(Q1) Contracts & Mutual Agreement pg. 8,9,10,11

Question 1

Contract

Answer 1

Agreement between two or more people that is enforceable at law

Question 2

Requirements for a Valid Contract

Answer 2

1. Offer and Acceptance = Mutual agreement
   
   2. Competent Parties
   3. Consideration
   4. legality – must be legal subject matter and performed in a legal manner
   5. Formality in some instances – seal, witnesses, notary

Question 3

Valid Contract

Answer 3

Completely enforceable by either party.

Question 4

Void

Answer 4

Completely unenforceable

Question 5

Voidable

Answer 5

valid but may be avoided by either or both parties

Question 6

Expressed

Answer 6

all terms are stated either orally or written

Question 7

Quasi Contract

Answer 7

Under certain circumstances the law will imply a contract exists

Question 8

Formal Contract

Answer 8

Some states require a formality such as witnesses, a seal or notary

Question 9

Simple Contract

Answer 9

a contract not requiring a formality

Question 10

Executory Contract

Answer 10

all terms have not been completely performed

Question 11

Executed Contract

Answer 11

all terms have been completely performed

Question 12

Unilateral Contract

Answer 12

a promise given in exchange for an act to be performed

Question 13

Bilateral Contract

Answer 13

a promise given in exchange for another’s promise

Question 14

Minor

Answer 14

• age at common law an adult was 21., but state statutes could be different
• Most states – a minor is 17 and under for contractual purposes

Question 15

Are contracts with a minor valid?

Answer 15

Yes, voidable (the minor’s option) except for necessities

Question 16

Necessities

Answer 16

food, clothing, shelter, medical, insurance, items necessary for school or work

Question 17

Are contacts from incompetent people valid?

Answer 17

• Adjudicated Incompetent people= void
• Nonadjudicated Incompetent people= voidable like a minor until person is adjudicated

Question 18

Ratification

Answer 18

giving formal consent to a contract making it officially valid

Question 19

Affirmance

Answer 19

confirmation of something previously done Minor can only affirm or ratify when reaching adulthood and can only disaffirm as a minor (after affirming, you cant disaffirm)

Question 20

Disaffirmance

Answer 20

renouncing a contract previously accepted (only minors can do this)

Question 21

Quasi Contract

Answer 21

Under certain circumstances, the law will imply a contract exists

Question 22

Offer and Acceptance

Answer 22

offeror proposes terms to an offeree

Question 23

Requirements of a Valid Offer

Answer 23

definite, seriously intended, communicated to offeree

Question 24

Duration of the Offer

Answer 24

can be revoked by offeror any time before acceptance

Question 25

Acceptance

Answer 25

assent to an offer indicating an agreement to accept it’s term

Question 26

Option Contract

Answer 26

offeror accepts something of value to keep the offer open for a specified time

Question 27

Termination of the Offer

Answer 27

- by acceptance - revocation - rejection and/or counteroffer (wager a different amount) - lapse of time as stated in the offer - subsequent illegality

Question 28

Manner of Acceptance (of an offer)

Answer 28

depends on wording of offer or statute of frauds

Question 29

Mailbox Rule

Answer 29

contract/agreement/paperwork must be postmarked by a certain time

Question 30

Implied Contract

Answer 30

some or all terms are implied by actions or non-actions of the parties