Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Mgmt 211 > test 2 ch. 4-5 > Flashcards

test 2 ch. 4-5 Flashcards

1
Q

define contract

A

system of rules for enforcing promises and breaking promises - must be legally enforceable M.C.C.L.G.W

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is contract law

contract law makes promises

A

common law by the states/ judge made law

legally enforceable
consequences of breaking promises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

characteristics of common law

A

fundamental part of our economic and the legal system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

voluntary mutually beneficial exchanges take place when…

A

voluntary mutually beneficial exchanges will take place in the absence of contract law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

mutually beneficial exchange

A

giving and getting something of value from both parties
fundamental purpose of the law is to facilitate beneficial exchange
Exchanging milk for coconuts to increase take in

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

an expressed contract is stated

A

orally

written contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

implied contract (implied by factor contracts)

A

inferred from the conduct of the parties

ex. sitting in the barber chair

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

quasi contracts

A

not a true contract - something is missing
rare
ex. yard work without permit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

implied in law contract

A 
quasi contract
law/judge implied the contract 
1. element missing
2. judge fills in the missing elements
prevents unjust enrichment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are you doing if you use quasi contract

A

throwing yourself on the mercy of the court

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

unconditional contract

A

absolute contract - MUST PERFORM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

conditional contracts

A

no duty to perform if condition not met

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

types of conditional contracts

A

conditional subsequent
conditional precedent
conditional concurrent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

bilateral contracts

enforced?

A

promise for a promise
“saying yes i promise is a promise back”
enforced when 2nd promise is made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

unilateral

how many promisors

what percentage of work needs to be done

enforced?

A 
promise for an act
one promisor 
offeree accepts by performance
"just doing it without saying yes"
has to be fully performed

fully performed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

executory contract

A

not fully performed by either party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

executed contracted

A

contract has been fully performed by both parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

partially executed

A

one party has has completed the work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

valid contracts

A

all elements are present

enforceable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

void contracts

A

not a contract

no legal obligation of any parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

voidable contracts

A

one of the parties has the right to avoid contractual obligations without incurring legal liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

unenforceable contracts

A

valid contract that can no longer be performed because something happened (ie. law change, destroyed)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

how are contracts enfored

A

usually through common law but varies state to state BUT it is getting more uniform - can be supplemented by statutory law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

elements of a contract (6)

A

All elements must be present
M.C.C.L.G.W.
1. mutual agreement (offer and acceptance)
2. consideration
3. capacity - understand the nature of the contract
4. legality
5. genuine and real assent to the contract
6. some contracts must be in writing - statue to fraud principle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Texas elements of a contract (8)

A
  1. offer
  2. acceptance
  3. meeting of the minds
  4. each party must consent to the terms
  5. if it must be in writing it needs to be executed and delivered
  6. consideration
  7. legality
  8. capacity - understand the nature of the contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Element Agreement

A

mutual assent

  1. intent
  2. definite terms and conditions
  3. communication of the offer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

how do you terminate an offer (5)

A 
R.R.L.C.T.
revocation
rejection
lapse of time
counteroffer
termination by law
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Acceptance of a contract

A

U.U.L.C.U.
must be unconditional - exact, mirror image rule
must be unequivocal
must be legally communicated
unilateral contracts - performance is acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Consideration

A

something of value bargained for in exchange for a promise, legal detriment and legal benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

legal detriment

A

give up some legal right - consideration

an act or promise to act or refraining from an act which you are not legally obligated to do

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

legal belief

A

legal right acquired by promisors due to promisees legal detriment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

adequacy of consideration

A

courts do not care about this
courts do not bail you out of a dumb deal
“stupid is as stupid does”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

illusory promise

A

not a contract so theres no real commitment

making a promise with no intention in doing it

34
Q

promissory estoppel

A

aka detrimental reliance
no consideration in promise
a reasonable person relies on a promise and can suffer substantial loss if the promise is not kept
pledging to give church 100000000 dollars

35
Q

contractual capacity

A

understanding the general nature of the contract

36
Q

minors under 18

exceptions

A

contract is voidable on their end but on the opposing side the promise has to be kept

  1. necessities
  2. enlistment in military
  3. marriage contracts
  4. statute - insurance, banking, public transportation, student loans
37
Q

disaffirmance - disafrim

A

minor voids the contracts

can be done with words or actions
may owe duty of restitution

38
Q

ratification

A

minor accepts contract

can be done by words or actions

39
Q

misrepresentation of age

A

common law - minor can still disafirm

trend - hold minor to contract where they misrepresent their age

40
Q

intoxicated people

what is he standard

A

if intoxicated at the time of entering into a contract the contract is voidable
when you are sober you can ratify or disafirm
standard: so intoxicated that you did not understand the nature of the contract

RARE

41
Q

adjudicated insane

A

court ruled person insane

AFTER they have been declared adjudicated insane any contract becomes void

42
Q

unadjudicated insane

A

insane person returns to lucidity (normal sanity) - liable for restitution
has right to disaffirm contract
Voidable

43
Q

legality

A

contracts must be legal
unconscionable contract
exculpatory agreement

44
Q

unconscionable contract

A

grossly unfair contract
one person has unequal bargaining power and takes advantage of the other person
violates public policy

45
Q

exculpatory agreement

A

releases one party from consequences of wrongful acts of negligence
violates public policy

46
Q

genuine and real assent to a contract

A

must freely and voluntarily enter into a contract

47
Q

unilateral mistake

A

no relief

this contract is still bounded

48
Q

mutual mistake

A

mutual mistake of value - no relief

mutual mistake of material fact - either party can void does have relief

49
Q

fraud elements

A

misrepresentation
intent to deceive
justifiable reliance on misinterpretation
innocent party injured

50
Q

how is fraud used in contracts

A

con man - usually does not apply

duress someone forces another person into a contract MUST BE MORE THAN ECONOMIC THOUGH

51
Q

why do statues of fraud exisit

A

to prevent fraud by claiming that a contract existed when in fact a contracts did not
result - some contracts must be in writing

52
Q

statues of fraud (5)

A
  1. contracts that cannot be perfromed within a year
  2. contracts for sale of goods over 500
  3. contracts for transfer of an interest in real property
  4. promise to perform obligations of others
  5. promise made in contemplation of marriage
53
Q

parole evidence rule

A

the written contract speaks for itself - cannot use oral evidence or extraneous evidence to try and contradict the contract

54
Q

parole evidence rule exceptions (4)

A

subsequent modification of a written contract
oral evidence to prove contract was void or voidable
ambiguous or incomplete contracts
prove a condition

55
Q

discharge of contracts (6) page 5 study guide look at this

A
  1. perfromance
  2. breach of contract/incomplete performance
  3. discharge by conditional contracts
  4. discharge by agreements
  5. discharge by impossibility
  6. repudiation
56
Q

remedies for breach of contract

A

explanation of remedies
monetary damages - (compensatory, consequential, liquidated)
equitable damages

57
Q

why are written contracts better

A

easier to enforce
helps people remember terms more accurately
old days persons word was bond
better than oral

58
Q

conditional subsequent

A

after

59
Q

conditional precedent

A

before

60
Q

conditional concurrent

A

during

61
Q

Agreement R’s

A

rejection - offeree says no

revocation - offeror takes back offer or says no

62
Q

non offers

A

preliminary negotiations
advertisements
auctions - meets reserve - probably valid - ebay

63
Q

communication of the offer is when

reward?

A

the offeree receives it

must know of reward to collect the reward (lost dog)

64
Q

irrevocable offer

A

option contract- exclusive rights

65
Q

termination by law 3 (valid - unenforceable)

A
  1. intervening legality - change in aw terminates offer
  2. subject matter of offer is destroyed
  3. insanity death of offeror or offeree
66
Q

to accept a contract the contracts acceptance requirements are

A

must be unconditional (must be exact - mirror image rule)
must be unequivocal (word or conduct must be definite)
must be legally communicated (mailbox rule)

67
Q

unilateral acceptance

A

performance is acceptance

trend - substantial amount of work complete

68
Q

consideration R’s

A

reliance / estoppel

69
Q

detrimental reliance

A

aka promissory estoppel
no consideration in promise
a reasonable person relies on a promise and can suffer substantial loss if the promise is not kept
pledging to give church 100000000 dollars

70
Q

contractual capacity R’s

valid void or voidable

A

ratification - valid
voidable - disaffirm
restitution - payment of something

71
Q

unconscionable contract

A

grossly unfair

72
Q

exculpatory negligence

A

wrongful acts of negligence

73
Q

genuine and real assent

A

must freely and voluntarily enter into the contract

74
Q

mistake relief
unilateral
bilateral

A

must be bilateral to rescind MUST BE OF MATERIAL FACT - buying 10 acres when its really 9
unilateral - no relief

75
Q

fraud

A

innocent party gets out

76
Q

duress

A

signing contract against his or her will

and must be more than economic

77
Q

duress lacks

A

genuine and real assent

78
Q

undue influence

A

tv evangelist - nurse taking care of someone

79
Q

undue influence lacks

A

genuine and real assent

80
Q

R’s

A

revocation - offeror takes offer back
rejection - offeree says no
ratification - agree to terms of contracts
rescission - both parties agree to terminate the contract without performance
repudiation - prior to performance one party says I am not going to do it
reformation - correcting small unintentionally typos - math

81
Q

other name for consequential damages

A

special damages

Mgmt 211 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions