47 Cards in this Set
| Front | Back |
|---|---|
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Liquidated Damages
|
Damages agreed upon before breach occurs
|
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Executory
|
One or more parties have not acted
|
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Executed
|
One or more parties has not acted
|
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Informal
|
Outside the scope of the statute of frauds, writing is NOT required
|
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Formal
|
Within the scope of the statute of frauds, writing is required
|
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Writing Required for:
|
-Real Estate
-Impossible to be performed in 1 year
-Contract for the sale of goods>=$500
-Guaranty
-Any promise given in consideration of marriage
|
|
What you need for a written contract
|
-Date
-2 Signatures
-What was Exchanged
|
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Express
|
Words (not necessarily written down)
|
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Implied-In-Fact
|
Contract is determined by conduct (Barber Shop)
|
|
Implied-In-Law (4 Elements)
|
1. Service was provided
2. Expectation of payment
3. Opportunity to reject
4. Quantum Meruit FMV
|
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Objective Theory of Contracts
|
In an objective observer could tell that a contract exists, then it does
|
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An Offer Has To Be:
|
1. Serious
2. Definite
3. Communicated
|
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Serious means not:
|
in anger, estimate, preliminary negotiations, advertisements
|
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Definite
|
definite enough that a court of competent jurisdiction can have a reasonably certain basis for an appropriate remedy. Quantity is a must.
|
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Communicated
|
An offer must be communicated in order to be properly accepted
|
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Offer is Terminated after...
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A lapse of a reasonable amount of time
|
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Revocation of a Unilateral Offer
|
Before substantial performance
|
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Revocation of a Bilateral Offer
|
Before return promise given
|
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Irrevocable offers
|
May be purchased (Options)
|
|
Operation of Law
|
A court strikes it down
|
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4 Ways an Offer Can Die
|
-Lapse
-Revocation
-Rejection
-Operation of Law
|
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Acceptance of a Bilateral Offer
|
Return of a promise, "Mirror Image Rule"
|
|
Mailbox Rule
|
If nothing else is set, an offer is valid when it is put in a mailbox
|
|
Consideration
|
Consideration
|
|
Pre-existing Legal Duty
|
If you're already under contract, you can't cash in on a reward
|
|
Disputed Debt
|
May be settled. If you cash the check, theres no debt. Accord and Satisfaction.
|
|
Undisputed Debt
|
Cash the check and the contract is still on
|
|
Novation
|
1. original contract
2. tear up original
3. new contract
|
|
Promissory Estoppel
|
A promise someone gave you without consideration made you change your course of action. Disney case
|
|
3 Types of Ratification
|
-Expressly
-Implied
-Failure to Disaffirm
|
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Ratification
|
Approve/ Validate
|
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Fiduciary Relationship
|
Relationship with trust and confidence, usually a dominated/dominator relationship
|
|
Unilateral Mistake
|
typo or misplaced decimal point egregious error then voidable
|
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Bilateral Mistake
|
Failure to have a meeting of the minds
|
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Fraud
|
Tricking someone in to signing something
|
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Fraud In the Inducement
|
Misrepresentation of a material fact
|
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Scienter
|
Ill will, evil motive
|
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Justifiable Reliance
|
Whether the other party should have relied on the misrepresentation
|
|
4 Elements of Fraud
|
Misrepresentation
Scienter
Justifiable Reliance
Damages
|
|
Illegality Based On
|
Consideration,Violates Statute, Licensing
|
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Form
|
Within the scope of the statute of frauds`
|
|
Four Corners Rule
|
If the contract is in writing, you don't go outside of the page to interpret
|
|
Parol Evidence Rule
|
Any prior statements will not be allowed to alter the terms of a contract except if delivered in like new condition
|
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Justifiable Reliance
|
Somebody makes a financial decision based on your wrong statement
|
|
Quantum Meruit
|
You get reasonable value of services
|
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Quasi Contract
|
Contract based on what one has earned
|
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Accord and Satisfaction
|
Accepting a lower figure to relinquish a debt
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ACCT 324: Test 1