Business Law Chapter 7

Front 1

Promise

Back 1

a declaration that binds the person who makes it (the promiser) to do or not to do a certain act.

Front 2

promisor

Back 2

a person who makes a promise

Front 3

promisee

Back 3

a person to whom a promise is made.

Front 4

contract

Back 4

a set of promises constituting an agreement between parties, giving each a legal duty to the other and also the right to seek a remedy for the breach of the promises or duties.

Front 5

objective theory of contracts

Back 5

the view that contracting the parties are bound only by terms that can be objectively inferred from promises made.

Front 6

offeror

Back 6

a person who makes an offer

Front 7

offeree

Back 7

a person to whom an offer is made

Front 8

bilateral contract

Back 8

a type of contract that arises when a promise is given in exchange for a return promise.

Front 9

unilateral contract

Back 9

a contract that results when an offer can be accepted only by the offeree's performance.

Front 10

formal contract

Back 10

an agreement that by law requires a specific form for its validity.

Front 11

informal contract

Back 11

a contract that does not require a specific form or method are stated in words, oral or written.

Front 12

implied contract

Back 12

a contact formed in whole or in part from the conduct of the parties.

Front 13

express contract

Back 13

a contract in which the terms of the agreement are stated in words, oral or written.

Front 14

executed contract

Back 14

a contract that has been fully performed by both parties.

Front 15

executory contract

Back 15

a contract that has not yet been fully performed.

Front 16

valid contract

Back 16

a contract that results when the elements necessary for contract formation (agreement, consideration, legal purpose, and contractual capacity) are present.

Front 17

voidable contract

Back 17

a contract that may be legally avoided at the option of one or both of the parties.

Front 18

unforceable contract

Back 18

a valid contract rendered unforceable by some statute or law.

Front 19

void contract

Back 19

a contract having no legal force or binding effect.

Front 20

quasi contract

Back 20

an obligation or contract imposed by law (a court), in the absence of an agreement, to prevent the unjust enrichment of one party.

Front 21

agreement

Back 21

a mutual understanding or meeting of the minds between two or more individuals regarding the terms of a contract.f

Front 22

offer

Back 22

a promise or commitment to preform or refrain from performing some specified act in the future.

Front 23

revocation

Back 23

the withdrawal of a contract offer by the offeror. Unless an offer is irrevocable, it can be revoked at any time prior to acceptance without liability.

Front 24

counteroffer

Back 24

An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.

Front 25

mirror image rule

Back 25

a common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.

Front 26

option contract

Back 26

a contract under which the offeror cannot revoke the offer for a stipulated time period (because the offeree has given consideration for the offer to remain open.

Front 27

acceptance

Back 27

the act of voluntarily agreeing, through words or conduct, to the terms of an offer, thereby creating a contract.

Front 28

mailbox rule

Back 28

a common law rule that acceptance take effect, and thus completes formation of the contract, at the time the offeree sends or delivers the acceptance via the communication made expressively or impliedly authorized by the offeror.

Front 29

e contract

Back 29

a contract that is formed electronically.

Front 30

forum-selection clause

Back 30

a provision in a contract designating the court, jurisdiction, or tribunal that will decide any disputes arising under the contract.

Front 31

click on agreement

Back 31

an agreement that arises when an online buyer clicks on "I agree" or otherwise includes her or his assent to be bound by the terms of an offer.

Front 32

shrink wrap agreement

Back 32

an agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packages.

Front 33

browse wrap term

Back 33

A term or condition of use that is presented when an online buyer downloads a product but that the buyer does not have to agree to before installing or using the product.

Front 34

e signature

Back 34

An electronic sound, symbol, or process attached to or logically associated with a record and adopted by a person with the intent to sign the record.

Front 35

Record

Back 35

information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.

Front 36

consideration

Back 36

the value given in a return for a promise or performance in a contractual agreement.

Front 37

forbearance

Back 37

the act of refraining from an action that one has a legal right to undertake.

Front 38

recission

Back 38

a remedy whereby a contact is canceled and the parties are returned to the positions they occupied before the contract was made.

Front 39

past consideration

Back 39

an act that took place in the past and that ordinarily, by itself, cannot be consideration for a later promise to pay for the act.

Front 40

accord and satisfaction

Back 40

a common means of selling a disputed claim, whereby a debtor offers to pay a lesser amount than the creditor purports to be owed.

Front 41

liquidated debt

Back 41

a debt whose amount has been ascertained, fixed, agreed on, settled, or exactly determined.

Front 42

release

Back 42

an agreement in which one party gives up the right to pursue a legal claim against another party.

Front 43

covenant not to sue

Back 43

an agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.

Front 44

promissory estoppel

Back 44

a doctrine that can be used to enforce a promise when the promisee has justifiably relied on it and when justice will be better served by enforcing the promise

Front 45

estopped

Back 45

barred, impeded, or precluded.