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29 Cards in this Set
- Front
- Back
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Contract |
Voluntary exchange of promises and commitments between parties that are legally enforceable in our courts |
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Consensus |
Parties must come to a common understanding of their mutual obligations and responsibilities |
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Elements of a contract |
Offer Acceptance Consideration |
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Offer |
Tentative promise that contains the terms of the anticipated contract |
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Acceptance |
Commitment by offeree to be bound by terms of offer. Must be complete and unconditional |
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Consideration |
Exchange of promises/benefits required |
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End of an offer |
Offer will end: Specific time Death or insanity or offeror Counter offer Etc |
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Void/Voidable contracts |
Void = never was a contract Voidable = valid contract, one party has the right to escape the contract |
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Capacity |
Some people are incapable of entering contracts Ex: Infants, insanity or intoxication |
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Legality (contracts) |
Contracts that have unlawful objectives or illegal consideration are void |
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Intention |
Parties must intend legal consequences to result from contract |
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Mistake |
When parties have a different understanding of terms of contract. 3 common: Shared mistake Mutual mistake Unilateral mistake |
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Shared mistake |
Both parties have made the same mistake. Contract may be void for lack of consensus |
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Mutual mistake |
Where each party has a different understanding of the contract terms. |
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Unilateral mistake |
Only one party misunderstood a term of contract. Usually has no effect on contract |
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Exemption clauses |
Attempt to limit or eliminate liability for one party to the contract. Usually in standard form contracts |
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Misrepresentation |
False, misleading statements that induce a person to enter into a contract. Types: Innocent Fraudulent Negligent |
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Innocent Misrepresentation |
Misleading another without knowing or being careless. Ex: Advertising a car as a 2008 but it’s actually a 2007. |
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Fraudulent misrepresentation |
Intentionally and knowingly misleading another to induce them to enter into a contract |
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Negligent misrepresentation |
If person making misrepresentation should have known what they were saying was false but was careless |
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Duress |
Where you enter into a contract because of coercion, threats against you. May be against you or your family, property, business. Contract usually voidable |
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Undue influence |
Abuse of trusting relationship making a contract voidable |
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Unconscionability |
Taking advantage of vulnerable person’s situation. Contract grossly unfair to victim |
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Assignment |
Transfer to a 3rd party of rights arising under a contract |
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Negotiable instruments |
Promissory note, cheque’s, bill of exchange or draft are considered to be this. |
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Conditions |
Major terms of a contract. |
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Warranties |
Minor terms of a contract |
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Four ways to discharge a contract |
Performance Breach Frustration Agreement |
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Damages |
Specific damages: can be calculated General damages: cannot be calculated Punitive damages: designed to punish rather than compensate |
