part 3 unit 25- managing contracts Flashcards
what is a contract
agreement between two or more parties that is enforceable by law
aspect that determines the validity & enforceability of the agreement.
intent to contract
void contract
lacks one or more essential elements from the beginning
due to certain circumstances or actions of one party, the other party has the option to either affirm or reject the contract.
voidable contract
Every valid and enforceable contract must include these 5 elements
offer and acceptance
consideration
capacity
consent
legality
the presentation to an individual of something that they may choose to either accept or reject
offer
3 p’s
parties, property, price
the action of consenting to receive or undertake something offered.
acceptance
consideration
something of value exchanged between the parties involved in a contract
A small of insignificant amount of money or value given in exchange for something else
nominal consideration
promise or an act that was made or performed prior to the contract
past consideration
capacity
people must have the ability to understand its nature and all of its terms
need to exercise due diligence when working with individuals who appear to lack the legal capacity…
impairment or incapacity, age, non-english speaker, corporations
True consent to a contract may not have occurred for several reasons.
Misrepresentation, duress, mistake, undue influence
representation that is not factual which induces a party to enter into a contract
misrepresentation
negligent misrepresentation
party makes a false rep they claim is accurate
not easily discoverable through a reasonable inspection and makes a property dangerous, potentially dangerous, or expensive to repair.
material latent defect
mistake
action or judgement that is misguided or wrong
common mistake
involves both parties misunderstanding a fact in the same way
mutual mistake
wherein each party has made a mistake, but each of their mistakes relates to something different in the purchase contract
unilateral mistake
when one party makes a mistake which the other party knows to be a mistake but does not correct.
duress
when one party does not enter into a contract of their own free will.
metal agreement
when one party accepts the offer of another.
five common methods to end or discharge a contract
performance, metal agreement, frustration , operation of law, breach
When a breach of contract has been determined, a party can claim one of the following options:
monetary damages, quantum merit ,specific performance, Injunction
to provide some financial compensation to the party suffering an actual loss due to the breach.
monetary damages
a claim for monetary damages can fall under the following 3 categories
reliance, exception, restitution
quantum meruit aka
as much as they deserve
way for the court to assess a claim for damages that cannot be determined through receipts
not common form of relief, usually only granted by the court when subject property or lands are unique
specific performance
an order to stop or prevent someone from doing something
injunction
