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51 Cards in this Set

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  • Back
mutual assent
the reciprocal agreement of each party to accept all the terms and conditions in a contract.
offer
the present contractual intent to be bound by a contract with definite and certain terms communicated to the offeree
acceptance
An unequivocal assent to the terms of an offer
consideration
that which is bargained for and given in exchange for a promise. It may
be an act, a forbearance to act, or a return promise on the part of the promisee.
bilateral contract
an offered promise that is accepted by the giving of a
return promise.
unilateral contract
results from an offered promise that must be accepted by giving the performance specified. A mere promise to perform does not constitute acceptance in such a
case.
adams v lindsell
Postal rule. When the Offeree has placed his acceptance in the post there is acceptance.
option
An agreement supported by consideration that involves a promise to hold an offer open for a specified length of time
firm offer
an offer (usually in writing) which states it may not be withdrawn, revoked or amended for a specific period of time. If the offer is accepted without a change during that period, there is a firm, enforceable contract
caldwell v cline
holds that when an offer states that it will be open for a
certain number of days the first day is considered to be the day the offeree receives the offer.
revocation
the canceling, annulling, or otherwise voiding of an offer.
-A revocation is deemed to be effective upon its receipt
by the offeree
unilateral contract-revocation of offer rule
The offeror in a unilateral contract may not revoke the offer for the time stated in the offer or if no time is stated in the offer, then for a reasonable length of time if the offeree begins performance
rejection
A manifestation by the offeree that he or she does not intend to accept the offer
or give it further consideration.
-A rejection becomes effective upon receipt by the offeror.
counteroffer
An offer by the original offeree regarding the same transaction but containing terms that differ from those proposed in the original offer made by the offeror
counteroffer as implied rejection
A counteroffer is an implied rejection of the original offer. It is, in effect, a new offer available for acceptance.
illusory promise
A promise that pledges nothing, because it is vague or because the promisor can choose whether or not to honor it. Such promises do not create contracts and are not legally binding.
promissory estoppel
Provides a substitute for the element of consideration under certain circumstances involving foreseeable detrimental reliance upon a gratuitous promise, where a remedy against the non-performing promiser may be necessary in order to avoid injustice in the particular case.
moral obligation rule
This doctrine applies where the promisor has received something of value from the promisee in the form of money or other material benefits under such circumstances as to create a moral obligation to pay for what they have received, and a later promise to do so, resulting in a finding of consideration for such a promise. The doctrine most often applies in situations involving promises to pay for previously entered gratuitous services, promises to pay debts barred by the statute of limitations and promises to pay debts discharged in bankruptcy. The promise can be implied by a mere acknowledgment of a debt or by part payment of the debt. Use of the doctrine supplies the element of consideration in situations where it would otherwise be missing from the bargain.
legal detriment
A promise to do something that one is not legally obligated to do or to refrain from doing something that one is legally privileged to do.
failure of consideration
Occurs when one of the parties to a contract fails to perform as required by the terms of the contract or the subject matter of the consideration ceases to exist or becomes worthless even though valid consideration was present when the parties first contracted.
want of consideration
refers to the parties' failure to make a contract because
there was no consideration present from the beginning of the transaction.
Sufficiency of Consideration
Generally, courts do not require that the consideration benefit the offeree, or that it be of any substantial value, as long as it serves as an inducement for the promise of the other party. However, some courts have held that nominal consideration may not constitute a valid contract if the promisor's promises are valued considerably higher than those of the promisee
Executed Contract
a contract where all parties have performed.
Executory Contract
A contract that remains to be completed in the future by at least one of the contracting parties.
Meeting of the Minds
Most jurisdictions hold that a contract is not formed until there has been a "meeting of the minds" according to the intentions of the parties.
Outward Manifestation Theory
contracts are formed according to outward manifestations in accordance with the understanding of the supposed "reasonable man."
Merit Music v. Sonneborn
In the absence of fraud, duress, or material mistake a party to a contract with the capacity to understand a written document will be bound by his or her signature whether or not they read the document.
Express Contract
a contract manifested by words written or oral.
Implied in Fact Contract
the acts or conduct of the parties and the surrounding circumstances make it reasonable to assume that a contract exists between them even though the contract is never manifested by words
quasi contract
An implied in law contract is one that is imposed by operation
of law to do justice even though it is clear that no promise was ever manifested by words or ever intended.
The creation of such a contract will occur where one party accepts or retains benefits that have been
conferred upon him by another party who expected to be paid and who was not a volunteer.
quantum meruit
refers to the reasonable value deserved for one's labor
quantum valebant
the reasonable value that is deserved for goods.
requirement contract
A contract to supply all of a certain type of goods or
merchandise that a particular party may have a need for over a certain period of time.
output contract
A contract to supply all of a certain type of goods or merchandise
that a particular party may produce.
option contract
a contract wherein the promisor for consideration agrees to make
a certain offer irrevocable.
void contract
contract not enforceable by either party
voidable contract
A voidable contract is a contract that can be disaffirmed by one or more of the parties
for reasons related to legal immaturity or mental incapacity.
power of disaffirmance
A legally immature or mentally incapacitated person has the power to disaffirm a contract but for all other purposes the contract is valid unless and until it is disaffirmed. The disaffirmance occurs when the legally immature or mentally incapacitated person manifests to the other party an unwillingness to continue to be bound by the contract.
exculpatory clause
a provision in a contract the removes liability from one or more of the parties from certain acts or events.
contract of adhesion
provisions in contract give one party unequal bargaining power
unconscionable contract
A contract which no man in his senses, not under delusion, would make, on the one hand, and which no fair and honest man would accept, on the other. gained through oppression or surprise.ie small print.
condition
an act or event, other than a lapse of time, which affects a duty to render a promised performance.
condition precedent
an event which must take place before a party to a contract must perform or do their part.
condition concurrent
a type of condition precedent which exists when the
parties to a contract are bound to render performance at the same time.
condition subsequent
a happening which terminates the duty of a party to perform or do his/her part
express conditions
arise out of a stated provision in the contract
constructive conditions
those conditions that the law will imply even though the parties did not and possibly would not have included them in the contract. such conditions will be implied by the law to promote justice.
doctrine of constructive conditions
the fiulfillment of a promise in a bilateral contract can be construed to be a condition of the other party's performance even in the absence of an express provision to that effect.
implied condition of cooperation
implied in a contract wherever the cooperation of the promisee is necessary for the performance of the promise.
substantial performance
a plaintiff who has failed to perform a constructive condition in some minor or immaterial way can still recover on the contract.
waiver of condition
when a party to a contract voluntarily relinquishes their right to assert the non-performance of a condition, either expressly or by conduct.