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43 Cards in this Set

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bilateral contract
A type of contract that arises when a promise is given in exchange for a return promise.
contract
An agreement that can be enforced in court; formed by two or more competent parties who agree, for consideration, to perform or to refrain from performing some legal act now or in the future.
executed contract
A contract that has been completely performed by both parties. Ex: In real estate I pay and you give me the house
executory contract
A contract that has not as yet been fully performed. At least one of the parties has not performed.
express contract
A contract in which the terms of the agreement are stated in words, oral or written.
formal contract
A contract that by law requires a specific form, such as being executed under seal, for its validity.
implied-in-fact contract
A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).
objective theory of contracts
A theory under which the intent to form a contract will be judged by outward, objective facts (what the party said when entering into the contract, how the party acted or appeared, and the circumstances surrounding the transaction) as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions.
offeree
A person to whom an offer is made.
offeror
A person who makes an offer
promise
An assertion that something either will or will not happen in the future. A promise to do something or not to do something in the future.
promisee
A person to whom a promise is made.
promisor
A person who makes a promise.
quasi contract
A fictional contract imposed on parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another. No contract exists. Ex: Person unconscious--> used $250 of medical supplies
unenforceable contract
A valid contract rendered unenforceable by some statute or law.
unilateral contract
A contract that results when an offer can be accepted only by the offeree’s performance.
valid contract
A contract that results when the elements necessary for contract formation (agreement, consideration, legal purpose, and contractual capacity) are present. Valid contracts may be enforceable, voidable (a party may elect to void or ratify), or unenforceable (wasnt in writting).
void contract
A contract having no legal force or binding effect. No contract
voidable contract
contract that may be legally avoided (canceled, or annulled) at the option of one or both of the parties
What is the definition of a contract
1. Agreement offer and acceptance
2. Consideration
3. Contractual capacity
4. Legality
Agreement
An agreement includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept it
Consideration
Promises must be supported by legally sufficient and bargained-for consideration. (something of value received or promised, to convince a person to make a deal)
Contractual Capacity
This concerns characteristics that qualify the parties to a contract as competent. the 2 parties must have contractual capacity to enter a contract. The law must recognize them as possessing characteristics that qualify them as competent parties. Ex: In the U.S. we look out for parties like the elderly. Ex: Adults taking advantage of minors getting into contract
Legality
A contract's purpose must be to accomplish a goal that is not against public policy. Contract has to be legal. Ex: No contract with illegal acts like dog fighting (illegal) therefore contract not legal
Defenses to a contract
1. Genuineness of Assent
2. Form
Genuineness of Assent
The apparent consent of both parties must be genuine
-Objective Theory
Form
A contract must be in whatever form the law requires (some contracts must be in writing)
Each category of contracts signifies a legal distinction regarding what in a contract?
1. Contracts formation
2. Performance
3. Enforceabiliy
Bilateral Contracts
The exchange of mutual promises. This is a promise for a promise. To accept the offer, the offeree need only promise to perform. Offers are normally revocable until accepted. Ex: If I pay you $1000 if you promise to paint my fense and both you all agree then you can sue for breech of contract
Unilateral Contract
Offer requests performance. No promise. Ex: If you paint my fence I will give you $1000. Asking you to do something and not to agree/promise. Cause the person d/n promise/agree you cannot be sued for breech of contract. This is a promise for an act.
How does a problem arise in a Unilateral Contract
When the promisor attempts to revoke the offer after the promisee has begun performance but before the act has been completed
How can a Unilateral Contract be irrevocable?
Offer is irrevocable once performance has been substantially undertaken
Unilateral Contract Examples
1. If you drive my car from Chicago to Boulder then I will give you 1000 on completion. If the person does not accept the offer there is no legal consequences.
2. Contets, lotteries, and other competitions offering prizes are also examples if a person complies with the rules of the contest
3. Policy Academy example... the plaintiffs had accepted by passing the required medical and psychological examinations and they won
Revocable Bilateral Contracts
Offers are normally revocable until accepted
Types of Contracts
1. Bilateral
2. Unilateral
3. Formal
4. Informal
5. Express
6. Implied in fact
Formal Contract
requires a specific form, such as being executed under seal for its validity.
Ex: Check paid to the order of
What do formal contracts include?
1. Contracts under seal
2. recognizances: is an acknowledgment in court by a person that he or she will perform some specified obligation or pay a certain sum if he or she fails to perform Ex: Surety bond or a personal recognizance bond
3. negotiable instruments: Include checks, notes, drafts, and certificates of deposit
4. Letters of credit
Contract Performance
Contracts are also classified according to their state of performance
1. Executed Contract
2. Executory Contract
Executed Contract vs. Executory Contract
Ex: Will drives car to chicago and I don't pay
Will: executor
I: executory
What do Quasi Contracts not arise from?
They do not arise from any agreement, express or implied, between parties themselves.
Quasi Contracts are imposed to avoid?
Unjust enrichment: based on the theory that individuals should not be allowed to profit or enrich themselves inequitably at the expense of others
Quasi Contract examples
1. Medical aid $ is owed to a doctor who saves a unconcious persons life because of it
2. Lessee does renivations to his apartment and tries to leave the costs to the lessor and the lessee is wrong--> No quasi Contract because it is qualified as "unjust enrichment"
What contracts arent actual contracts
Implied-in-law and Quasi because they are imposed on parties by courts