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Mgmt 211 > Test2 > Flashcards

Test2 Flashcards

1
Q

What is the nature of contract law

A

system of rules for enforcing promises and breaking promises

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2
Q

Contract law gives gives the extent to which promises (2)

A

Are legally enforceable

Consequences for breaking the promises

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3
Q

What is common law

A

Fundamental part of our economic and legal environment of business

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4
Q

Societal level contracts

A

provide a legal environment conductive to voluntary exchanges

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5
Q

individual level of common law

A

the facilitation of mutually beneficially exchange

allocation of risk

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6
Q

2 functions of contracts

A

performance

risk allocation

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7
Q

Contracts serve what economic functions to the individuals perspective

A
  1. facilitation of mutually beneficial exchange and the allocation of risk to the contracting parties
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8
Q

How does contract law serve

A

Contract law imposes external rules that create rights and duties in the parties to exchange and provides remedies in the event the duties are breached

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9
Q

Express contract have terms that are fully and explicitly stated in words BY:

A

Orally

Written contract

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10
Q

Implied contract

A

inferred from the conduct of the parties
ex. sitting in the barbershop chair

Immigrant in the cafeteria not paying

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11
Q

Harrison v. Williams dental group

A

Texas case law says that na express contract “arises when its terms are stated by the parties”

Texas case law says that implied contract “can arise from the acts and conduct of the parties”

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12
Q

Quasi Contract

what is it

how do you try to get this

A

“sort of”
almost contract
very rare - to get this you need to throw your self onto the mercy of the court

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13
Q

implied in law contratcs

A

element missing and the judge fills in the missing elements

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14
Q

conditional contracts

the 3 types

A

no duty to perform if the condition is not met

a. subsequent
b. precedent
c. concurrent

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15
Q

unconditional contracts

A

absolute; must perform contract no matter what

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16
Q

Conditional subsequent

A

Contract starts until the stated condition occures; when it occurs contract expires

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17
Q

conditional precedent

A

if the stated condition never occurs you never have to do it

this is a trigger

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18
Q

conditional concurrent

A

i dont have to preform if you dont preform

ex.house closing

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19
Q

Bilateral

breachable?

A

mutual exchange of promises; Promise for promise

yes

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20
Q

Unilateral contract

breachable?

A

is enforced when total performance is completed

Promise for an act

no

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21
Q

Executed

A

totally finished contract has fully been performed by all parties

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22
Q

executory

A

is NOT finsihed

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23
Q

valid

A

all elements are present making it enforceable

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24
Q

void

A

not a contract

no legal obligation on any of the parties

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25
Q

partially executed

A

executory

one party has completed the work the other has not

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26
Q

voidable

A

one of the parties holds the right to avoid contractual obligations

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27
Q

unenforceable

A

valid contract that can no longer be enforced
something occurs to make contract unenforceable

law change

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28
Q

Elements of a contract

A
  1. agreement - mutual assent
    - offer
    - acceptance
  2. consideration
  3. Definite terms and conditions
  4. communication to the offer
29
Q

to have agreement you must have

A

genuine and real assent to the contract

some contracts must be in writing

30
Q

elements of an offer

A
  • intent
  • definite terms and conditions
  • communicated to the offeree
31
Q

consideration

A

something of value bargained in exchange for a legally binding promise

32
Q

Enforcement of contratcs

A

usually common law but can vary from state to state

can be supplemented by statutory law

33
Q

ways to terminate an offer

A
  1. Revocation
  2. Rejection
  3. Lapse of time
  4. counteroffer
  5. termination by law
34
Q

revocation

A

offeror takes back offer prior to acceptance

35
Q

rejection

A

offeree says no

36
Q

lapse of time

A

stated time expires
reasonable time passes
option contract

37
Q

counteroffer

A

rejection by new offer

38
Q

termination by law

A

intervening legality-change in law
subject matter of the offer gets destroyed
insanity or death of offeror or offeree

39
Q

acceptance

requirements

A

accepted offer must be exact terms

A. must be unconditional 
-must be exact
-mirror image rule
B. must be unequivocal (no doubt)
C. must be legally communicated 
- mailbox rule
D. unilateral contracts performance is acceptance
40
Q

legal detriment

A

required to do something from contract that you were not previously obligated to do by law OR agreeing to give up a legal right that they have

41
Q

legal benefit

A

other party receives the benefit that they were not previously entitled to but because of the promises of legal detriment they are now entitled

42
Q

gratuitous promise

A

unenforceable - promise with no legal substance

43
Q

Consideration must have both

A

legal detriment

legal benefit

44
Q

Adequacy of consideration

A

courts do not care if consideration actually benefits one party or not
courts will not bail you out of a dumb deal

45
Q

illusory promise

A

no real commitment/ no contract

not supported by court

46
Q

promissory estoppel

A

detrimental reliance

no consideration in promise

47
Q

detrimental reliance

A

promissory estoppel

no consideration in promise

48
Q

Spacek v. Maritime

5th circuit case

A

illusory promise “when it creates no legal obligation whatsoever on part of purported promisor”

49
Q

Spacek v. Maritime

5th circuit case

A

illusory promise “when it creates no legal obligation whatsoever on part of purported promisor”

50
Q

Contractual capacity

A

Contracting party understand a contract is being made and they understand its general nature

51
Q

Buddy L INC v. General Trailer co INC

A

“presumption exist in law that one possesses sufficient mental capacity to enter in to contracts” - contractual capacity

52
Q

Restituition

A

returning proper property ownership or monetary loss Made in judgement of negligence

53
Q

Ratification

A

confirmation of an action that can be expressed through words or the individuals conduct

54
Q

Intoxicated people

A

Have to be WAYYYYY drunk wayyyy past what the law considers drunk

55
Q

insane people

A

contracts can be void voidable or valid depending on adjudged insane or unadjudicated insane

56
Q

Adjudicated insane

A

court order that a person lack contractual capacity all contrascts are VOID

57
Q

Unadjudicated insane

A

can enter a contract if they understand the subject matter, nature, and consequences of a contract

when proved insane
- have the right to disaffirm contract or ratify
VOIDABLE

58
Q

Legality

A

contracts must be legal

59
Q

Unconscionable contract

A

unequal bargaining power takes advantage of other person

60
Q

Exculpatory agreement

A

releases one party from consequences of wrongful acts or negligence

61
Q

Genuine and real assent to the contract

A

must freely and voluntarily enter into contract

Falls under 
Mistake 
Fraud 
Duress
Undue Influence
62
Q

Mistake

A

if only unilateral mistake (one party) then no relief - binding contract

63
Q

Unilateral mistake

A

mistake only by one party and gives no relief to the contract terms

64
Q

2 types of mistake

A

mutual mistake of value

mutual mistake of material fact

65
Q

mutual mistake of value

A

No relief

66
Q

mutual mistake of material fact

A

Relief

either party in the contract can void the contract based on mutual mistake of material value

67
Q

Fraud

what right do you have

A

misrepresentations of fact and Innocent party can normally avoid the term because the contract was misrepresented

the right to rescind the contract

68
Q

elements of fraud

A

M.D.R.I.

  1. Misrepresentation has occurred
  2. attempt to deceive
  3. innocent party justifiably relied on misrepresentation
  4. the innocent party has been injured
69
Q

elements of fraud

A

M.D.R.I.

  1. Misrepresentation has occurred
  2. attempt to deceive
  3. innocent party justifiably relied on misrepresentation
  4. the innocent party has been injured

Mgmt 211 (4 decks)

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