness does not depend on it, often law is not fair.
What is objective theory of contract law (enhances fairness)?
Looks at actions, not mindset. Comments when entering contract, actions or appearance of parties, circumstances surrounding transaction.
What is the ‘no voluntary consent defense’ to enforceability of contracts?
Fraud, undue influence, mistake, duress (force).
What is the ‘mutual mistake defense’ to enforceability of contracts?
No meeting of minds.
