Chapter 12

Front 1

Definition of Contrct

Back 1

“a promise or a set of promises for the breachof which the law gives a remedy, or the performance of which the law in someway recognizes as a duty.”

OR

"a voluntary exchange of bargained-for legal detriment between competent parties supported by adequate offer, acceptance, and consideration"

Front 2

Meeting of the Minds

Back 2

two parties meet to chat and come to an agreement

Front 3

The Objective Theory of Contracts

Back 3

suggests that parties will be bound by terms that a reasonable (external) person would, by review of outward facts, statements and/or actions, conclude are the terms of the agreement.

Front 4

Bilateral Contracts

Back 4

Two promises

Thecontract is formed when the offeror and offeree exchange promises to each othersupported by agreement and consideration

Front 5

Unilateral Contracts

Back 5

Only one promise

The offeror phrases or submits the offer in a way that the offeree(s) may accept only by performance; a “promise for an act”. (ex. lost dog)

Front 6

Expressed Contract

Back 6

terms of agreement are set forth either in writing or orally.

Front 7

Implied Contract

Back 7

based on conduct of the parties (ex. when you go to a restaurant you expect food/drink in exchange for money.. classic implied contract at a restaurant)

Front 8

Elements of a Valid Contract

Back 8

1. Agreement

2. Consideration

3. Capacity

4. Legality

Front 9

The Mailbox Rule

Back 9

Acceptance valid from the moment offeree mails. Offeror is bound unless revocation isreceived by offeree prior to offeree’s mailing of acceptance

Front 10

Termination by Action of the Parties

Back 10

1. Revocation

2. Rejection

3. Counteroffer (offeree becomes new offeror)

Front 11

Mirror-Image Rule

Back 11

at CL, requires that offeree accepts exactly the same terms as offeror’s offer forthere to be a binding contract

Front 12

Termination by Operation of Law

Back 12

1. Lapse of time

2. Destruction of the specific subject matter of the offer

3. Death or incompetence of the offeror or offeree

4. Supervening illegality of proposed contract

Front 13

Consideration

Back 13

A promise to do something that one has no prior legal duty to do, performance of action one is otherwise not obligated to undertake, or forbearance of action that one otherwise has a right to undertake.

Front 14

Nominal Consideration

Back 14

not much of anything, minimal, but sufficient enough to do the job.

Front 15

Sham Consideration

Back 15

something that is exchanged that is clearly solely to provide an illusion of a contract but really no contract exists.

Front 16

Executed Contract

Back 16

fully performed by both sides

Front 17

Executory Contract

Back 17

at least one of the parties has not performed

Front 18

Unenforceable Contract

Back 18

contract that is not enforceable due to question of:
voluntary consent, form, adhesion/unconscionably, frustration of purpose, impossibility

Front 19

Voidable Contract

Back 19

gives a party an option to void contractual obligations or to ratify and follow through

Front 20

Void Contract

Back 20

actually never a contract by definition; it began life as unable to be one

Front 21

Urhahn Construction vs. Hopkins

Back 21

Agreed on a construction job. Price included cinder blocks (standard procedure), but decided to use durisol blocks instead (more expensive). Billed homeowner the difference, they said no because there was no contract. Construction company wins because implied contract, a reasonable person would agree that you have to pay more for more expensive material.