Business Law Ch 9 - 15

Front 1

Contract

Back 1

Legally enforceable promise or set of promises

Front 2

Sale of Goods

Back 2

A bill of sale transfers ownership of an asset from a seller to the buyer

Front 3

Merchant

Back 3

A person who regularly deals in the kind of goods being sold

Front 4

Unenforceable Contract

Back 4

A contract that meets the basic requirements of a contract but is not enforceable due to some other legal rule.

Front 5

Voidable Contract

Back 5

A contract that may be canceled by one or both parties. (Also is enforceable)

Front 6

Void Contract

Back 6

A contract that lacks one or more of the basic requirements for a contract

Front 7

Unilateral Contract

Back 7

Only one of the parties makes a promise and the other preforms an act in exchange for that promise

Front 8

Bilateral Contract

Back 8

Both parties make a promise

Front 9

Executed

Back 9

When all parties have preformed their duties under the contract

Front 10

Executory

Back 10

When the promises have not been fully preformed

Front 11

Express Contract

Back 11

The parties directly stated the contract terms at the time the contract was formed

Front 12

Implied Contract

Back 12

When surrounding facts and circumstances indicate that an agreement has been reached.

Front 13

Quasi Contract

Back 13

Legal fiction created by the court to avoid injustice. Requires the defendant to act as if he had promised to pay for the benefit he voluntarily received.

Front 14

Promissory Estoppel

Back 14

If a party changes his position substantially either by acting or not acting in reliance upon a promise, then that party can enforce the promise even if it doesn't have all the elements of a contract

Front 15

Agreement

Back 15

"Meeting of the minds"

Front 16

Offer

Back 16

The manifestation of a willingness to enter into a contract if the other person agrees to the terms

Front 17

Acceptance

Back 17

When the offeree states that they are wiling to enter into a binding contract on the terms of the offer

Front 18

Definiteness

Back 18

That the offeror specifically indicated what he was willing to do and what he wanted the offeree to do or agree to do in return

Front 19

Firm Offer

Back 19

An offer that is irrevocable even though the offeree has given no consideration to support the offeror's promise to hold the offer open (the offeror can revoke at any time prior to acceptance)

Front 20

Option

Back 20

A separate contract for the limited purpose of holding the offer open

Front 21

Counteroffer

Back 21

Any attempt by the offeree to change the material terms or add significant new terms to the offer

Front 22

Authorized Means

Back 22

Means of communication authorized by the offeror that the offeree has permission to use to accept the offer (effective when mailed)

Front 23

Stipulated Means

Back 23

Means of communication stipulated as the way the acceptance must be sent (effective when dispatched)

Front 24

Nonauthorized Means

Back 24

Acceptance using nonauthorized means is not effective until it is received by the offeror

Front 25

Promisor

Back 25

Person who made a promise

Front 26

Promisee

Back 26

Person whom a promise was made to

Front 27

Legal Value

Back 27

Usefulness of a document or record as a legal proof of authority or business transaction, enforceable rights or obligations, or as the basis for a legal action

Front 28

Nominal Consideration

Back 28

Some benefit that bears little or no relation to the real value of an agreement, contract, job, or position

Front 29

Equitable Remedies

Back 29

Actions that the court prescribes which will serve to resolve the breach or dispute

Front 30

Contractual

Back 30

Any provision forming part of a contract

Front 31

Unforeseeable Difficulties

Back 31

Difficulties that make the contracting party's performance impossible or highly impracticable

Front 32

Liquidated Debt

Back 32

Situation where the existence and amount of debt is not disputed, or where the debt is discharged without dispute

Front 33

Unliquidated Debt

Back 33

A liability for which the exact amount owed is unable to be ascertained from reviewing the agreed upon contractual terms or that remains in dispute

Front 34

Accord and Satasifaction

Back 34

Settling a disputed claim with the purchase of the release from a debt obligation

Front 35

Composition Agreements

Back 35

Agreements between a debtor and two or ore creditors who agree to accept a stated percentage of their liquidated claims against the debtor at or after the due date

Front 36

Moral Obligations

Back 36

A duty which one owes, and which he ought to perform, but which he is not legally bound to fulfill

Front 37

Illusory Promise

Back 37

A statement that appears to assure a performance and form a contract, but when scrutinized, leaves only the choice of performance or non preformance

Front 38

Capacity

Back 38

The ability of a person to do a legally valid act

Front 39

Disaffirm

Back 39

Cancel

Front 40

Ratified

Back 40

to confirm by expressing consent, approval, or formal sanction

Front 41

Emancipation

Back 41

The termination of a parent's right to receive services and wages from a child and to generally control him.

Front 42

Rescind

Back 42

Cancel

Front 43

Misrepresentation

Back 43

Misrepresentation of a material fact justifiably relied on to the detriment of the person relying

Front 44

Fraud

Back 44

Intentional misrepresentation

Front 45

Scienter

Back 45

The mental state of the defendant who has the intent or knowledge of wrongdoing

Front 46

Duress

Back 46

Threats, violence, constraints, or other action brought to bear on someone to do something against their will or better judgment

Front 47

Undue Influence

Back 47

Influence by which a person is induced to act otherwise than by their own free will or without adequate attention to the consequences

Front 48

Mistake

Back 48

An erroneous belief, at contracting, that certain facts are true

Front 49

Usury Laws

Back 49

Prohibits charging more than a stated amount of interest for the use of money

Front 50

Revenue-Raising Statutes

Back 50

A licensing statute with the primary purpose of raising revenue for the government

Front 51

Sunday Laws (Blue Laws)

Back 51

Prohibit the performance of certain work and the transaction of certain business on Sunday

Front 52

Fiduciary

Back 52

A person in a position of trust or confidence like a trustee, agent, or partner

Front 53

Exculpatory Clause

Back 53

A provision in a contract that attempts to relieve one party to the contract from liability for the consequences of his own negligence

Front 54

Unconscionable Contracts

Back 54

A contract with terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining power, that they are contrary to good conscience

Front 55

Contracts of Adhesion

Back 55

Contracts with a "take it or leave it" basis, and give one party no ability to negotiate because of their unequal bargaining position