Legal Studies Chapter 4

Front 1

Contract

Back 1

voluntary exchange of promises between two or more entities- creates legal obligation that is enforceable in court

Front 2

Offer, Acceptance, Consideration, Capacity, Legality

Back 2

What elements must be present in every contract?

Front 3

Uniform Commercial Code

Back 3

regulates the sale of goods and other commercial transactions; banking

Front 4

Unilateral contract

Back 4

when one party makes a promise in exchange for an act (reward in finding lost dog)

Front 5

Bilateral contract

Back 5

created when the parties exchange mutual promises to do some future act

-most contracts are this

- Bob promises to sell his zebra, zoo promises to buy it

Front 6

Express Contract

Back 6

one in which the parties spell out the specifics of their agreement in direct terms- may be written or oral (apt lease, bank loan, home purchase)

Front 7

Implied-in-fact

Back 7

reasonable to infer that the parties intend to create a contract by their conduct (pick up a banana in the store and eat it)

Front 8

Implied contract

Back 8

implied-in-law or quasi-contract; arises in order to prevent unjust enrichment (doctor provides care to unconscious patient, patient has to pay them when they wake up)

Front 9

Valid contract

Back 9

satisfies all requirements of a binding and enforceable agreement

Front 10

Voidable

Back 10

a contract is this if they have the legal right to withdraw from the arrangement without liability

Front 11

Void contract

Back 11

occurs when the agreement lacks one or more of the elements of a valid contract

Front 12

Unenforceable

Back 12

agreement can be this when it satisfies the technical requirements of a valid contract but will not be enforced by the court

Front 13

Offer

Back 13

a proposal by which one party to the other where they both willingly enter a valid contract

*must be a definite proposal, made with intent to contract, be communicated to the party*

Front 14

Acceptance

Back 14

unconditional promise made by a party to be bound by the terms that the contract states

*must be made with intent to contract, be unconditional,be communicated with both ppl

Front 15

Counteroffer

Back 15

a change in the proposal by the one offering the contract constitutes a rejection of the offer

Front 16

Preliminary negotiations

Back 16

"are you interested?" "would you give me"

Front 17

Auction with reserve

Back 17

the auctioneer is inviting people to make offers and no contract is formed until the gavel is struck

Front 18

Auctions without reserve

Back 18

the seller may not withdraw the item once a legitimate bid is received- highest bid obtains product

Front 19

Consideration

Back 19

what each party gives up in return for the act or promise of the other. "quid pro quo"- bargained for exchange

Front 20

Silence

Back 20

can be interpreted as being "acceptance" if the offeree remains silent with the intent of accepting the offer

Front 21

Postal Reorganization Act

Back 21

it is an unfair trade practice to send unsolicited products to customers in the mail

Front 22

Sealed bids

Back 22

construction, municipal, and service contracts are frequently awarded on the basis of this

Front 23

Mailbox rule

Back 23

acceptance of the offer takes place as soon as it is mailed and not when it is received by the offeror

Front 24

Uniform Commercial Information Transaction

Back 24

deals with computer information transactions

Front 25

Illusory Promise

Back 25

where the act of performance is all up to the person behind it.

- the promiser has agreed to do nothing, BUT they create this fake illusion contract

Front 26

Moral obligation

Back 26

insufficient consideration to support a contract

-a parent tells child they'll give them $1,000 bc they love them- is not a valid contract

Front 27

Past consideration

Back 27

will not support a future promise since no consideration exists

Front 28

Pre-existing obligation

Back 28

lacks consideration bc a party is already stuck with performing under a contract so there is no new consideration for the promise

Front 29

Guarantor

Back 29

third person does this; takes obligation of the borrower in the event of a default; a "helper" (college kid can't get a loan- parents need to co-sign)

Front 30

Co-signer

Back 30

can be considered a surety or guarantor- depends on finances

Front 31

Surety

Back 31

liable for the debt as though it were THEM that borrowed the money

Front 32

Guarantor

Back 32

only secondarily liable- the one who they owe money will look to them after the debtor has defaulted and the one who they owe the money can't get it

Front 33

Gift

Back 33

not supported by consideration and is unenforceable (promise of a gift or money)

Front 34

Capacity

Back 34

cannot fully understand the ramifications of the contract and it's rules

Front 35

Ratification

Back 35

occurs when a child reaches maturity and expresses an intention to be bound by the agreement or fails to dis affirm the contract

Front 36

Contracts for necessities

Back 36

contract with (food, water, shelter,colleges) a minor cannot disaffirm.

Front 37

Illegal contract

Back 37

Contract is this if it is criminal, tortious, against public policy

Front 38

Electronic Signature in Global and National Commerce Act

Back 38

provides that a signature, contract, or other record used may not be called fake or not taken as legit as a hand-written signature

Front 39

Lease

Back 39

transfer of the right to possession and use of goods for a term in return for consideration

Front 40

Entrustment

Back 40

the possession of goods to a merchant who deals with that type of good- jeweler owes man a new engagement ring

Front 41

Risk of loss

Back 41

important when the goods are damaged or lost

Front 42

Shipment contract

Back 42

if the seller has to ship the goods, the risk of the goods being lost falls on the buyer

Front 43

Destination contract

Back 43

the risk of loss does not pass until the items have been delivered to that destination

Front 44

Bailee

Back 44

third person who owns warehouse owned by a third party

Front 45

Express Warranty

Back 45

affirmative promises about the quality and features of the items being sold (camera is waterproof 50 ft, glue dries in 30 secs)

Front 46

Warranty of merchantability

Back 46

shall be implied with the sale of a good

Front 47

clickwrap license

Back 47

will accompany the installation of a program from the web

Front 48

shrinkwrap license

Back 48

receives its name from the fact that computer software is contained in a box and packaged in a cellophane shrink wrap

Front 49

Agents

Back 49

businesses act through them- could be an employee or third party; have the power to enter into contracts on behalf of their principles