Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/31

Click to flip

31 Cards in this Set

  • Front
  • Back
What six elements must a contract have to be binding?
1. Offer - must be genuine
2. Acceptance
3. Mutual Intent
4. Consideration
5. Capacity to Contracts
6. Lawful Purpose
True or False?
All contracts are based on agreement of one kind or another.
True.
True or False?
All agreements are contracts.
False
Fill in the blanks:
A legally enforceable contract is a _________ ____________, not necessarily in __________, between two or more _________ parties which is supported by mutual __________ to do some ______ act __________.
Deliberate agreement; writing; competent; consideration; legal; voluntarily
"Agreement equals _______ PLUS ____________."
offer, acceptance
What is an offer?
Made in words, writing or implied by offerer's conduct. Must have serious intention. Words must constitute a positive offer. Must be genuine.
True or False?
Price tags, price lists, catalogues, and media ads are all examples of offers.
False, they are merely invitations to make offers.
What word is often used to mean any simple contract?
Parol
When does a contract come into existence?
When one person proposes a contract which is accepted by another person.
True or False?
The offer must be communicated to the person or a class or person for whom it was intended.
True
An offer was delivered to the wrong person who received it by mistake. Can this person act upon it?
No.
Peter said to Joe, "I'm thinking about selling my car." Does this constitute an offer?
No, an offer must be definite.
True or False?
Advertisements in newspapers are not offers.
True.
What are 3 rules which apply if the offeree wishes to accept an offer?
1. Acceptance must be made in the manner and time stipulated in the offer.
2. Must be communicated to the offeror.
3. Must be unconditional.
True or False?
The offeree cannot try to accept and change the terms of the offer at the same time.
True.
If the offeree tries to change the offer, he is deemed by law to have done what two things?
1. Refused the offer
2. Made a counter offer.
When may the offeror revoke his/her offer?
1. if the offeror dies before acceptance
2. counter offer is made
3. time stipulation expires before acceptance is made
What are the 3 terms to describe the correctness of a contract?
1. Valid
2. Void
3. Voidable
An agreement is binding even if the exact instructions for method of acceptance are given and not followed exactly.
False.
If the offeror gives exact instructions as to the method of acceptance, the mode of acceptance becomes his....what?
Explicit agent
True or False?
An acceptance is firm the moment the offeree gives the acceptance to the agent.
True.
True or False?
If method of acceptance is not given by offeror, then the offeree has a choice of modes of returning the acceptance.
True.
If the offeree choose the same mode by which the offer came, he is said to be using the offeror's what?
Implied agent
What is consideration?
A symbol of serious intention of both parties to enter into an agreement. Its normally a thing of value or a promise of something of value.
True or False?
Consideration can be a past act.
False.
Can a subcontractor be paid twice for doing the same act, for which he asked to perform the same job by both the owner and general contractor?
No, not legally.
True or False?
Consideration from each side must be of equal value.
False.
What types of contracts must be in writing, according to The Statute of Frauds (1677)?
- Sale of land or any interest concerning land.
- wills, guarantees
- contracts not complete within 1 year
Common law decisions established this due to the arising disputes over verbal agreements for sale of land.
Doctrine of Part Performance
When does the sale of goods need to be in writing, according to the Sale of Goods Act.
Over $50
Is the price tag on a bottle of pop an offer?
No.