Quiz 1 Vocab - Test 1 Flashcards
agreement
A meeting of the minds.
contract
An oral or written agreement between two or more persons; that is an exchange relationship; involving at least one promise; that is enforceable.
promise
an undertaking to act or refrain from acting in a specified way at some future time.
manifestation of mutual assent
Appearance that an agreement has been reached. Behavior; discerned from actions of the party rather than words.
implied contract
One that is not manifested by words but gathered by implications or actions. Contract formed without express statement of terms, by words or actions.
express contract
Contracts with significant, clear, definite, unambiguous terms stated orally or in writing.
bilateral contract
A contract in which both parties make promises. A promise for a promise.
unilateral contract
Contract that is formed when one party acts in response to another party’s promise.
executory
Contracts in which all obligations have not been fulfilled. There remains something to be done.
executed
Contract in which all obligations have been met. Nothing further remains to be done.
void
An agreement with no legal affect. As if it never existed. Not enforceable.
voidable
One party has the power to invalidate the contract if they choose.
unenforceable contract
A contract that is valid but for some reason – e.g. Statute of Limitations – cannot be enforced.
letter of credit
An irrevocable promise by a buyer’s bank to pay the seller when conditions are met.
deductive reasoning
Moves from a general premise to a more specific conclusion. E.G. is a closing argument
