REG: Business Law - Contracts1 Flashcards
Name 3 forms of contracts
1) written; 2) oral; 3) implied
Name the 2 types of implied contracts
1) Applied in fact (actions of parties);
2) Applied in law (quasi contract - restaurant example)
Contracts fall under 2 types of law. What are they?
1) Common Law (judge made)
2) Statute (sale of tangible goods - U.C.C.)
Anything other than the sale of tangible goods is Common Law
Name the 6 elements of a contract
PLACCO
1) Proper form (ex written if it’s supposed to be)
2) Lawful object
3) Acceptance
4) Consideration
5) Competent parties
6) Offer
List the Elements of Offers:
1) Seriously intended
2) Communicated to offeree
3) Definite in terms
List the Elements of Acceptance:
1) Unconditional - offeree cannot add conditions (revokes original offer - creates counteroffer)
2) Must be communicated by words or actions (silence is not acceptance)
3) Acceptance can only be by the party to which the offer was made.
WHEN is acceptance effective?
good test question
Mailbox rule - postmark date
Unless offer states that acceptance is only effective if RECEIVED by a certain date.
What is consideration?
A promise for a promise.
You actually give up a legal right and do something (or give something) you don’t have to.
Both sides have to do something.
Consideration must be legally sufficient, but does not have to be fair.
Counteroffer means 2 things:
1) Original offer is rejected by offeree
2) revoked by offerer
When do offers end?
At the end of stated time OR
after a reasonable amount of time OR
by operation of law 1) death or insanity either party 2) Sale or destruction of subject matter
What are the 4 types of contracts?
1) Unilateral - promise (to anyone) for an act
2) Bilateral - promise for promise
3) Voidable - legal, but one party has the right to rescind or cancel
4) Void - unenforceable by either party
