First Hour – Business Law – Contract Law Vocabulary – Flashcards
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Contract
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Any agreement enforceable by law
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Offer
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A proposal by one party to another intended to create a legally binding agreement
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Acceptance
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A second party's unqualified willingness to go along with the first party's proposal
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Genuine Agreement
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A valid offer is met by a valid acceptance.
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Capacity
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The legal ability to enter a contract
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Consideration
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The exchange of things of value
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Legality
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People cannot enter into a contract to do illegal acts
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Valid
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Legally binding
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Void
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No legal effect and the agreement is missing one of the elementsNo legal effect and the agreement is missing one of the elements
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Voidable Contract
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When a party to a contract is able to void or cancel a contract for some legal reason
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Unenforceable Contract
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a Contract the court will not uphold generally because of some rule of law such as the statute of limitations
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Statute of Limitations
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If you wait too long to bring a lawsuit for breach of contract, making the contract unenforceable
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Expressed Contract
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A contract stated in words and may be either oral or written
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Implied Contract
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A contract that comes about simply from actions of the parties
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Bilateral Contract
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contract containing two promises in which one party promises to do something in exchange for the other party to do something else
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Unilateral Contract
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A contract that contains a promise by only one person to do something if and when the other party performs some act
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Oral Contract
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A contract that is created by word of mouth and comes into existence when two or more people from a contract by speaking to each other
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Written Contracts
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Contracts are more desirable so both parties know the exact terms of the contract and also provides proof that the agreement was made
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Statute of Frauds
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A law requiring that certain contracts must be in writing to be enforceable
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Invitations to Negotiate
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Are related to advertisements in newspapers, magazines, radio broadcasts, and websites to name a few advertising a product
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Mirror Image Rule
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Known when the acceptor of a contract must not change the terms of the original offer in any way
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Counteroffer
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Any change in the terms of the offer means the offeree has not really accepted the offer
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Revocation
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Taking back of an offer by the offeror because the offeror has a change in mind or circumstances and decides to withdraw the offer before it has been accepted
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Rejection
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Refusal of an offer by the offeree brings the offer to an end
