Contractual Law

Front 1

bilateral contract

Back 1

a promise for a promise

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voidable

Back 2

a contract that a party has the option of avoiding or enforcing

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executed contract

Back 3

a fully performed contract

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executory contract

Back 4

a contract not fully performed

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express contract

Back 5

formed by words(oral, written, or a combination)

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formal contract

Back 6

requires a special form for contract information

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implied-in-fact contract

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formed at least in part by conduct of the parties

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informal contract

Back 8

requires no special form for contract information

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void

Back 9

no contract exists, or there is a contract without legal obligations

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valid

Back 10

a contract that has the neccessary contractual elements of offer and acceptance consideration, parties with legal capacity, and a legal purpose

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unenforcable contract

Back 11

a valid contract that cannot be enforced because of a legal defense

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unilateral contract

Back 12

a promise for an act

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quasi contract

Back 13

a contract implied in law, is a contract that is imposed by law to prevent unjust enrichment

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contract

Back 14

an agreement that can be enforced in court

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requirements of a valid contract

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1. agreement
2. consideration
3. contractual capacity
4. legality

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offeree

Back 16

the party to whom the offer is made

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offeror

Back 17

party making the offer

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promise

Back 18

an assertion that something either will or will not happen in the future

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promisee

Back 19

the promise to whom the promise is made

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promisor

Back 20

the person making the promise

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agreement

Back 21

the parties must agree on the terms of the contract

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offer

Back 22

a promise or commitment to perform or refrain from performing some specified act in the future

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revocation

Back 23

the offeror's act of withdrawing an offer

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option contract

Back 24

created when an offeror promises to hold an offer open for a specified period of time in return for payment(consideration) given by the offeree

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counteroffer

Back 25

a rejection of the original offer and the simultaneous making of a new offer

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mirror image rule

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requires that the offeree's acceptance match the offeror's offer exactly

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acceptance

Back 27

a voluntary act by the offeree that shows assent, or agreement to the terms of an offer

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mailbox rule

Back 28

acceptance takes effect at the time the offeree sends or delivers the communication via the mode expressly or impliedly authorized by the offeror

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consideration

Back 29

usually defined as the value given in return for a promise

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forbearance

Back 30

Voluntarily refraining from doing something, such as asserting a legal right. For example, a creditor may forbear on its right to collect a debt by temporarily postponing or reducing the borrower’s payments.

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accord and satisfaction

Back 31

a debtor offers to pay, and a creditor accepts, a lessor amount than the creditor originally claimed was owed

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liquidated debt

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a debt is liquidated if its amount has been ascertained, fixed, agreed on, settled or exactly determined

Hint 32

if the debt is liquidated accord and satisfaction cannot take place

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release

Back 33

a contract in which one party forfeits the right to pursue a legal claim against the other party

Hint 33

releases will generally be binding if they are :
1. given in good faith
2. stated in a signed writing
3. accompanied by consideration

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covenant not to sue

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the parties simply substitute a contractual obligation for some other type of legal actoin based on a valid claim

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promissory estoppel

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a person who has reasonably relied on the promise of another can often obtain some measure of recovery

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estopped

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barred or impeded from revoking. but there must be a clear and definite promise, the promisee must justifiably rely on the promise and the reliance normally must be of a substantial and definite characted

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past consideration

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actions or events that have already taken place do not constitute legally sufficient consideration

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rescission

Back 38

a remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made

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contractual capacity

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the legal ability to enter into a contractual relationship

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emancipation

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occurs whena child's parent or legal guardian relinquishes the legal right to exercise control over the child

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disaffirmance

Back 41

the legal avoidance, or setting aside, of a contractual obligation

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necessaries

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basic needs

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ratifaction

Back 43

the act of accepting and giving legal force to an obligation that previously was not enforced

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blue laws

Back 44

laws that prohibit the formation or performance of certain contracts on sundays

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employment contract

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a contract stating the terms and conditions of employment

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reformation

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a court ordered correction of a written contract so that it reflects the true intentions of the parties

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unconscionable contract

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a contract or clause that is void on the basis of public policy because one party, as a result of disproportionate bargaining power, is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party

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adhesion contracts

Back 48

a standard form contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms

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exculpatory clauses

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clauses that release a party from a liability in the even of monetary or physical injury no matter who is at fault

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blue sky laws

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state laws that regulate the offering and sale of securities for the protection of the public

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usury

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occurs when a lender makes a loan at an interest rate above the lawful maximum

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bilateral mistakes

Back 52

when both parties are mistaken about the same material fact

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unilateral mistakes

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when only one party is mistaken as to a material fact

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scienter

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guilty knowledge

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duress

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forcing a party to enter into a contract because of the fear created by threats

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collateral promise

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a secondary promise that is one ancillary to a principal transaction or primary contractual relationship

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prenuptial agreements

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agreements made before marriage

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parol evidence rule

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if a court finds that a written contract represents the complete and final statement of the parties agreement

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privity of contract

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private agreement

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assignment

Back 60

the transfer of contract rights to a third person

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assignor

Back 61

assigning the rights to a third party

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assignee

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the party receiving the rights

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obligee

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the person to whom a duty or obligation is owed

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obligor

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the person who is obligated to perform the duty

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alienation

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the voluntary transfer of land ownership

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delegation of duties

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does not relieve the party making the delegation of the obligation to perform in the event that the party to whom the duty has been delegated fails to perform

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conditions precedent

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a condition that must be fulfilled before a party's promise becomes absolute

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conditions subsequent

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when a condition operates to terminate a party's absolute promise to promise

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tender

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an unconditional offer to perform by a person who is ready, willing and able to do so

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anticipation repudiation

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before either party to a contract has a duty to perform, one of the parties may refuse to perform her or his contractual obligations

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novation

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1. the existence of a previous, valid obligation
2. agreement by all parties to a new contract
3. the extinguishing of the old obligation
4. a valid new contract

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compensatory damages

Back 72

damages that compensate the nonbreaching party for injuries actually sustained

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consequential damages

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damages resulting from special circumstances beyond the contract itself; the damages flow only from the consequences of a breach

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punitive damages

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damages awarded to punish the breaching party

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nominal damages

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damages in small amount that are awarded when a breach has occurred but no actual injury has been suffered

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liquidated damages

Back 76

damages that may be specified in a contract as the amount as the amount to be paid to the nonbreaching party in the event the contract is breached in the future.