Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
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 |