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31 Cards in this Set

  • Front
  • Back
In which theory of contract law did parties have to exchange things of equal value?
Equity Theory
Which theory of contract law focused on whether each party exercised free will in entering into the contract regardless whether the terms of the contract were fair?
Will Theory
Which theory of contract law concentrated on the form or structure of the agreement?
Formalist Theory
What do we call any agreement enforceable by law?
A contract
What six elements must a contract have to be legally binding?
Offer, Acceptance, Genuine Agreement, Consideration, Capacity, Legality
An agreement that is not legally binding
A Void contract
A valid contract in which a party to the contract is able to void or cancel the contract legally.
Voidable Contract
A contract that the courts will not uphold or enforce, usually because it violates some law
Unenforceable Contract
A restriction on the time period that a person can file a lawsuit.
Statute of Limitations
A contract that is stated in words.
Express Contract
A contract that comes about from the actions of the parties often without a written oral agreement.
Implied Contract
An agreement that contains 2 promises (one from each party)
Bilateral Contract
A contract that contains a promise by only one person if and when the other party performs some act
Unilateral Contrat
A contract in which the terms have been agreed to by oral communication
Oral Contract
A contract in which the terms of the contract are written down
Written Contract
The person making the offer
Offeror
The person who receives the offer
Offeree
What are the three requirements of an offer?
Serious Intent, Definite and Certain, Communicated to the offeree
An offer must be made with the intention of entering into a legal obligation (not in anger, jest, or terror)
Serious Intent
The law does not care what is in the mind of the person making an offer, but rather what is the appearance of this person's intent
"Test of a Reasonable Person"
Information communicated in advance without indicating an intent to enter into a contract
Preliminary Negotiations
Newspaper ads, price tags, sale price signs are not offers but rather they are ...
Invitations to Negotiate
What are the three requirements of a legally binding acceptance?
1. Acceptance must be unconditional
2. Acceptance must be made by the person to whom the offer was made
3. Acceptance must be communicated to the offeror
What is the "mirror image rule"?
The acceptance must not change the terms of the original offer in any way
When does an oral acceptance become effective?
The moment the words are directly communicated to the offeror
When does a long distance acceptance become effective?
When it is handed over to the "sending agency"
What are the 5 ways that an offer may be terminated?
Revocation, Rejection, Counteroffer, Expiration of Time, Death or Insanity
What do we call the taking back of an offer before it is accepted?
Revocation
What do we call the refusal of an offer by an offeree that brings an offer to an end?
Rejection
What do we call it when an offeree rejects the original offer and creates a new offer?
Counteroffer
What do we call a binding agreement to hold an offer open for a specified period of time?
Option