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Ch6- Agreement —any meeting of the minds resulting in mutual assent to do or refrain from doing something- Bilateral contract —a contract involving two promises and two performances- Unilateral contract —a contract involving one promise, followed by one performance, which then triggers a second performance from the offeror- Express contract —a contract created when the parties have specifically agreed on the promises and performances- Implied contract —a contract in which the agreement is reached by the parties’ actions rather than their words- Quasi-contract —a classification that permits a contract to be enforceable in cases where no express or implied contract exists, where one party suffers losses as a result of another party’s unjust enrichment - Valid contract —a contract that has the necessary elements and, thus, can be enforceable - Void contract —a contract where the agreements have not been formed in conformance with the law from the outset of the agreement and, thus, cannot be enforced by either party- Voidable contract —a contract where one party may, at its option, either disaffirm the contract or enforce it- Unenforceable contract —a contract that meets the elements required by law for an otherwise binding agreement, but is subject to a legal defense- State common law —the governing body of law of contracts for services or real estate- State statutory law —the governing body of law of contracts for goods or products based on the Uniform Commercial Code- Hybrid contracts —contracts that involve terms for both goods and services, where the source of law is established by determining the predominant thrust of the subject matter- Mutual assent —the broad underlying retirement to form an enforceable contract necessitating that the parties must reach an agreement using a combination of offer and acceptance and that the assent must be genuine- Offer —a promise or commitment to do (or refrain from doing) a specified activity. In contract law, the expression of a willingness to enter into a contract bythe offeror promising an offeree that she will perform certain obligations in exchange for the offeree’s counterpromise to perform- Acceptance —the offeree’s expression of agreement to the terms of the offer. The power of acceptance is created by a valid offer- Consideration —requirement for an enforceable contract in addition to agreementin which there is a benefit that must be bargained for between the parties. Generally, a promise is supported by consideration if the promisee suffers a legal detriment by giving up something of value or some legal right and promisor makes her promise as part of a bargained for exchange- Capacity —requirement for a valid contract necessitating that both parties have the power to contract. Certain classes of persons have only limited powers to contract, including minors and those with mental incapacity- Legality —requirement for an enforceable contract necessitating that both the subject matter and performance of the contract must be legal- Public policy —requirement for an enforceable contract necessitating that the terms are consistent with public policy objectives - Genuine assent —requirement for a contract to be enforceable necessitating the knowing, voluntary and mutual approval of the terms of a contract by each party- Statute of frauds —the law governing which contracts must be in writing in orderto be enforceable- Objective intent —requirement for an offer to have legal effect necessitating that generally, the offeror must have a serious intention to become bound by the offer and the terms of the offer must be reasonably certain- Revocation —an action terminating an offer whereby the offeror decides to withdraw the offer by expressly communicating the revocation to the offeree priorto acceptance- Rejection —an action terminating an offer whereby the offeree rejects the offer outright prior to acceptance- Counteroffer —an action terminating an offer whereby the offeree rejects the original offer and proposes a new offer with different terms- Operation of law —another way in which an offer may be terminated by certain happenings or events. Generally, these include lapse of time, death or incapacity of the offeror or offeree, and destruction of the subject matter of the contract priorto acceptance- Irrevocable offers —classification of offers that cannot be withdrawn by the offeror. These include offers in the form of an option contract, offers where the offeree partly performed or detrimentally relied on the offer, and firm offers by a merchant under the Uniform Commercial Code- Detrimental reliance —when the offeree makes preparations prior to acceptance based on a reasonable reliance on the offer- Mirror image rule —principle stating that the offeree’s response operates as an acceptance only if it is the precise mirror image of the offer- Lapse of time —term used to describe an event covered under operation of the law in which a contract may be terminated once either the offeror’s expressed time limit has expired or reasonable time has passed - Mailbox rule —governs common law contracts and provides a rule for when a contract is considered to be deemed accepted by the offeree, thus depriving the offeror of the right to revoke the offer. Generally, the mailbox rule provides that the acceptance of an offer is effective upon dispatch and not when the acceptance is received by the offeree- Mistake —in contract law, an erroneous belief that is not in accord with the existing facts- Mutual mistake —when both parties hold an erroneous belief concerning a basic assumption on which a contract was made- Unilateral mistake —when only one party had an erroneous belief about a basic assumption in the terms of an agreement- Preexisting duty —a duty that one is already legally obligated to do and, thus, generally not recognized as a legal detriment- Bargained for exchange —aspect of consideration differentiating contracts from gifts by holding that a performance or return promise is bargained for only if it was exchanged for another promise- Past consideration —type of contract that is not considered to meet the bargainedfor exchange requirement when the promise is made in return for a detriment previously made by the promise- Nominal consideration —consideration that is stated in a


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Clemson LAW 3220 - Chapter 6

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