Business Law Chapter 9

Front 1

Legally Enforceable contract

Back 1

A contract in which if one party fails to perform as promised, the other party can use the court system to enforce the contract and recover damages or other remedy.

Front 2

Contract

Back 2

An agreement that is enforceable by a court of law.

Front 3

Offeror

Back 3

the party who makes an offer to enter into a contract.

Front 4

Offeree

Back 4

The party to whom an offer to enter into a contract is made

Front 5

Elements of a contract.

Back 5

1. agreement.
2. consideration.
3. contractual capacity
4. lawful object.

Front 6

Agreement

Back 6

To have an enforceable contract there must be an agreement bewtween the parties. This requires an offer by the offeror and acceptance by offerree. Mutual acceptance is required.

Front 7

Consideration

Back 7

Must be supported by a bargained for consideration that is legally sufficient. Money, personal property, real property, provision of services and such qualify as consideration.

Front 8

Contractual capacity

Back 8

The parties must have contractual capacity for the contract to be enforced against them. Contracts cannot be enforced against parties who lack contractual capacity when they entered ino a contract.

Front 9

Lawful object

Back 9

The object of the contract must be lawful. If they have an illegal object they are void and will not be enforced.

Front 10

Two defenses raised to the enforcement of a contract

Back 10

1. Guineness of assent- The contract parties to create a contract must be genuine. If the consent is obtained by duress, undue influence, or fraud, there is no real consent.
2. Writing and form.--The law requqires that certain contracs be in writing or another form. If the contract fails to be in proper form then this may be unenforceable.

Front 11

Common law of contracts

Back 11

contract law developed primarily by state courts.

Front 12

Uniform Commercial Code

Back 12

A comprehensive statutory scheme which includes laws that cover aspects of commercial transactions.

Front 13

Restatements of the law of contracts

Back 13

A compilation of model contract law principles drafted by legal scholars. The restatement is not lawe howvever, judges and lawyers often refer to it for guidance.

Front 14

Objective theory of contracts

Back 14

A theory that says the intent to contract is judged by the reasonable person standar and not by the subjective intent of the parties. Would a hypothetical reasonable person cnclude that parties intended to contract after considering the conduct of the parties and the circumstance

Front 15

Uniform computer information transactions act

Back 15

A model act that estabilished uniform legal rules for the formation and enforcement of electronic contracts and lisences.

Front 16

bilateral contract

Back 16

A contract entered into by way of exchange of promises of the parties. A promise for a promise. No act of performance is necessary to create a bilateral contract.

Front 17

unilateral contract

Back 17

A contract in which the offeror's offer can be accepted only by performance of an act by the offeree; a promise for an act. Example if you will paint my house i will pay you 500. well you only get the money if you perform the act.

Front 18

Formal contract

Back 18

A contract that requires a special form or method of creation. Examples:
Negtiable instruemtns such as chekcs, drafts, notes.
Letters of Credit: Agreement by the issuer of a letter to pay a certain amount.
Recognizance: party acknowledges that she will pay a specific amount of money if an event occurs.
Contracts under seal: contracts under a wax seal.

Front 19

informal contract

Back 19

A contract that is not formal. Valid informal contracts are fully enforceable and may be sued if breached.

Front 20

Valid contract

Back 20

A contract that meets all the essential elements to establish a contract; a contract that is enforceable by at least one of the parties. in otherwise it has agreement, consideration, lawful object, and parties have the capacity to contract.

Front 21

Void contract

Back 21

A contract that has no legal effect; a nullity. It is as if no contract has ever been created. Neither party can enforce it and neither is obligated to perform on it.

Front 22

Voidable contract

Back 22

A contract in which one or both parties have the option to avoid their contractual obligations. If a contract is avoided, both parties are released from their contractual obligations.

Front 23

Unenforceable contract

Back 23

A contract in which the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract.

Front 24

Executed contract

Back 24

A contract that has been fully performed on both sides; a completed contract.

Front 25

Executory contract

Back 25

A contract that has not been fully performed by either or both sides.

Front 26

Express contract

Back 26

An agreement that is expressed in written or oral words.

Front 27

Implied in fact contract

Back 27

A contract in which an agreemenet between parties has been inferred from their conduct. in order to have this: 1. the plaintiff provided property or services to defendant, 2. the plaintiff expected to be paid by defendant for service and did not provide it gratuitously. 3. defendant was given an opportunity to reject service and chose not to.

Front 28

implied in law contract (quasi contract)

Back 28

An equitable docrtine whereby a court may award monetary damage to a plaintiff for providing work or services to a defendant even though no actual contract existed. The doctrine is intended to prevent unjust enrichment and unjust detriment. Example Heather is involved in accident knocked unconscious rushed to hospital where doctors save her. She is released. Hospital charges Heather for their services. The charge is reasonable. Heather is responsible.

Front 29

Equity

Back 29

A doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law.

Front 30

What conditions are necessary for a quasi contract?

Back 30

1. When one person confers a benefit on another, who retains the benefit.
2. It would be unjust not to require that person to pay for benefit received.