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20 Cards in this Set
- Front
- Back
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Oral Contracts
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They can be binding. If a sale of goods less than $500 no written contract is necessary.
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Uniform Commercial Code
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(UCC) Active in all states but Louisianna. Requires the sale of goods to be the same in all states. Provides ease of conducting transactions across business lines.
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Contract
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An agreement between atleast two parties.
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Requirements of a Valid Contract
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1. Agreement-offer and acceptance; can be oral and written. "A meeting of the minds."
2. Consideration-promises must be supported by something of value such as money. 3. Contractual Capacity-both parties entering must qualify as competent parties. 4. Legality-purpose must be to accomplish some goal that is legal and not against public policy. |
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Bilateral Contracts
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If to accept the offer the offeree must only promise to perform. No consideration necessary. "Promise for promise."
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Unilateral Contract
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The offer is phrased so that the offeree can accept the offer by completing the contract performance. "Promise for act."
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Implied Contract
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A conduct that is implied from the conduct of the parties.
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Void Contract
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Really no contract at all. No legal obligations on the part of either party. Contract can be void if purpose of the contract was illegal.
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Voidable Contract
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A valid contract but one that can be avoided at the option of one or both of the parties. Minors contracts are voidable.
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The Offer
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A promise or commitment to do or refrain from doing something specified in the future.
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Elements of the Offer
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1. Offeror must have serious intention to become bound by the offer.
2. The terms of the offer must be reasonably certain so that the parties and the court can ascertain the terms of the contract. 3. The offer must be communicated by the offeror to the offeree. |
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Option Contract
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Created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree. Takes away the offeror's power to revoke the offer for the period of time specified in the option.
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Promissory Estoppel
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When the offeree justifiably relies on an offer to her or his detriment. The offeror is barred from revoking the offer.
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Consideration
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Usually defined as the value given in return for a promise or in return for a performance.
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Contractual Capacity
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The legal ability to enter into a contractual relationship.
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Mental Incompetence
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If a person has been institutionalized the contract is VOID. If the person is "labeled" ill then they are voidable.
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Usury
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A lender who makes a loan at an interest rate about the lawful maximum is guilty of usury.
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Unconscionable Contracts
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A bargain that is so unfair that courts relieve innocent parties of part or all of their duties; they are so unscrupulous or grossly unfair as to be void of conscience.
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Exculpatory Clauses
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Clauses that release a party from liability in the event of monetary or physical injury no matter who is at fault.
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Three Things that must be shown for Fraud...
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1. A misrepresentation of a material fact must occur.
2. There must be an intent to decieve. 3. The innocent party must justifiably rely on the misrepresentation. A party must also have been injured to collect damages. |
