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17 Cards in this Set
- Front
- Back
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Contract elements |
Four elements of an enforceable contract: 1) competent parties 2) a legal object of purpose 3) an agreement between parties 4) consideration |
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CLOC - elements of a contract |
C - Competent parties L - Legal object O - Offer & Acceptance C - Consideration |
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Voidable Contract |
all the elements to create a contract, but is subject to rescission by one of the parties; It is legal, but can be made void by: - was a minor - was misled - did not agree voluntarily - later found to have lacked competency |
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Void Contract |
Not a contract at all - no effect in law |
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Unenforceable Contract |
a contract valid at the time it was made, but no longer enforceable because: - all copies were destroyed or missing - implied or oral and there is no proof - failed to take action within statute of limitations - laches: due to neglect or undue delay in bringing about a claim |
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Capacity to Contract |
each party to a contract must be legally competent to have an enforceable contract |
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Corporate Resolution |
document defining specific persons that can legally sign for a corporation |
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Offer and Acceptance |
an enforceable contract must have an offer from one party and acceptance by another - it can be implied |
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Express Contract |
a contract created in words, either written or oral |
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Implied Contract |
a contract as a result of actions (ie if a written leas expires, the tenant continues to pay rent and the landlord accepts the payments they would have an implied contract) |
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Statute of Frauds |
certain agreements are invalid and unenforceable unless the agreement is written and signed |
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Parol Evidence Rule |
in some states, spoken words (parol evidence) cannot be used in court to change, modify, or contradict terms of a written contract |
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Misrepresentation |
a false statement of a material fact can void a contract |
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Legality of Object |
an enforceable contract must have a legal object or legal purpose |
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Adequate Consideration |
an enforceable contract must have consideration - value given by one party in exchange for value from another party |
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Unilateral Contract |
Only one party has an obligation to perform under the contract |
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Bilateral Contract |
each party makes a promise; a promise is exchanged for another promise and both parties are obligated to perform |
