Ch. 9. Formation Of Traditional And E-Contracts

Front 1

contract

Back 1

a "promise or a set of promises for the breach of which the law gives a remedy, ort the performane of which the law in some way recognizes as a duty. Or simply an agreement that can be enforced in court.

Front 2

objective theory of contracts

Back 2

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 than by the party's own secret, subjective intentions.

Front 3

bilateral contract

Back 3

a contract in which an offeree can accept simply by promising to perform. No performance, such as payment of funds or delivery of goods, need take place for a bilateral contract to be formed.

Front 4

unilateral contract

Back 4

if the offer is phrased so that the offeree can accept the offer only by completing the contract performance.

Front 5

formal contracts

Back 5

are contracts that require a special form or method of creation to be enforceable, such as negotiable instruments. includes checks, drafts, promissory notes, bills of exchange .

Front 6

informal contracts

Back 6

a contract that does not require a specified form or formality in order to be valid.

Front 7

express contract

Back 7

in this contract the terms of the agreement are fully and explicitly stated in words, oral or written.

Front 8

implied contracts

Back 8

the conduct of the parties, rather than their words, creates and defines the terms of the contract.

Front 9

executed contract

Back 9

contract that has been fully performed on both sides

Front 10

executory contract

Back 10

contract that has not been fully performed by the parties

Front 11

valid contract

Back 11

has the elements necessary to entitle at least one of the parties to enforce it in court. Meets the 4 basic requirements.

Front 12

voidable contracts

Back 12

a valid contract but one that can be avoided at the option of one or both parties.

Front 13

unenforceable contracts

Back 13

is one that cannot be enforced because of certain legal defenses against it.

Front 14

void contract

Back 14

is no contract at all

Front 15

agreement

Back 15

the parties must agree on the terms of the contract and manifest their mutual assent to the same bargain. Ordinarally, agreement is evidenced by an offer and an acceptace.

Front 16

offer

Back 16

is a promise or commitment to do or refrain from doing some special action in the future.

3 elements must be present.

1) the offeror must have serious intention to become bound by the offer.

2) the terms of the offer must be reasonably certain, or definate, so that the parties and the court can ascertain the terms of the contract.

3) the offer must be communicated to the offeree.

Front 17

revocation

Back 17

the offeror's act of withdrawing an offer

Front 18

option contract

Back 18

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.

Front 19

counteroffer

Back 19

rejection of an old offer while simultaneously making a new offer.

Front 20

mirror image rule

Back 20

requires the offeree's acceptance to match the offeror's offer exactly- to mirror the offer.

Front 21

acceptance

Back 21

a voluntary act by the offeree that shows assent (agreement) to the terms of an offer.

Front 22

mailbox rule

Back 22

if the authorized mode of communication is the mail, then an acceptance becomes valid when it is dispatched (placed under control of the Postal Service)- not when it is received by the offerror.

Front 23

form selection clause

Back 23

online contracts contain one. It indicates the forum or location (such as a court or jurisdiction), in which contract disputes will be resolved.

Front 24

click-on agreement

Back 24

click on an "I agree" clause.

Front 25

shrink-wrap agreement

Back 25

agreement and terms are expressed inside the box.

Front 26

browse-wrap agreements

Back 26

like click-agree agreements that do not require a user to clicnk on agree to use or download.

Front 27

consideration

Back 27

the value (Such as cash) given in return for a promise or a specific action.

Front 28

forbearance

Back 28

refraining from an action that one has a legal right to undertake.

Front 29

bargained for exchange

Back 29

distinguishes a contract from a gift

Front 30

recission

Back 30

the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

Front 31

past-considerationj

Back 31

is no consideration

Front 32

covenant to compete

Back 32

employee agrees not to compete with the employer for a certain period of time after the employment relationship ends.

Front 33

contractual capacity

Back 33

the legal ability to enter into a contractual relationship.

Front 34

disaffirmance

Back 34

legal avoidance, or setting aside, of a contractual obligation

Front 35

usury

Back 35

charging more than the law states for interests

Front 36

unconsciounable

Back 36

contracts that are grossly unfair

Front 37

exculpatory clause

Back 37

release a party from liability in the event of a monetary or physical imnjury no matter what is at fault.

Front 38

statute of frauds

Back 38

stipulates what types of contracts must be in writing.

Front 39

privity of contract

Back 39

refers to the rights of the parties in a contract.

Front 40

assignment

Back 40

the transfer of rights to a third party

Front 41

delegation

Back 41

the transfer of contractual duties to a third party is known as delegation

Front 42

third party beneficiery

Back 42

a third person that benefits from a contract

Front 43

intended beneficiery

Back 43

a third party for whose benefit a contract is formed. An intended benfirciery can sue the promisor if such a contract is breached.