Term
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Definition
| A promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. |
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Term
| Elements of a valid contract |
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Definition
- Agreement: Includes an offer from one party to enter into a legal contract and acceptance from another party accepting the terms.
- Consideration: Something of value received or promised, such as money, to convince another party to make a deal.
- Capacity: The law must recognize them as having characteristics as competent parties. (Age, mental capacity, etc)
- Legality: Must be to accomplish some goal that is legal and not against public policy.
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Term
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Definition
| A promise for a promise. No performance or payment has to take place before a bilateral contract is drawn. |
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Term
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Definition
| Promise for an act. Example is the person carrying a package across the Brooklyn Bridge. The act was done before entering into the contract, then the person agreed to receive $20 for crossing the bridge with the package. Some act is already performed in advance. |
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Term
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Definition
| Terms of agreement are fully and explicitly stated in words, oral or written. e.g. lease contract. |
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Term
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Definition
| The conduct of the parties, rather than their words, creates and defines the terms of the contract. This is a contract that is implied from the conduct of the parties. |
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Term
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Definition
| A contract that the terms have been fully performed on both sides. |
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Term
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Definition
| Contract for which the terms have not been fully performed by the parties. Commonly used in the context of bankruptcy. |
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Term
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Definition
| Entitles at least one of the parties to enforce it in court. Must also contain the 4 (ACCL) criterion of a valid contract. |
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Term
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Definition
| Valid contract but one that can be avoided at the option of one or both of the parties. At least one party has the ability to void the contract and not perform their duty indicated in the contract. |
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Term
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Definition
| Cannot be enforced because of certain legal defenses against it. It is not unenforceable because one party didn't perform, rather because some statute rendered it unenforceable. |
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Definition
| Is no contract at all. The terms void and contract are contradictory. |
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Term
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Definition
| Fictional contracts created by courts and imposed on parties in the interests of fairness and justice. Equitable rather than contractual in nature. Imposed to avoid the unjust enrichment of one party at the expense of another. That means one party can't enrich oneself inequitably at the expense of another party. |
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Term
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Definition
| Means "As much as he or she deserves" in Latin. Describes the extent of compensation owed under a contract implied in law. |
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Term
| Requirements of a valid OFFER |
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Definition
- Offeror must have serious intention to become bound by the offer.
- Terms must be reasonably certain, or definite.
- Offer must be communicated to the offeree.
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Term
| Elements that are NOT offers |
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Definition
- Expressions of Opinion
- Statements of Future Intent
- Preliminary Negotiations
- Agreements to Agree
- Advertisements
- Auctions
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Term
| The definiteness of Terms with an Offer |
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Definition
- The identification of the parties
- Identification of the object or subject matter of the contract, including work to be performed, and items like goods, services.
- The consideration to be paid
- The time of payment, delivery, or performance.
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Term
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Definition
| An offeror's act of withdrawing (revoking) an offer. Offeror can usually revoke the offer as long as the revocation is communicated before the offeree accepts. |
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Term
| 4 Ways Offers are Terminated by Operation of Law |
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Definition
- Lapse of time
- Destruction of the specific subject matter of the offer.
- Death or incompetence of the offeror or the offeree.
- Supervening illegality of the proposed contract.
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Term
| 3 Requirements for implied-in-fact contracts |
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Definition
- Plaintiff furnished some service or property
- Plaintiff expected to be paid for that service or property, and defendant knew or should have known that payment was expected.
- Defendant had a chance to reject the service or property and did not.
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Term
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Definition
| If a contract's words appear to be clear and unambiguous, a court cannot consider extrinsic evidence (evidence not contained in the contract). |
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Term
| 8 Rules of interpretation of contracts |
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Definition
- All terms of a contract will be given a meaning
- Contract will be interpreted as a whole; specific clauses are part of general intent
- Terms of separate negotiation will be given greater consideration.
- Word will be given its commonly accepted meaning. Technical words will be given technical meaning unless specified.
- Specific and exact wording gets greater consideration than general language.
- Written or typewritten terms will prevail over preprinted ones.
- Ambiguous word with multiple meanings will be interpreted against the party who drafted the contract.
- Evidence of trade usage, prior dealing may be admitted to clarify meanings. courts will look at what is common to the business or industry.
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