Mgmt 209-Chapter 4 Contracts And Agency Law

Front 1

legal agreement of the parties to do something not obligated to do or to refrain from doing something legally entitled to do

Back 1

Contract

Front 2

Functions of a contract

Back 2

1.Mutually beneficial exchange
2. Allocation of risks

Front 3

apparent intention of a party to enter into a contract is determined by the objective, outward manifestation of his or her assent as it would be interpreted by a reasonable person, rather that by the party's secret subjective intentions

Back 3

The objective theory of contracts

Front 4

If all the elements of the contract are present, it is...

Back 4

enforceable

Front 5

A fully and explicitly stated, oral, or written contract
Ex. signed lease

Back 5

Express contract

Front 6

inferred from the conduct of the parties

Back 6

Implied contract

Front 7

Not a true contract, sort of contract
AKA implied-in-law contracts
An element is missing

Back 7

Quasi contract

Front 8

absolute, must perform contract, only occurrence necessary is the passage of time

Back 8

Unconditional contract

Front 9

no duty to perform if the condition is not met

Back 9

Conditional contract

Front 10

party making the offer

Back 10

offeror

Front 11

party to who the offer is made

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offeree

Front 12

promise to do or not to do something

Back 12

promisor

Front 13

party to whom the promise is made

Back 13

promisee

Front 14

both parties are promisors, mutual exchange of promise, accepts by a promise, a promise for a promise

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Bilateral contracts

Front 15

a promise for an act, one promisor, offeree accepts by performance, total performance, don't have to complete

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Unilateral contracts

Front 16

A bilateral contract is enforced once...

Back 16

the promise is made by the offeree

Front 17

A unilateral is enforced once

Back 17

performance is performed by offeree

Front 18

a contract not fully performed by either party, something is left to be done

Back 18

Executory contract

Front 19

contract has been fully performed by all parties

Back 19

executed contract

Front 20

one party has completed the work, the other party has not

Back 20

partially executed, which is executory

Front 21

nothing is wrong with the contract, all the elements are present and it is enforceable

Back 21

Valid

Front 22

not a contract, not recognized by law, no legal obligation on any of the parties

Back 22

Void

Front 23

valid contract, one of the parties has right to avoid contractual obligations without incurring legal liability

Back 23

Voidable

Front 24

valid contract that can no longer be enforced, ex. the law changes, something occurs to make the contract unenforceable

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Unenforceable

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mutual agreement, consideration, contractual capacity of parties, legal subject matter, genuine and real assent, some contracts must be in writing

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6 elements of a contract

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the offeror must intend to create a legal obligation or atleast must appear to so intend for the promise to constitute an offer, determined by the objective standard

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Intent

Front 27

terms of the offer must have sufficient detail so other party and court is reasonably certain of terms, not all details have to be there, but quantity term must be present

Back 27

Definite terms and conditions

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the offer must be communicated

Back 28

Communication of the offer

Front 29

revocation or rejection

Back 29

ways to terminate an offer

Front 30

offeror takes back the offer prior to acceptance by the offeree

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revocation

Front 31

offeree says no

Back 31

rejections

Front 32

An acceptance to an offer must be..

Back 32

unconditional, unequivocal, and legally communicated

Front 33

Something of value or something bargained for in exchange for a promise

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Consideration

Front 34

an act, promise to act, or refraining from an act, which not legally obligated to do

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legal detriment

Front 35

legal right acquired by promise due to promisee's legal detriment

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legal benefit

Front 36

ability of contracting party to understand he's entering into a contract and to understand general nature of the contract

Back 36

contractual capacity

Front 37

necessities, enlistment in military, marriage contracts (common law), statute

Back 37

exceptions to minors for voidable contracts

Front 38

in order for a contract to be voidable under intoxication...

Back 38

you must be so intoxicated that you did not understand the very nature of the contract

Front 39

if intoxicated at time enter into a contract, the contract is...

Back 39

voidable

Front 40

if after adjucated insane, then enter into a contract, that contract is...

Back 40

void

Front 41

if you havent been declared legally insane but then you are the contract is...

Back 41

voidable, but you have to pay restitution

Front 42

a totally one sided contract, due to unequal bargaining power takes advantage of other person, grossly unfair, violates public policy

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unconscionable contract

Front 43

releases one party from consequences of wrongful acts or negligence, violates public policy

Back 43

exculpatory agreement

Front 44

if a unilateral mistake is made then..

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no relief

Front 45

if a mutual mistake of material fact is made then..

Back 45

relief, either party can void the contract

Front 46

misrepresentation, intent (attempt to deceive), justifiable reliance on misrepresentation, innocent party injured

Back 46

Element of Fraud

Front 47

someone forces another person to enter into a contract against his or her will

Back 47

Duress

Front 48

someone takes control of another person and substitutes their will for that of the victim

Back 48

Undue Influence