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22 Cards in this Set

  • Front
  • Back

Define contract

an agreement between 2 parties either to do something or not to do something in exchange for some form of consideration.


5 Basic Requirements for a Legal Contract:

**remember (C-COLA) coca cola acronym **

*

Capacity


*

Consideration


*

an Offer


*

Legality


*

an Acceptance

Capacity

Legal authority. Who has the power to accept .


Minors: may disavow contract when reaching majority age Mentally competent: Intoxicated or disability means not mentally competent


Consideration

Whats at stake.Without consideration there is no contract.Legal benefit to promiser (party making the offer)


* Forbearance: detriment of loss by promisee. Agree not to do somehting, Person accepting gives something up

Offer

commitment to do or not to do something. may be written or verbal. manifestation of a promise

Legality

Subject of the contract must be legal (self explanatory)

Acceptance

refers specifically to the promise(s) contained within the offer. Made by person with the power to accept (capacity). Unconditional; cannot alter original offer. To do so= counter offer

Void Contract

no legal obligation (no contrat formed)



ex: lack of consideration

Voidable Contracts

one party has option to choose to get out of the contract


minor


misrepresentation: (voidable by victim)


Duress: contract formed due to wrongful act or threat


Mistake: mutual mistake, unilateral mistake


Unforeseeable Contract:


ex: contrary to statutory law suchs as statutes of Fraud

Monetary Damages

General (sale of goods)-difference between contract price and market price


Plaintiff has a duty to mitigate damages


6 types of Monetary Damages

Expectation Interest


Restitution Interest


Reliance Expectation


Liquidated


Noimal damages


Punitive damages

Expectation Interest

put in position as if contract were performed

Restitution Interest

restore to position they were in before contract was made

Reliance Expectation

losses suffered in the belief that contract would be performed.


ex: investmests

Liquidated

damages agreed upon in terms of the contract itself

Noimal damages

no significant economic loss, motivated by people

Punitive damages

not often in contract law but sometimes for reprehensible or malicious breach

Restoration

rewrite contract to conform to the true intentions of the parties


ex: mutual mistake

Rescission and Restitution

court may undo/end contract and put parties back into positions they were in before the contract. Both parties then make restitiution to each other by returning whatever goods/property/etc were transferred or equivalent amount of money

which statutory laws require contracts to be in writing

Writing Requirements: contract can usually be either in writing or verbally but via statutory law, some types of contracts MUST be in writing



Uniform commercial Code (UCC)


Statutues of Fraud (state by state)

Uniform commercial Code (UCC)

*

lays out legal principles dealing with commercial transactions (contracts)


ex: sale + transfer of goods in excess of a certain $ amount

Statutues of Fraud (state by state)

*

goal is to minimize the possiblilty of fradulant behavior in certain types of transactions


ex: sale of land or interest of land


* authority for an agent to sell property