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31 Cards in this Set
- Front
- Back
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What six elements must a contract have to be binding?
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1. Offer - must be genuine
2. Acceptance 3. Mutual Intent 4. Consideration 5. Capacity to Contracts 6. Lawful Purpose |
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True or False?
All contracts are based on agreement of one kind or another. |
True.
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True or False?
All agreements are contracts. |
False
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Fill in the blanks:
A legally enforceable contract is a _________ ____________, not necessarily in __________, between two or more _________ parties which is supported by mutual __________ to do some ______ act __________. |
Deliberate agreement; writing; competent; consideration; legal; voluntarily
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"Agreement equals _______ PLUS ____________."
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offer, acceptance
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What is an offer?
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Made in words, writing or implied by offerer's conduct. Must have serious intention. Words must constitute a positive offer. Must be genuine.
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True or False?
Price tags, price lists, catalogues, and media ads are all examples of offers. |
False, they are merely invitations to make offers.
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What word is often used to mean any simple contract?
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Parol
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When does a contract come into existence?
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When one person proposes a contract which is accepted by another person.
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True or False?
The offer must be communicated to the person or a class or person for whom it was intended. |
True
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An offer was delivered to the wrong person who received it by mistake. Can this person act upon it?
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No.
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Peter said to Joe, "I'm thinking about selling my car." Does this constitute an offer?
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No, an offer must be definite.
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True or False?
Advertisements in newspapers are not offers. |
True.
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What are 3 rules which apply if the offeree wishes to accept an offer?
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1. Acceptance must be made in the manner and time stipulated in the offer.
2. Must be communicated to the offeror. 3. Must be unconditional. |
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True or False?
The offeree cannot try to accept and change the terms of the offer at the same time. |
True.
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If the offeree tries to change the offer, he is deemed by law to have done what two things?
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1. Refused the offer
2. Made a counter offer. |
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When may the offeror revoke his/her offer?
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1. if the offeror dies before acceptance
2. counter offer is made 3. time stipulation expires before acceptance is made |
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What are the 3 terms to describe the correctness of a contract?
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1. Valid
2. Void 3. Voidable |
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An agreement is binding even if the exact instructions for method of acceptance are given and not followed exactly.
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False.
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If the offeror gives exact instructions as to the method of acceptance, the mode of acceptance becomes his....what?
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Explicit agent
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True or False?
An acceptance is firm the moment the offeree gives the acceptance to the agent. |
True.
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True or False?
If method of acceptance is not given by offeror, then the offeree has a choice of modes of returning the acceptance. |
True.
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If the offeree choose the same mode by which the offer came, he is said to be using the offeror's what?
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Implied agent
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What is consideration?
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A symbol of serious intention of both parties to enter into an agreement. Its normally a thing of value or a promise of something of value.
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True or False?
Consideration can be a past act. |
False.
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Can a subcontractor be paid twice for doing the same act, for which he asked to perform the same job by both the owner and general contractor?
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No, not legally.
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True or False?
Consideration from each side must be of equal value. |
False.
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What types of contracts must be in writing, according to The Statute of Frauds (1677)?
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- Sale of land or any interest concerning land.
- wills, guarantees - contracts not complete within 1 year |
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Common law decisions established this due to the arising disputes over verbal agreements for sale of land.
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Doctrine of Part Performance
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When does the sale of goods need to be in writing, according to the Sale of Goods Act.
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Over $50
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Is the price tag on a bottle of pop an offer?
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No.
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