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68 Cards in this Set
- Front
- Back
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Legal assent |
A promise the courts will require the parties to obey( a meeting of the minds) |
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Mistake of fact |
An erroneous belief about the facts of the contract at the time the contract is concluded |
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Unilateral mistake |
result of an error by one party about a material fact.A fact that is important in the context of the particular contract |
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Mutual mistake |
Shared by both parties to the agreement |
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Misrepresentation |
An untruthful assertion by one of the parties about a material fact; prevents the parties from having the nental agreement necessary for a legal contract |
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Innocent misrepresentation |
Results from a false statement about a fact material to an agreement that the person making it believed to be true |
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Scienter |
Knowledge |
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Negligent misrepresentation |
If he could have known the truth by using reasonable care to discover or reveal it |
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Fradulent misrepresentaion |
Consciously false representation of a material fact intended to mislead the other party also referred to as intentional misrepresentation |
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Concealment |
The active hiding of the truth about a material fact |
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Nondisclosure |
A failure to provide pertinent information about the projected contract |
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Undue influence |
Refers to the special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade other and interfere with that persons ability to make his or her own decision |
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Duress |
Occurs when one party is forced into the agreement by the wrongful act of another |
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Adhesion contract |
Contract created by a party to an agreement that is presented to the other party on a take it or leave it basis. |
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Statuate of frauds |
(1) ease contractual negotiations by requiring sufficient reliable evidence to prive existence and specific terms of a contract (2) prevent unreliable oral evidence from interfering with a contractual relationship (3) prevent parties from entering into contracts with which they do not agree |
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Exceptions of statute of frauds |
(1) admission that an oral agreement exists(2) partial performance of the contract(3) primissory estoppel(4) various exceptions under the UCC |
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Marriage |
Contracts made in consideration of marriage |
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Year |
Contracts whose terms prevent possible performance within one year |
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land |
Contracts related to an interest in land |
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Executor |
Contracts in which the executor promises to pay thr debt of an estate with the executors own money |
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Goods |
Contracts for the sale of goods totaling more than $500 |
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Sufficiency on writing |
Must indicate(1) the parties to the contract (2) the subject matter of thr agreement(3) consideration given for the contract(4) all relevant contractual terms(5) signature of at least the party against whom action is brought |
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Parole evidence rule |
A common law rule stating that oral evidence of an agreement made prior to or contemporaneously with the written agreement is inadmissible when the parties intend to have a written agreement to be the conlmplete abd final version of their agreement |
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Integrated contracts |
Are written contracts within the statuate of frauds intended to be the complete and final representation of the parties agreement,thus precluding the admissibility of parole evidence other than in the merger clause |
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Merger clause |
Attenpt to signal to judges that the written contact is intended to be the final and complete statement of their agreement |
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Obligor |
A contractual party who owes a duty to the other party in privity of the contract abd now must instead perform for a third party |
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Obligee |
Receives performance from a third party |
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Assignment |
Transfer of rights under a contract to a third party |
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Assignor |
Party to a contract who transfers his or her rights to a third party |
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Assignee |
A party not in privity to a contract who is the recipient of a transfer of rights to a contract |
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Contractual rights that cannot be assigned |
(1) rights that are personal in nature(2) rights that would increase the obligors risks or duties(3) rights in a contraxt that expressly forbid assignment |
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Delegation |
Transfer of a duty ubder a contract to a third party |
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Delegator |
Party to a contract who transfers his or her duty to a third party |
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Delagatee |
Party not in privity to a contract who is the recipient of a transfer of duty to a contract |
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Compensatory damages |
Damages designed to put the plantiff in the position he or she would have been in had the contract been fully performed |
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Nominal damages |
Token damages that merely recignize that the plantiff had been wronged |
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Punitive damages |
Damages designed to punish the defendant |
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Liquidated damages |
Damages specified in advance in the contract |
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Equitable remedies |
Are granted only when legal remedies are inadequate |
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Specific performance |
An order requiring the defendant to perform some act |
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Injunction |
Order prohibiting the defendant from performing some act |
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Reciscission and restitution |
Termination of the contract and the return of the parties to their precontract status |
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Conplete performance |
Best way to be discharged from a contract |
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Discharge by material breach |
If parties mutually agree to discharge one another,thereby justifying that the non-breaching party be discharged. |
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Methods of discharging a contract |
Conditions,performance,material breach, mutual agreement, operations by law |
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Condition precedent |
Partys duty to perform never arises after a particular event occurs; if the event never occurs, the party's duty to perform never arises and the parties are discharged from the contract |
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Condition subsequent |
Party has a duty to perform until a future event occurs that discharges the party from the obligation |
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Condition concurrent |
Partys duty to perform requires that each party perform for the other at the same time. If one party offers to perform his duty and the other party does not , he can sue the othr for nonperformance |
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Express conditions |
Conditions in the contract that are usually preceded by words such as provided that,if, or when. If these conditions are not met, a party could be discharged from the contract |
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Implied conditions |
Conditions that are inferred from the nature and language of the contract and are not explicitly stated. If not met, the party could be discharged from the contract |
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What is bankruptcy? Insolvency |
Dont have enough money or assets on hand to pay your debts when due. Where everything begins in bankruptcy |
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Bankruptcy side notes |
Bankruptcy procedure is federal law Most bankruptcies are individuals Built around debtors and creditors Business don't benifit when individuals file for bankruptcy Before 2005 it was found that people were taking advantage of chapter 11 bankruptcy A means test calculates which bankruptcy you should file Chuld support, alimony and education loans cannot be discharged |
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Debtors |
An entity that owes money to another entity |
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Creditors |
Entity to which a debtor owes money |
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Chapter 7 liquidation |
A business thats closing its doors no longer in operation(sale of nonexempt assets and distribution of money to the creditors) |
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Chapter 11 |
Business wishes to remain in operation and not be liquidated(reorganization of the debtors financial affairs undrr supervision of the bankruptcy court |
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Chapter 13 |
Adjustment only for individuals debt.Sole proprietorship can file. Owe less that 336,000; pay their debts to creditors in installment plans under the supervision of the court. If unsucessful can switch to chapter 7 and viceversa |
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Trustees |
Responsibility is to take assets from the bankruptcy estate, liquidate them and give compensation to the creditors |
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Discharge |
A written federal court order signed by a bankruptcy judge which states that the debtor is immune from creditor actions to collect debt(only individuals get discharge) |
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Bankruptcy abuse prevention and consumer act of 2005 |
Federal law that renovated the bankruptcy system by addressing the increased number of bankruptcy filing,loopholes and incentives that allowed abuse |
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Automatic stay |
Once a petition, voluntary or involuntary,is filed. During the stay, creditors cannot bring or continue legal action against the debtor or his property |
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Insured party |
Party who pays a premium in exchange for payment in the event of damage or injury |
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Beneficiary |
Person who receives insurance proceeds |
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Risk |
1) refers to potential loss 2) can be transfered and distributed |
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Premium |
A payment on a policy |
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Policyl |
A document that expresses agreement between the insured party,the benificiary,and the insurer |
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Insurable interest |
1)a property interest must exist at the time of the loss 2)a life interest must exit at the time the policy is obtained |
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Moral hazard |
Suggest that individuals who are insulated from risk sometimes behave differently; a person having car insurance might be careless by keeping the car unlocked knowing the insurance company covers theft |
