Term
| Requirments of a valid contract |
|
Definition
Offer
Acceptance
Consideration |
|
|
Term
|
Definition
One Party offers to enter into a legal agreement
-commitment to do or refrain from doing something specified in the future |
|
|
Term
|
Definition
| The other party must agree to the terms of the agreement |
|
|
Term
|
Definition
| Something of value received or promised, such as money, to convince a person to make a deal |
|
|
Term
|
Definition
A Promise for a Promise
(formation) |
|
|
Term
|
Definition
Promise for an act
(formation) |
|
|
Term
|
Definition
Requires a special form of creation
(formation) |
|
|
Term
|
Definition
Requires no form of special Creation
(formation) |
|
|
Term
|
Definition
formed by words (oral, written, or a combination)
(formation) |
|
|
Term
|
Definition
formed by the conduct of the parties
(formation) |
|
|
Term
|
Definition
a fully performed contract
(performance) |
|
|
Term
|
Definition
a contract not fully performed
(performance) |
|
|
Term
|
Definition
functional contracts created by courts and imposed on paries inthe interests of fairness and justice. They are equitable rather than contractual
|
|
|
Term
|
Definition
1. one party induces a reliance on another party
2. party relies on other
3. party gets hurt |
|
|
Term
|
Definition
1. must have serious intention to become bound by the other
2.Resonbaly certian and derninte terms
3. communicated to the offeree
a. advertisments
b. auctions
c. rewards |
|
|
Term
|
Definition
1. by its own terms
2. by lapse of time
3. revocation
a. actual notice
b. constructive notice
4. rejection
a. express
b. implied
5. misc. termination rules |
|
|
Term
| definiteness of the terms includes |
|
Definition
1. identification of the parties
2. identification of the object or subject matter of the contract
3. consideration to be paid
4. time of payment, delivery, or performance |
|
|
Term
|
Definition
| the offer must be communicated to the offeree. one cannot agree to a bargainwithout knowing that it exists |
|
|
Term
|
Definition
The offeror's act of withdrawing an offer
The offeror usually can revoke the offer as long as the revocation is communicated ot the offeree before the offeree accepts |
|
|
Term
misc. termination factors
|
|
Definition
destruction of the subjet matter
death or incompetence of the offeror or offeree
supression illegality of the proposed contract |
|
|
Term
| Elements of the Acceptance |
|
Definition
1. Voluntary
2. Mirror Image
3. COmmunication
a. silence
b. specified method
c. suggested method
d. non specific or suggested method
4. MAILBOX RULE
a. contradictory responses
b. way to avoid the mailbox rule |
|
|
Term
|
Definition
| a voluntary act by the offeree that shows agreement to nthe terms of an offer |
|
|
Term
|
Definition
revocations
rejection
counter offer |
|
|
Term
| termination operation of law |
|
Definition
lapse of time
destruction of subject matter
death to the offeror or offeree
superverning eillegality |
|
|
Term
|
Definition
| requires teh offeree's acceptance to match the offeror's pffer exactly |
|
|
Term
|
Definition
| if the authorized mode of communication is the mail, then an acceptance becomes valid when it is mailed not when it is recieved |
|
|
Term
| contradicting responsese to the mailbox rule |
|
Definition
revocation is effective when the offeror recieves notice
acceptance is effective when the offeree recieves notice |
|
|
Term
| Elements of Consideration |
|
Definition
1. something of legal value
2. bargained for and given in exchange for a promise or an act |
|
|
Term
|
Definition
| something of legally sufficient value must be given in exchange for a promise. this make consist of a promise, a performance, or a forbearance |
|
|
Term
|
Definition
| there must me a bargianed-for exchange |
|
|
Term
| 3 problems with consideration |
|
Definition
1. nothing of value
2. no bargianed-for exchange
3. special situation |
|
|
Term
|
Definition
| when the nature or extent of performance is too uncertain the promise is rendered illusory and unenforecable |
|
|
Term
|
Definition
| a promise to do what one already has a legal duty to do does not constitue legally sufficeint consideration |
|
|
Term
|
Definition
| you cannot bargain for something that has already happened in the past. it is uneforceable |
|
|
Term
|
Definition
|
|
Term
|
Definition
| the legal avoidance or setting aside of a contractual obligation. to disaffirm a minor must express his or her intent through words or conduct not to be bound to the contract |
|
|
Term
|
Definition
| minor need only return the good subject to the contract provide the goods are in the minors possession or control |
|
|
Term
|
Definition
| the duty to restore the adult party to the position that she or he held before the contract was made |
|
|
Term
|
Definition
| a minor can under normal circumstances disaffirm their contract even if they have lied about their age |
|
|
Term
|
Definition
| is the act of accepting and giving legal force to an obligation that previously was not enforceable. |
|
|
Term
| exceptions to disaffirmance |
|
Definition
1. necassaries
2. ratification
3. fraud or misrepresentation |
|
|
Term
| Disaffirmance while intoxicated |
|
Definition
| if a contract is voidable because of a persons intoxication, that person has the option of disaffirming it while intoxicated and for a reasonable time after becoming sober |
|
|
Term
| ratification while intoxicated |
|
Definition
| an intoxicated person after becoming sober may ratify a contract expressly or impliedly just as a minor may do on reaching the age of majority |
|
|
Term
| general rules of intoxication |
|
Definition
| if a person is sufficiently intoxicated when making a contract and can not understand the legal consequences the contract can become voidable. however if they are aware of the consequences it is not voidable |
|
|
Term
| Void contract with mental incompetent |
|
Definition
| if a court has declared a person to be mentally incompetent and appointed a legal gaurdian any contract made by that person is void from the outset |
|
|
Term
| voidable contract with mental incompetance |
|
Definition
| if a court has NOT declared a personmentally incompetent but that person lacked the capacity ot comprehend the subject matter, nature, and consequences of the agreement then the contract is voidable at that persons option |
|
|
Term
| valid contract with mental incompetance |
|
Definition
| if a court has NOT declared a person mentally incompetent and that person was able to understand the nature and effect of the contract at the time it was formed, then the contract is valid and enforeable |
|
|
Term
| contracts violating statutes include |
|
Definition
1. wagering
2. blue laws
3. usury |
|
|
Term
|
Definition
prevent from buying on certian days
ex. not being able to buy alcohol on sundays |
|
|
Term
|
Definition
| a lender who makes a loan at an interest rate above the lawful maximum rate |
|
|
Term
|
Definition
| all states require that member of cerrtain proffessions or occupations obtain liceses allowing them to practice. |
|
|
Term
| Contracts with Negative Impacts on Society |
|
Definition
| price filing or monopolies |
|
|
Term
|
Definition
| reasonable in duration, area they cover, serve business purpose, cant impose hardship on employee |
|
|
Term
| unconsciousable contracts |
|
Definition
they are so unscrupolulous or grossly unfair as to be "void of contscience"
Certain circumstances bargains are so oppressive taht the courts relieve innocent parites of part or all of thier duties |
|
|
Term
|
Definition
| consists of distinct parts taht can be performed separately with separate consideration provided for each part |
|
|
Term
|
Definition
| an untrue belief about a past or existing fact |
|
|
Term
|
Definition
Both parties are mistaken
a. relates to a basic assumption on which the contract is made
b. unjured party does not bear the risk of the mistake |
|
|
Term
|
Definition
one party mistaken
Must show one of the following for contract to not be enforced
a. the nonmistaken party caused or had reason to know of the mistake
b. unconscionablility |
|
|
Term
| Elements to Misrepresentation |
|
Definition
1. a misrepresentation of a material fact must occur
2. there ust be an intent to deceive
3. the innocent party must justifiably rely on the misrepresentation |
|
|
Term
|
Definition
-half truths
-failing to correct a mistake when you know about it
- failng to correct a true statement that becomes false
- fiduciary relatinships |
|
|
Term
|
Definition
| a party takes specific action to conceal a fact that is material to the contract |
|
|
Term
| reliance on misrepresentation |
|
Definition
the decieved party must have a justifiable reason for relying on the misrepresntation of the information given.
Person lies about age to car rental co. |
|
|
Term
|
Definition
| one party can greatly influence another pary, thus overcoming that partys free will |
|
|
Term
|
Definition
fear created by threats
agreement to the terms of a contract is not coluntary if one of the parties is forced inot the agreement
act must be wrongful or illegal |
|
|
Term
|
Definition
1. Marriage
2. Year Rule
3. Land
4. Estate
5. Goods
6. Secondary |
|
|
Term
|
Definition
Contract must be written to be enforceable
everything attached to the land is included including the soil itself |
|
|
Term
| statue of fraud-one year rule |
|
Definition
| a contract that cannot by its own terms be performed within one year from the day after the contract is formed must be in writing to be enforceable |
|
|
Term
| statue of fraud-secondary |
|
Definition
| a promise made by a third party to assume the debts or obligations of a primary party to a contract if that party does not perform |
|
|
Term
| statute of fraud-marriage |
|
Definition
| a unilateral promise to make a monetary payment or to give property in consideration of a promise to marry must be in writting |
|
|
Term
|
Definition
| must have a written contract for goods purchases at $500 or more |
|
|
Term
| contractual liability end upon... |
|
Definition
-occurrence or failure of a condition
-performacne or breach
-agreement of the parties
-operation of the law
-excuse |
|
|
Term
|
Definition
|
|
Term
| contract discharge by breach |
|
Definition
material breach
anticipatory repudiation |
|
|
Term
| contract discharge by operation of law |
|
Definition
material operation
statute of limitations
bankruptcy
impossibility or impracticability of performance |
|
|
Term
| contract discharge by failure of a condition |
|
Definition
| if performance is conditional, duty to perform does not become absolute until that condition occurs |
|
|
Term
| contract discharge bye agreement |
|
Definition
mutaul rescission
novation
accord and satisfaction |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| verbal or writting (stated) |
|
|
Term
|
Definition
| arises from the circumstances surrounding the situation |
|
|
Term
|
Definition
| created by law, standards |
|
|
Term
|
Definition
complete
substantial
inferior/material breach
anticipatory breach |
|
|
Term
|
Definition
| when the contract performance is completed perfectly |
|
|
Term
|
Definition
| completes the contract perfomance perfectly |
|
|
Term
| substantial performance discharge |
|
Definition
| a party in good faith completes a substantial amount of the contract |
|
|
Term
| material breach discharge |
|
Definition
| the non performance of a contractual duty. it is breached when it is not substantially performed |
|
|
Term
| anticapatory breach discharge |
|
Definition
| before either party to a contract has a duty to perform one of the parties may refuse to carry out his or her contractual obligations |
|
|
Term
|
Definition
mutual agreement
accord and satisfaction
waiver
alteration
|
|
|
Term
|
Definition
|
|
Term
| discharge by accord and satisfaction |
|
Definition
| some other form of payment like painting a house in exchange for a dog |
|
|
Term
|
Definition
pattern has to be established
ex. i cant sue after signing waver if i hurt myself skydiving |
|
|
Term
|
Definition
| alters a written contract with out knowledge of other party, other party is not responsible now |
|
|
Term
|
Definition
bankruptcy
expiration of the statute of limitations |
|
|
Term
|
Definition
| exempt forever from that situation |
|
|
Term
| expiration of the statute of limitations |
|
Definition
| after certian time has passes you lose the chance to sue |
|
|
Term
|
Definition
impossibility
frustration of purpose |
|
|
Term
|
Definition
| objectively impossible by anyone |
|
|
Term
|
Definition
| benifit that you would recieve from contract can no longer be achieved |
|
|
Term
| commercial impractability |
|
Definition
| unforseeable event impacts the cost of the contract |
|
|
Term
| legal remedies for breach |
|
Definition
must be cash
reasonable certianity
foreseeable at time of contracting
duty to mitigate |
|
|
Term
|
Definition
compensatory
sonsequential
nominal
puntive |
|
|
Term
|
Definition
| compensate for loss of contract |
|
|
Term
|
Definition
| as a result due to the breach of the contract |
|
|
Term
|
Definition
| contract was breached and no real loss |
|
|
Term
|
Definition
|
|
Term
| equitable remedies to breach |
|
Definition
specific performance
injunctions
reformation
recission and restituion |
|
|
Term
|
Definition
what is being contracted is unique
never awarded in a personal service contract |
|
|
Term
|
Definition
| the actions to stop a action from happening and $ |
|
|
Term
|
Definition
| when legal remedies are not enough |
|
|
Term
| recission and restitution |
|
Definition
| a request to return something to its rightful owner |
|
|
