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17 Cards in this Set
- Front
- Back
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What is a contract?
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An agreement between two or more parties to do (or not to do) certain thing, which the court will enforce.
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What makes an agreement enforceable by a court?
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the agreement must be made by the rules of contract law.
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What are the purposes of the rules of contract law?
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To protect the parties against misunderstandings and false claims.
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What are the four ways of classifying all contracts?
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1. Express or implied
2. Unilateral or bilateral 3. Executory or executed 4. Valid, voidable, void, or unenforceable |
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What is an express contract?
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And agreement that has been made in words, whether spoken or written.
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What is an implied contract?
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An agreement that hasn't been put into words, but is implied from the actions of the parties.
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What is a unilateral contract?
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When one party promises something for the performance of a certain action, but the other party does not promise to perform.
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When does a unilateral contract exists?
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It is formed only if the other party performs the requested action.
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What is a bilateral contract?
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One exists when each party makes a binding promise to the other. It is formed by the exchange of promises.
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What is an executory contract?
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A contract where something remains to be done by one party.
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What is an executed contract?
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One that has been fully performed.
Note: most contracts start executory and end up executed. |
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What is a valid contract?
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An agreement that meets all legal requirements for contract formation.
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What is a void contract?
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One that doesn't meet one or more of the requirements for contract formation. It is not a contract.
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What is a voidable contract?
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If one of the parties has a right to either rescind or affirm the contract. Usually happens when one party has been taken advantage of in some way.
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What is in unenforceable contract?
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A contract that may be valid in all respects except that it cannot be enforced in a court of law. e.g. when a valid contract becomes unenforceable b/c the statute of limitations has run out.
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What are the four essential elements for a valid contract?
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MaC CL
1. Mutual assent 2. Capacity to contract 3. Consideration 4. Lawful purpose |
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What is needed for the capacity to contract?
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the person must be:
1. at least 18 years old 2. legally competent |
