Unit 1 Chapter 15 Review Flashcards
What six actions or circumstances can terminate an offer?
Acceptance and conversion to a contract
Rejection by offeree
Revocation or withdrawal of the offer
Expiration of offer
Counteroffer that changes original offer
Death or insanity of either party
What are the four classifications of contracts?
Mode of expression – oral or written
Degree of explicitness – express or implied
Degree of commitment – unilateral or bilateral
State of fulfillment – executory or executed
What is the difference between an express contract and an implied contract?
An express contract is one in which all the terms and covenants of the agreement have been clearly stated and agreed to by all parties, whether verbally or in writing.
An implied contract is an unstated or unintentional agreement that may be considered to exist when the actions of any of the parties suggest the existence of an agreement.
List and briefly describe each of the additional classifications of contracts.
Unconscionable – unduly favors the party with the superior bargaining power and may not be enforceable
Adhesion – dictated by the party who has the greater bargaining advantage and are sometimes not enforceable
Aleatory – the effects of this contract are dependent on chance, such as an insurance policy wherein a specific event must occur before the promise of the contract is fulfilled
What are the five criteria of a valid contract?
Competent parties
Mutual agreement
Lawful objective
Consideration
In writing
What is required by the Statute of Frauds regarding contracts?
Certain contracts, such as real estate contracts, must be in writing to be enforceable.
What is a purchase and sale agreement?
A contract in which the buyers agree to purchase the property for a certain price and the seller agrees to transfer the title to the buyer using a deed or an assignment of lease.
