Chapter 11 Law Definitions

Front 1

Bilateral contract

Back 1

-a promise for a promise

-comes into existence at the moment the promises are exchanged

Front 2

Contract

Back 2

is a promise or a set of promises for the breach of which the law gives a remedy, or performance of which the law in some way recognizes as a duty. (simply put- is an agreement that can be enforced in court).

Front 3

Executed Contract

Back 3

A contract that has been fully performed on both sides

Front 4

Executory contract

Back 4

A contract that has not been fully performed by the parties

Front 5

Express Contract

Back 5

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

Front 6

Extrinsic evidence

Back 6

is any evidence not contained in the document itself - such as the testimony of parties and witnesses, additional agreements or communications, or other relevant information

Front 7

Formal contract

Back 7

are contracts that require a special form or method of creation (formation) to be enforceable

Front 8

Implied contract

Back 8

-a contract that is implied from the conduct

-differs from an express contract in that the conduct of the parties, rather than their words, creates and defines the terms of the contract

Front 9

informal contract

Back 9

-also called simple contracts

-include all other (than formal) contracts

-no special form is required (except for certain types of contracts that must be in writing), as the contracts are usually based on their substance rather than their form

Front 10

Objective theory of contracts

Back 10

In determining whether a contract has been formed, the element of intent is of prime importance. intent is determined by the objective theory of contracts

Front 11

Objective facts may include:

Back 11

1. what the party said when entering into the contract

2. how the party acted or appeared (intent may be manifested by conduct as well as by oral or written words).

3. The circumstances surrounding the transaction.

Front 12

offeree

Back 12

is the party whom the offer is made

Front 13

offeror

Back 13

is the party making the offer

Front 14

promise

Back 14

is a declaration by a person (the promisor) to do or not to do a certain act.

Front 15

promisor

Back 15

person making the promise

Front 16

Promisee

Back 16

the person to whom the promise is made

Front 17

quantum meruit

Back 17

-when the court imposes a quasi contract, a plaintiff may recover this

- a Latin phrase meaning "as much as he or she deserves."

-essentially describes the extent of compensation owed under a contract implied in law

Front 18

quasi contract

Back 18

-or, contracts implied in law

-are not actual contracts

-Latin for "as if"

-they do not arise from any agreement, express or implied, between the parties themselves

-are fictional contracts that courts can impose on the parties "as if" the parties had entered into an actual contract.

-are equitable rather than legal contracts

Front 19

unenforceable contract

Back 19

-is a contract that cannot be enforced because of certain legal defenses against it

-not unenforceable because a party failed to satisfy a legal requirement, but rendered unenforceable by law

-for example, certain contracts must be in writing, if not, they are not enforceable (under certain circumstances)

Front 20

unilateral contract

Back 20

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

-"a promise for an act"

Front 21

valid contract

Back 21

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

Front 22

Valid contract elements

Back 22

1. an agreement (offer acceptance)

2. supported by legally sufficient consideration

3. made by parties who have legal capacity to enter into a contract

4. a legal purpose

Front 23

Voidable Contract

Back 23

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

Front 24

Void contract

Back 24

is no contract at all

-[illegal contracts, mentally incompetent]

-no parties have an legal obligations