37 Cards in this Set
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acceptance
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a key factor in the agreement element of a contract; consists of the agreement of one party, the offeree, to the terms of the offer in the contract made by the other party, the offeror
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agreement
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consists of an offer made by one party, the offeror, and the acceptance of the offer by another party, the offeree
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bilateral contract
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a promise exchanged for a promise
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consideration
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bargain for a legal detriment; one party is promising to give up something of theirs (a detriment) and the other party is promising to give up something in return
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contract
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a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty
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contractual capacity
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the legal ability to enter into a binding agreement
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covenant not to compete
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an agreement not to compete against a party for a set period of time within a designated geographic area
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executed
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a term applied to a contract whose terms have all been fully performed
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executory
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a term applied to a contract whose terms have not all been fully performed
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express contracts
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a contract in which all the terms are clearly set forth in either written or spoken words
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formal contracts
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a contract that must have a special form or must be created in a specific manner
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implied contracts
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a contract that arises not from words of agreement but from the conduct of the parties
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informal contract
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a contract that requires no formalities (simple k)
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lack of genuine assent
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a defense to the agreement of a contract in which the offeree claims that the offeror secured the agreement through improper means, such as duress, fraud, undue influence, or misrepresentation
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letter of credit
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a binding document that a buyer obtains from his or her bank to guarantee that payment for goods will be made to the seller
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negotiable instruments
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a written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument; an acceptable medium for exchanging value from one person to another
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offer
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a key factor in the agreement element of a contract; consists of the terms and conditions set by one party, the offeror, and presented to another party, the offeree
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plain-meaning rule
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a rule of interpretation which states that words in a contract should be given their ordinary meaning
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quasi-contracts
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a court-imposed contractual obligation to prevent unjust enrichment
**not a contract because at least one or more six requirements were missing
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recognizance
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an obligation in which a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so
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simple contract
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contract that is not a formal contract (informal k)
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unenforceable
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a term applied to a contract, that because of a law, cannot be enforced by the courts
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Uniform Commercial Code (UCC)
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a statutory source of contract law in the US that is applicable to transactions involving the sale of goods. The UCC was created in 1952 and adopted by all 50 states, the District of Columbia, and the Virgin Islands; it may be modified by each state to reflect the wishes of the state legi…
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unilateral contract
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a promise exchanged for an act
General rule: must be completed
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valid
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a term applied to a contract that includes all four elements of a contract - agreement (offer and acceptance), consideration, contractual capacity, and legal object - and thus is enforceable
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void
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a term applied to a k that is not valid b/c its object is illegal or it has a defect that is so serious that it is not a contract
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voidable
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a term applied to a k that one or both parties have the ability to either withdraw from or enforce
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implied radification
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contract is voidable but must be in a reasonable amount of time or it is imlied ratification
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Things that are not offers (7)
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1. future offer
2. offer made in jest (joke)
3. preliminary negotiations
4. invitations
5. invitation to offer
6. inquiries
7. answers to inquiries
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What can happen to an offer?
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1. rejection by offeree
2. accepted by offeree
3. revocation by offeror (can be revoked prior to acceptance)
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rejection by offeree:
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-flat rejection
-counter offer
-qualified acceptance (common law = counter offer = rejection)
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Firm Offer
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Sales K only:
-offer
-a promise to keep the offer open
-made by a merchant in writing
-that lasts for 3 months or less
-no consideration required
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Sales contract
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legislative and have adopted forms of the UCC article 2: present transfer of title to goods (title means ownership)
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Common Law contracts
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case laws:
1. sale of real property
2. sale of intangible goods
3. contract for services
4. sale of business
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optional contract
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CL or Sales: give an offer and say it will be open for X days, but if you take the option away early then the offerer had an implied revocation and cannot revoke the contract
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Condition subsequent
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offer can end in a future time, regardless of if you accept or not
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implied agency rule
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acceptance must be sent in the same form as the offer (via mail, phone etc) only for common law
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BLS 342: EXAM 1