Contract – Business Law – Flashcards
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Elements of a Contract
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To follow
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Agreement
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To have an enforceable contract, there must be an agreement between the parties. This requires an offer by the offeror and an acceptance of the offer by the offeree. There must be mutual assent by the parties
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Consideration
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The Promise must be supported by bargaained- for consideration that is legally sufficient. Gift promises and moral obligations are not considered supported by valid consideration
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Contractual capacity
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The parties to a contract must have contractual capacity. Certain parties, such as persons adjudged insane, do not have contractual capacity.
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Lawful Object
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The object of the contract must be lawful. Contracts to accomplish illegal objects or contracts that are against public policy are void.
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Bilateral Contract
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A contract entered into by way of exchange of promises of the parties; "a promise for a promise."
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Unilateral Contract
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A contract in which the offeror's offer can be accepted only by the performance of an act by the offeree; a "promise for an act"
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Express Contracts
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Stated in oral or written words. Examples of such contracts include an oral agreement to purchase a neighbor's bicycle and a written agreement to buy an automobile from a dealership.
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Quasi- Contract or implied in-law contract
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An equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or servises to a defendant even though no actual contract existed. The doctine is intended to prevent unjust enrichment and unjust detriment
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Formal and Informal Contracts
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Follows
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Formal Contract
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A contract that requires a special form or method of creation
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Informal Contract
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A contract that is not formal. Valid informal contracts are fully enforceable and may be sued upon if breached.
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valid contract
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a contract that meets all the essential elements to establish a contract; a contract that is enforceable by at least one of the parties
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Void Contract
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A contract that has no legal effect; a nullity
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Voidable Contract
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A contract in which one or both parties haev the option to avoid their contractual obligations. If a contract is avoided, both parties are released from their contractual obligations. If a contract is avoided, both parties are released from their contractual obligations.
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Unforceable Contract
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A contract where the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract.
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Executed Contract
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A contract that has been fully performed on both sides; a completed contract.
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Executory Contract
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A contract that has not been fully performed by either or both sides
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Bilateral Contract
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Promise for Promise
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Unilateral Contract
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A promise for an act
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Express Contract
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Contract expressed in oral or written words
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implied-in-fact
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Contract inferred from the conduct of the parties
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Quasi
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A contract implied by law to prevent unjust enrichment
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Formal Contract
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A contract that requires a special form or method of creation
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Informal
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A contract that requires a special form or method of creation
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Valid
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Contract that meets all the essential elements of establishing a contract
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void
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contract exists
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Equity
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A doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law.
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Agreement
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Manifestation of two or more persons of the substancvec of a contract
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Objective Intent
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The intent to enter into a contract, anything made in jokes or anger are not considered a valid contract
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Definiteness of Terms
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The terms of an offer must be clear enough for the offeree to be able to decide whether to accept or reject the terms of the offer.
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Implied Term
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A term in a contract that can reasonably be supplied by the courts
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Communcation
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An offer cannot be accepted if it is not communicated to the offeree by the offeror or a representative or an agent of the offeror.
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Advertisements
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An invitation to make an offer, or an actual offer.
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Rewards
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An award given for performance of some service or attainment to collect a reward the offerree must (1) have knowledge of the reward offer prior to completing the requested act and (2) perform the requested act.
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Auctions
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An auction in which the seller retains the right to refuse the highest bid and withdraw the goods from the sale.
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Auction without reserve
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An auction in which the seller expressly gives up his or her right to withdraw the goods from sale and must accept the highest bid.
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Revocation
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Withdrawal of an offer by the offeror which terminates the offer.
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Rejection
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Express words or conduct by the by the offeree that rejects an offer. Rejection terminates the offer.
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Counteroffer
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A response by an offeree that contains terms and contains terms and condidtions different from or in addition to those of the offer. A counteroffer terminates an offer.
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Lapse of time
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An offer terminates upon expiration of a stated time in the offer.
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Supervening Illeglity
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Prior to the acceptance of an offer the object of the offer is made illegal by statute, regulation, court decision or other law
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Mirror Image Rule
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A rule that states that for an acceptance to exist, the offeree must accept the terms as stated in the offer.
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Mailbox Rule
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A rule that states that an acceptance is effective when it is dispatched, even if it is lost in transmission
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Proper Dispatch
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The proper Addressing, packaging, and posting of an acceptance.
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TEST
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TEST
