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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
partially executed
executory one party has completed the work the other has not
26
voidable
one of the parties holds the right to avoid contractual obligations
27
unenforceable
valid contract that can no longer be enforced something occurs to make contract unenforceable law change
28
Elements of a contract
1. agreement - mutual assent - offer - acceptance 2. consideration 3. Definite terms and conditions 4. communication to the offer
29
to have agreement you must have
genuine and real assent to the contract | some contracts must be in writing
30
elements of an offer
- intent - definite terms and conditions - communicated to the offeree
31
consideration
something of value bargained in exchange for a legally binding promise
32
Enforcement of contratcs
usually common law but can vary from state to state can be supplemented by statutory law
33
ways to terminate an offer
1. Revocation 2. Rejection 3. Lapse of time 4. counteroffer 5. termination by law
34
revocation
offeror takes back offer prior to acceptance
35
rejection
offeree says no
36
lapse of time
stated time expires reasonable time passes option contract
37
counteroffer
rejection by new offer
38
termination by law
intervening legality-change in law subject matter of the offer gets destroyed insanity or death of offeror or offeree
39
acceptance requirements
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
legal detriment
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
legal benefit
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
gratuitous promise
unenforceable - promise with no legal substance
43
Consideration must have both
legal detriment | legal benefit
44
Adequacy of consideration
courts do not care if consideration actually benefits one party or not courts will not bail you out of a dumb deal
45
illusory promise
no real commitment/ no contract | not supported by court
46
promissory estoppel
detrimental reliance | no consideration in promise
47
detrimental reliance
promissory estoppel | no consideration in promise
48
Spacek v. Maritime 5th circuit case
illusory promise "when it creates no legal obligation whatsoever on part of purported promisor"
49
Spacek v. Maritime 5th circuit case
illusory promise "when it creates no legal obligation whatsoever on part of purported promisor"
50
Contractual capacity
Contracting party understand a contract is being made and they understand its general nature
51
Buddy L INC v. General Trailer co INC
"presumption exist in law that one possesses sufficient mental capacity to enter in to contracts" - contractual capacity
52
Restituition
returning proper property ownership or monetary loss Made in judgement of negligence
53
Ratification
confirmation of an action that can be expressed through words or the individuals conduct
54
Intoxicated people
Have to be WAYYYYY drunk wayyyy past what the law considers drunk
55
insane people
contracts can be void voidable or valid depending on adjudged insane or unadjudicated insane
56
Adjudicated insane
court order that a person lack contractual capacity all contrascts are VOID
57
Unadjudicated insane
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
Legality
contracts must be legal
59
Unconscionable contract
unequal bargaining power takes advantage of other person
60
Exculpatory agreement
releases one party from consequences of wrongful acts or negligence
61
Genuine and real assent to the contract
must freely and voluntarily enter into contract ``` Falls under Mistake Fraud Duress Undue Influence ```
62
Mistake
if only unilateral mistake (one party) then no relief - binding contract
63
Unilateral mistake
mistake only by one party and gives no relief to the contract terms
64
2 types of mistake
mutual mistake of value | mutual mistake of material fact
65
mutual mistake of value
No relief
66
mutual mistake of material fact
Relief either party in the contract can void the contract based on mutual mistake of material value
67
Fraud what right do you have
misrepresentations of fact and Innocent party can normally avoid the term because the contract was misrepresented the right to rescind the contract
68
elements of fraud
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
elements of fraud
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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