Chapter 4 - Contract Law Terms

Front 1

Expressed Contract

Back 1

Both parties agree to terms via language, written or oral

Hint 1

Ex. signed lease

Front 2

Implied Contract (Implied in Fact Contract)

Back 2

Contract that becomes valid upon actions or conduct of the parties involved

Hint 2

Ex. barber chair, getting gas

Front 3

Quasi Contract (Implied in Law Contract)

Back 3

A missing element necessary to contract is filled by judge to stop unjust enrichment by one party

Hint 3

Ex. yard work without permit
-rare

Front 4

Conditional Contract

Back 4

Duty to perform obligations under contract is based upon a condition being met within contract

Hint 4

3 Types:
-conditional subsequent
-conditional precedent
-conditional concurrent

Front 5

Conditional Precedent

Back 5

An event must occur prior to contractual obligation for parties involved

Hint 5

Ex. "If you sleep with me, I'll give you this test for $10"

Front 6

Conditional Concurrent

Back 6

One party's requirement to perform is based on the other party's requirement to perform as well

Hint 6

Ex. "If you sleep with me, I'll give you this test for $10 and if you get an A you have to pay me $10 more"

Front 7

Conditional Subsequent

Back 7

An event terminates a contract if the event occurs or contract can go into effect if it does occur

Hint 7

Ex."If you sleep with me, you can get this test"

Front 8

Unconditional Contract

Back 8

No added conditions necessary for contract to be valid, must perform under contract

Hint 8

Ex. "I'll sell you this car for $10"

Front 9

Offeror/Promisor

Back 9

The person that is making either the offer or promise to another party

Front 10

Oferee/Promisee

Back 10

The person to whom an offer or promise is being made

Front 11

Bilateral Contract

Back 11

Contract that occurs when a promise is made in return for a promise by another party

Hint 11

-Mutual exchange of promise
-promise for promise

Front 12

Unilateral Contract

Back 12

Contract that occurs when a promise is made by one party and the performance is made by another

Hint 12

- One promisor
- oferee/promisee acccepts contract by performance

Front 13

Executory Contract

Back 13

Contract to which neither party has performed the obligations under said contract

Hint 13

-not fully performed by either party

Front 14

Executed Contract

Back 14

Both parties to a contract have fulfilled obligations arising from contract

Hint 14

-contract has been fully performed by all parties

Front 15

Partially Executed Contract

Back 15

Contract obligations have been filled by one party but not by the other

Hint 15

- executory contract

Front 16

Valid Contract

Back 16

All elements necessary to a contract exist and both parties are under legal obligation to the other

Hint 16

Elements:
1. Agreement
2. Consideration
3. Capacity
4. Legality
5.Genuine and Real Assent

Front 17

Void Contract

Back 17

Neither party is obligated to contract and cannot be enforced by law, carries no obligation by either party

Hint 17

ex. adjudicated insane, illegal contract

Front 18

Voidable Contract

Back 18

Valid contact in which one of the parties can avoid obligations without incurring legal liability

Hint 18

ex. contract with minor

Front 19

Unenforceable Contract

Back 19

Previously valid contract which cirumstances have changed to make it no longer enforceable under the law

Hint 19

ex. death, insanity, change of law

Front 20

Revocation

Back 20

Offer is terminated prior to being legally accepted by the offeree

Hint 20

ex. take back offer before offeree replies

Front 21

Rejection

Back 21

Offer is terminated by the offeree by simply not agreeing to the terms made by the offeror

Hint 21

ex. canceled by offeree by saying no

Front 22

Counteroffer

Back 22

Offer made after rejection which exchanges places between the parties, all previous offers are eliminated

Front 23

Consideration

Back 23

Idea that something of value is bargained for and exchanged between parties for another promise

Hint 23

Ex. when you exchange work for money
-Legal detriment for
-Legal benefit

Front 24

Legal Detriment

Back 24

An act, promise to act, pr refraining from an act, which not legally obligated to do

Hint 24

ex. Vicky agrees get paid by her dad if she doesn't drink, or smoke.

Front 25

Legal Benefit

Back 25

The legal right acquired by promise due to promisee's legal detriment

Hint 25

ex. Satisfaction Dad receives when daughter doesn't drink or smoke because he paid her not too

Front 26

Illusory Promise

Back 26

Promise made that is considered by the courts as having no commitment since party will likely not rely on it

Hint 26

ex. "If you bring a lot of cans, I will curve your test"

Front 27

Promissory Estoppel (Detrimental Reliance)

Back 27

If average person would rely on a promise it could serve as consideration to a contract due to loss

Hint 27

Hard to prove

Front 28

Capacity

Back 28

The ability to understand the nature and consequences of your actions when entering a contract

Hint 28

ex. minors, intoxicated people, insane people

Front 29

Ratification

Back 29

When a party agrees to terms of contract made by third party after full disclosure of all pertinent facts

Hint 29

can be by words or actions

Front 30

Disaffirmance

Back 30

When someone who has the right to leave a contact without obligation does so through words or actions

Hint 30

ex. minor in voidable contract

Front 31

Genuine and Real Assent

Back 31

The ability to voluntarily enter into a contact under your own free woll

Hint 31

ex. Mistake, Fraud, Duress, Undue Influence

Front 32

Duress

Back 32

The use of a threat or force to make someone enter into a contact against his/her will

Hint 32

ex. "Sign contract or I'll shoot you"

Front 33

Undue Influence

Back 33

Ability of a person to take control over another person, and to substitute their will for that of the other person

Hint 33

ex. "Send me your money and I will make sure you go to heaven"

Front 34

Parole Evidence Rule

Back 34

Prior statements made cannot vary the terms of a written contract... written contract prevails

Hint 34

Oral then written= only written contract applies

Front 35

Statute of Frauds

Back 35

Some contracts in order to be enforceable must be in the expressed WRITTEN form to be valid

Hint 35

contract must be in writing if over 1 year

Front 36

Recission

Back 36

Where both parties agree to terminate contract without performance from either

Hint 36

also called restitution, discharge by agreement
Equitable remedy

Front 37

Novation

Back 37

Parties agree to substitute one party for that of another within contract

Hint 37

ex. "Doug can't mow, but his friend Bill can", discharge by agreement

Front 38

Accord and Satisfaction

Back 38

Parties agree to change conditions of the contract in terms of performace

Hint 38

discharge by agreement

Front 39

Subjective Impossibility

Back 39

Where one party says they cant do the contract, does not allow them out of their obligations

Hint 39

ex. "I cant do it"
possibly damages

Front 40

Objective Impossibility

Back 40

Where one party says that the job cannot be performed, obligations are eliminated

Hint 40

ex. "It can't be done"
- party dies
- subject matter destroyed
- becomes illegal
- becomes commercially impractical

Front 41

Repudiation

Back 41

Where only one party prior to performance tells other they will not perform, innocent party can recover damages

Front 42

Compensatory Damages

Back 42

Damages awarded as a result of actions associated to a breach by other party to contract

Front 43

Consequential Damages

Back 43

Damages that flow as a result of breach, also called forseeable or special damages

Front 44

Liquidated Damages

Back 44

Damages are so forseeable they are written into a contract, usually construction contracts

Front 45

Reformation

Back 45

Correct unintentional problems to a contract such as typos or small illegalities

Hint 45

Equitable Remedy