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Contracts
Taylor
46
Law
Professional
10/27/2009

Additional Law Flashcards

 


 

Cards

Term

A contract is enforceable only if the person entering into the contract has the capacity to enter the contract considering these factors:

Definition

1. Contract is Lawful

2. No Duress

3. Age

4. Mentally Incompetence

5. Family

 

Term
Elements of a Contract
Definition

1. Offer

2. Consideration

3. Mutual Assent

4. Acceptance

Term
Bilateral Contract
Definition

An exchange of promises between two or more people to take place in the future.

Term
Offer
Definition

A direct and complete proposal, promise, commitment requesting willingness to enter a bargain including:

1. Specific Terms

2. A manifestation of present intent to be bound

3. Communication to the Offeree

Term
Contract
Definition
A legally enforceable promise
Term
Criteria Used to determine whether communication is an offer includes:
Definition

1. Language

2. Surrounding Circumstances 

3. Prior Practice/Relationship

4. Method of Communication

5. Industry Custom

6. Certainty and Definiteness of Terms

 

Term
_____ is the master of the offeror.
Definition
Offeror
Term
Firm Offer (UCC 2-205)
Definition
Terms provided by a merchant that indicates it will remain open, and it is not revocable for lack of consideration.
Term
Elements of Acceptance
Definition

1. Manifestation of assent in a manner required by the offer

2.Complies with the place time and manner of acceptance required in the contract.

3.  Must occur while offer is still open

Term
Acceptance (Bilateral Contract)
Definition
Making the requested promise
Term

Acceptance (Unilateral Contract)

 

Definition
Degree of performance
Term
Mail Box Rule (Re 63)
Definition
Legally binding acceptance once the mail is stamped and enters the mail box; does not have to be receieved by the offeree.
Term
Acceptance by Silence
Definition

1. The offeree takes the benefits of offered services with reasonable opportunity to reject and reason to know there is expectation of compensation.

2. The offeror has understanding silence constitutes acceptance based on previous dealings.

3. Exercises dominion over goods

4. Offer states silence as a method of acceptance

 

Term
Counter Offer
Definition

Any substituted bargain differing from the proposed original offer

Term
Last Shot Rule
Definition

Offer is accepted by showing lack of objection to the counter offer or last counter offer provided before the performance began

Term
Rejection
Definition

A manifestation of intention not to accept an offer

Term
Revocation
Definition
The Offeror Removes the offer and notifies offeree directly or indirectly
Term
Lapse
Definition

Offeree’s power of acceptance is terminated due to time

Term
Unconscionable
Definition
Unfair; affronting reasonableness
Term
Mirror Image Rule (Common Law)
Definition

A purported acceptance that varies the terms of the offer is not an offer; it becomes a counter offer

Term
Mutual Assent (Objective)
Definition
Manifestation to reach a deal on the same bargain at the same time; evidence that shows there is an agreement to the apparent intention
Term
Meeting of the Minds (Subjective)
Definition

Parties rely on actual intent rather than the conduct to determine the common understanding between both parties for binding a contract

Term
Consideration (Re 71)
Definition

Promise or performance that is bargained for, which motivates a person to do something.

Term
Is there Consideration?
Definition

1. The problem must induce a detriment to promisee OR

2. Occurrence of the condition would benefit the promisor.

 

Term
Past Consideration
Definition
Services already performed
Term
Agents
Definition
Acts on behalf of the principle, and may have the right to bind the contracts.
Term
Actual Authority
Definition
Principle communicates to the agent that they have the right to make decisions or bind the company.
Term
Apparent Authority
Definition

A job title or anything that would reasonable allow someone to believe he is acting under authority

Term
Ratification
Definition
Agent acts beyond his authority
Term
Privity of a Contract
Definition
You must be a party in the contract to have rights in the contract
Term
Mutuality of Obligation
(Re 79)
Definition
If both parties are not bound then neither are bound
Term
Promise
Definition
A manifestation of intention to act or refrain from acting in a specified way
Term
Illusory Promise
Definition
Performance is entirely optional, not a real promise
Term
Promissory Estoppel
Definition
A definite and clear promise that the promisee reasonably relies on to his detriment and injustice cannot be avoided without enforcement of the promise
Term
Charitiable Subscriptions
Definition

An oral or written promise to do certain acts for charity or for a charitable purpose.

Term
Restitution/Unjust Enrichment
Definition
A situation in which someone has received something, and it would be unjust for him to retain it without paying for it
Term
Elements of Restitution
Definition

1. P has conferred a benefit on D

2. D has knowledge of the benefit

3. D has accepted or retained the benefit

4. The circumstances are such that it would be inequitable for D to retain the benefit without paying fair value for it.

                                                        

Term
Material Benefit Rule
Definition

If a person receives a material benefit from another, other than gratuitously, a subsequent promise to compensate the person for rendering such benefits is enforceable

Term
Statute of Frauds
Definition
Any law that requires the contract to be in writing and signed for enforcement
Term
Discovery
Definition
Recovering any documents or papers that may be evidence of the existence of a contract
Term
Interpretation
Definition

The process in which the court gives meaning to contractual language when the parties attach materially different meanings to the language

Term
Parol Evidence Rule
Definition
The admissibility of oral or written evidence, and may only apply to various types of written contracts
Term
Parol Evidence Guidelines
Definition

1.  Does not apply to evidence offered to explain the meaning of the agreement.

2.  Does not apply to agreements, whether oral or written, made after the execution of the writing. 

3.  Does not provide evidence to show the effectiveness of the agreement was subject to an oral condition precedent.

4. Does not apply to evidence offered to show that the agreement is invalid for any reason , such as fraud, duress, undue influence, mistake or illegality.

5.  Does not apply to evidence that is offered to establish a right to an equitable remedy such as reformation of the contract.

6.  Does not establish a collateral agreement between two parties.

Term
Integration
Definition

Complete Integration - Final Contract, deals with all aspects of agreement

Partial Integration - Only some aspects of the agreement is in writing

 

Term
Merger Clause
Definition
States a document is intended to be the final agreement, there are no agreements or promises outside of the document, not conclusive, but gives a strong presumption
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