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55 Cards in this Set
- Front
- Back
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4 elements of a contract |
Agreement - offer and acceptance Capacity to contract Consideration Legality of purpose |
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Bilateral contract |
Contract in which both parties promise a performance. Either party may enforce the others promise. |
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Majority of contracts are |
Bilateral |
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Unilateral contract |
A contract in in which only one party makes a promise |
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Executory contract |
Has not been completely performed by one or both parties |
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Executed contract |
A completed contract |
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Express contract |
An agreement in which the terms have been explicitly communicated |
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Implied contract |
An agreement in which the terms are dictated by the parties actions Implied in fact & implied in law |
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Implied in fact |
Parties presumably intended to enter into often based on trade customs or prior relationships between the parties |
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Implied in law |
(Quasi-contract) contract imposed by law due to parties conduct |
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Requirements of an offer |
Intent to contract Definite terms Communication of offer |
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_____________is the most important factor in determining whether a communication is an offer |
Offeror's language |
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Requirements of an offer |
Intent to contract Definite terms Communication of offer |
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Contract created if |
Offer is accepted |
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___________is the most important factor in determining whether a communication is an offer |
Offers language |
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The two essential elements required for an offer to be valid are |
Subject matter of the proposed contract Identification of the parties to the contract |
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And offered cannot be accepted before the offeree has |
Knowledge of the offer |
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An offer can terminate due to operation of law which includes the following |
Law enacted making it illegal to sell goods to Subject matter is destroyed Offeror/offeree declared insane before acceptance |
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The executor of an estate cannot accept an offer that was originally made to the decendent while he or she was still alive. True or false |
True |
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Texas and also can terminate due to operation of law: |
Law enacted making it illegal to sell goods Subject matter is destroyed Offeror/offeree declared insane before acceptance |
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Capacity represents |
The ability to sue or be sued or enter into a contract |
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Most common age for person to enter into a contract |
18 |
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Contact with minors that are not avoidable |
Contract for necessaries relates to health education and comfort. Marriage contracts Bail bonds Child support |
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Valuable consideration |
Supports a contract. Courts don't not attempt to determine the adequacy of consideration |
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Good consideration |
Is different than valuable consideration Based on love and affection or moral duty Does not support a contract |
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Forbearance is often not seen in |
Compromise cases Can represent a promise to refrain from suing |
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The following are not valid consideration |
Past consideration Promise to perform existing obligations ex police officer promise to fight crime Compromise and release of claims |
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A contract may be valid even without consideration in 2 cases |
Promissory estoppel Charitable subscriptions |
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Promissory estoppel |
Enforcement of a prior promise that is made without consideration Applies when other party relies on a promise Designed to prevent injustice |
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Charitable subscriptions |
Making a pledge to charity is binding on the pleading party Courts apply promissory estoppel |
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Illegal contracts |
Contracts to commit crimes Contracts in restraint of marriage Wagering contracts Usury contracts Contracts with unlicensed practitioner Contracts in restraint of trade |
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Contract to commit crime |
A contract is void of it involves one party consenting to a crime Insurance coverage of illegal property is void Business interruption insurance on illegal business is void Coverage of building with illegal activity conducted inside is valid |
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Wagering contracts |
Gambling contracts are illegal |
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Contracts in restraint of marriage |
Illegal regardless of whether it's marriage or birth Contracts to delay marriage are enforceable provided a time limit is provided |
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Usury contracts |
Contracts in which lenders charge more than legal limit interest rates |
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Contract with unlicensed practitioner |
If a person completes services 20th out a required license recipient of services can refuse to pay |
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Contracts in restraint of trade |
Contracts that unreasonably stifle competition are illegal |
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A contract may lack assent if the parties entered into the contract by |
Fraud Mistake Duress Undue influence Innocent misrepresentation |
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Fraud |
Is a false representation of a material fact Representation must be knowingly made with the intent to deceive |
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Unilateral mistake |
Involves 1 party's mistake Generally no affect on contract unless one party knowingly exploits another mistake |
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Bilateral mistake |
Involves both parties being voidable only if the mutual mistake relates to material fact |
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Duress is |
the the use of restraints threats of violence or actual violence to coerce a party to act against his or her best interest |
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Undue influence |
Represents the use of improper power to deprive a person of their free will |
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Innocent misrepresentation |
Does not involve fraud Monetary damages are not awarded for innocent misrepresentation |
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Statute of frauds is |
A law preventing fraud and perjury and generally requires contracts to be in writing and contain signatures Real property contracts must be in writing Promise from executor to pay estate debts from executors personal assets must be in writing |
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Contract subject to statute of frauds |
Sale of land Cannot be performed in 1 year Pay another's debt Consideration of marriage Executors of dependents estate to pay Estates debts from executors funds Sale of goods 500.00 or more All must be in writing |
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________ do not create new contracts for the parties |
Courts |
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Substitution |
Parties can agree to substitute a new contract for an existing one |
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Novation |
Substitution of a third party for one of the original parties to a contract Releases an original party from his or her obligations under the contract |
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According and satisfaction |
Discharge debt |
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Impossibility |
Promisors duty is discharged if performance becomes impossible due to Frustration Impracticability Impossibility |
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Frustration |
Preventing attainment of goal unforseen circumstances |
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Impracticability |
Performance is unreasonable |
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Impossibility |
Performance can't occur |
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Under temporary impossibility of performance |
Promisors duty is suspended when impossibility ends promisors duty will renew |
