Business Law

Front 1

definition of a contract

Back 1

an agreement between two or more parties that can be enforced in court

Front 2

requirements of a contract

Back 2

ALI
CAN
COOK
LASAGNA
agreement, consideration, capacity, legality

Front 3

possible defenses to enforcement of a contract

Back 3

-genuineness of assent
-form

Front 4

bilateral

Back 4

a promise for a promise

Front 5

unilateral

Back 5

a promise for an act

Front 6

express

Back 6

formed by words -be in oral, written or both

Front 7

implied in fact

Back 7

formed at least in part by conduct of parties

Front 8

quasi contract *

Back 8

imposed by law to prevent unjust enrichment

Front 9

formal

Back 9

requires special form for creation

Front 10

informal

Back 10

no special form for creation

Front 11

executed

Back 11

fully performed contract

Front 12

executory

Back 12

contract not yet fully performed

Front 13

valid

Back 13

meets all the requirements for a contract

Front 14

void

Back 14

no contract exists

Front 15

voidable

Back 15

contract in which a party has the option of avoiding obligation

Front 16

* unenforceable

Back 16

valid contract that cant be enforced because of legal defense

Front 17

interpretation of contracts

Back 17

different standards to go by when a contract is ambiguous

Front 18

Requirements of an offer

Back 18

intent-must be serious, objective intent
definiteness-terms of offer must be definite
communication-offer must be communicated to offeree

Front 19

termination of offer

Back 19

1. by action of parties
2. by operation of law

Front 20

termination of offer: by action of parties=

Back 20

revocation
rejection
counteroffer

Front 21

Termination of offer: by operation of law=

Back 21

lapse of time
destruction of specific subject matter
death or incompetence
illegality

Front 22

acceptance of offer

Back 22

only be made by offeree
must be unequivocal

Front 23

acceptance of unilateral offer is effective when?

Back 23

on full performance of requested act

Front 24

acceptance of bilateral offer can be communicated by offeree is impliedly authorized:

Back 24

A. same mode used by offeror
b. mail, when far apart
c. in sales contracts-any reasonable medium

Front 25

bilateral agreement of offer is effective when?

Back 25

upon dispatch

Front 26

elements of consideration *

Back 26

ask jordan

Front 27

adequacy of consideration *

Back 27

ask jord

Front 28

contracts that lack consideration:

Back 28

preexisting duty: elizabeth smart sister
past consideration: actions or events that have already taken place dont constitute legally sufficient consideration
illusory promises: when nature ore extent of performance is too uncertain

Front 29

disaffirmance

Back 29

legal avoidance of a contractual obligation (minors)

Front 30

if a minor disaffirms part of a contract.... what else..

Back 30

the entire contract must be disaffirmed

Front 31

if a minor has committed some form a fraud can they still disaffirm?

Back 31

no

Front 32

ratification

Back 32

acceptance, or affirmation of a legal obligation; may be express or implied

Front 33

parents' liability

Back 33

usually not held liable unless for contracts of necessaries

Front 34

emancipation

Back 34

child's parent relinquishes legal right to exercise control over child

Front 35

can intoxicated people get out of a contract?

Back 35

yes if they lacked mental capacity at the time, even if they got drunk by choice BUT contract is enforceable if the person still understood the legal consequences of entering into the contract

Front 36

is a contract made with a mentally incompetent person valid?

Back 36

no

Front 37

contracts contrary to statute:

Back 37

usury-unlawful interest rate
gambling
sabbath laws-made on sunday, void
licensing statutes-not licensed to legally do so

Front 38

usury

Back 38

occurs when a lender makes a loan at an interest rate above lawful maximum

Front 39

unilateral mistake

Back 39

generally mistaken party is still bound by contract

Front 40

when,in a unilateral mistake, is the mistaken party not bound by contract?

Back 40

other party knows or should have known mistake
or its an inadvertent mathematical error

Front 41

3 parts to fraud

Back 41

1. misrepresentation of a material fact
2. must be intent to deceive
3. innocent party must justifiably rely on misrepresentation

Front 42

undue influence

Back 42

special relationships- one party's free will has been overcome by undue influence exerted by other party. usually contract is voidable

Front 43

duress

Back 43

being feared into a contract

Front 44

Contracts that MUST be in writing:

Back 44

Contracts involving land
-contracts whose terms cant be performed within one year
-collateral promises
-promises made in consideration of a marriage
-contracts for the sale of goods prices at $500 or more

Front 45

parol evidence rule *

Back 45

ask jord!

Front 46

punitive damages *

Back 46

ask jord!

Front 47

liquidated damages

Back 47

amount stipulated in the contract, that the parties to a contract believe to be a reasonable estimation of the damages that will occur in the event of a breach EX. putting money down on a house

Front 48

nominal damages

Back 48

small amounts such as $1, no actual damages were suffered but establishes that defendant was in the wrong

Front 49

consequential damages *

Back 49

resulting from special circumstances beyond contract itself "does not directly or immediately result from the breach (for ex. lost profits) to collect special damages they must have been reasonably foreseeable"

Front 50

rescission

Back 50

remedy whereby a contract is cancelled and the parties are restored to original positions that they occupied prior to transaction

Front 51

restitution

Back 51

when contract is rescinded both parties must make restitution to each other by returning goods, funds previously conveyed. this is to prevent unjust enrichment

Front 52

specific performance

Back 52

equitable remedy requiring exactly the performance that was specified in a contract. Ex. shiny toy guns .. but they sent farmer joe

Front 53

reformation

Back 53

parties ask court to actually rewrite the contract

Front 54

Recovery based on Quasi contract

Back 54

"theory" imposed by courts to get justice.
party seeking recovery must show:
benefit was conferred on the other party
party conferring the benefit did so with expectation of being paid
benefit was not voluntary
retaining benefit would result in unjust enrichment of party that got benefit

Front 55

provisions limiting remedies *

Back 55

a contract that says no damages may be claimed in the event that a contract is breached - who would do this?

Front 56

election of remedies

Back 56

choosing which remedy you'd like: specific performance, damages, etc. and going with that. this makes sure there is not "double recovery" happening

Front 57

Scope of the UCC

Back 57

attempts to provide framework of rules to deal with all phases ordinarily arising in a commercial sales or lease transaction

Front 58

Scope of Article 2-Leases

Back 58

governs contracts for the lease of goods (is this all we need to know?)

Front 59

Scope of Article 2-Sales

Back 59

governs contracts for the sale of goods

Front 60

open quantity terms: requirements contract

Back 60

agreement that buyer will buy only from certain seller up to a stated amount of what buyer needs (Cannery agrees to buy its green beans from Cupp for summer of 2002)

Front 61

open quantity terms: output contract

Back 61

buyer agrees to buy all or up to stated amount of what seller produces (Cannery buys all green beans Cupp produces for summer of 2002)

Front 62

UCC: Offer: Firm offer

Back 62

offer irrevocable without consideration. firm offer by merchant must be in writing and be signed by offeror

Front 63

commercial impractibility is..

Back 63

when an unforeseeable problem arises that neither party had thought of before