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76 Cards in this Set

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  • Back
  • 3rd side (hint)
bilateral contract
a promise for a promise
a contract that a party has the option of avoiding or enforcing
executed contract
a fully performed contract
executory contract
a contract not fully performed
express contract
formed by words(oral, written, or a combination)
formal contract
requires a special form for contract information
implied-in-fact contract
formed at least in part by conduct of the parties
informal contract
requires no special form for contract information
no contract exists, or there is a contract without legal obligations
a contract that has the neccessary contractual elements of offer and acceptance consideration, parties with legal capacity, and a legal purpose
unenforcable contract
a valid contract that cannot be enforced because of a legal defense
unilateral contract
a promise for an act
quasi contract
a contract implied in law, is a contract that is imposed by law to prevent unjust enrichment
an agreement that can be enforced in court
requirements of a valid contract
1. agreement
2. consideration
3. contractual capacity
4. legality
the party to whom the offer is made
party making the offer
an assertion that something either will or will not happen in the future
the promise to whom the promise is made
the person making the promise
the parties must agree on the terms of the contract
a promise or commitment to perform or refrain from performing some specified act in the future
the offeror's act of withdrawing an offer
option contract
created when an offeror promises to hold an offer open for a specified period of time in return for payment(consideration) given by the offeree
a rejection of the original offer and the simultaneous making of a new offer
mirror image rule
requires that the offeree's acceptance match the offeror's offer exactly
a voluntary act by the offeree that shows assent, or agreement to the terms of an offer
mailbox rule
acceptance takes effect at the time the offeree sends or delivers the communication via the mode expressly or impliedly authorized by the offeror
usually defined as the value given in return for a promise
Voluntarily refraining from doing something, such as asserting a legal right. For example, a creditor may forbear on its right to collect a debt by temporarily postponing or reducing the borrower’s payments.
accord and satisfaction
a debtor offers to pay, and a creditor accepts, a lessor amount than the creditor originally claimed was owed
liquidated debt
a debt is liquidated if its amount has been ascertained, fixed, agreed on, settled or exactly determined
if the debt is liquidated accord and satisfaction cannot take place
a contract in which one party forfeits the right to pursue a legal claim against the other party
releases will generally be binding if they are :
1. given in good faith
2. stated in a signed writing
3. accompanied by consideration
covenant not to sue
the parties simply substitute a contractual obligation for some other type of legal actoin based on a valid claim
promissory estoppel
a person who has reasonably relied on the promise of another can often obtain some measure of recovery
barred or impeded from revoking. but there must be a clear and definite promise, the promisee must justifiably rely on the promise and the reliance normally must be of a substantial and definite characted
past consideration
actions or events that have already taken place do not constitute legally sufficient consideration
a remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made
contractual capacity
the legal ability to enter into a contractual relationship
occurs whena child's parent or legal guardian relinquishes the legal right to exercise control over the child
the legal avoidance, or setting aside, of a contractual obligation
basic needs
the act of accepting and giving legal force to an obligation that previously was not enforced
blue laws
laws that prohibit the formation or performance of certain contracts on sundays
employment contract
a contract stating the terms and conditions of employment
a court ordered correction of a written contract so that it reflects the true intentions of the parties
unconscionable contract
a contract or clause that is void on the basis of public policy because one party, as a result of disproportionate bargaining power, is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party
adhesion contracts
a standard form contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms
exculpatory clauses
clauses that release a party from a liability in the even of monetary or physical injury no matter who is at fault
blue sky laws
state laws that regulate the offering and sale of securities for the protection of the public
occurs when a lender makes a loan at an interest rate above the lawful maximum
bilateral mistakes
when both parties are mistaken about the same material fact
unilateral mistakes
when only one party is mistaken as to a material fact
guilty knowledge
forcing a party to enter into a contract because of the fear created by threats
collateral promise
a secondary promise that is one ancillary to a principal transaction or primary contractual relationship
prenuptial agreements
agreements made before marriage
parol evidence rule
if a court finds that a written contract represents the complete and final statement of the parties agreement
privity of contract
private agreement
the transfer of contract rights to a third person
assigning the rights to a third party
the party receiving the rights
the person to whom a duty or obligation is owed
the person who is obligated to perform the duty
the voluntary transfer of land ownership
delegation of duties
does not relieve the party making the delegation of the obligation to perform in the event that the party to whom the duty has been delegated fails to perform
conditions precedent
a condition that must be fulfilled before a party's promise becomes absolute
conditions subsequent
when a condition operates to terminate a party's absolute promise to promise
an unconditional offer to perform by a person who is ready, willing and able to do so
anticipation repudiation
before either party to a contract has a duty to perform, one of the parties may refuse to perform her or his contractual obligations
1. the existence of a previous, valid obligation
2. agreement by all parties to a new contract
3. the extinguishing of the old obligation
4. a valid new contract
compensatory damages
damages that compensate the nonbreaching party for injuries actually sustained
consequential damages
damages resulting from special circumstances beyond the contract itself; the damages flow only from the consequences of a breach
punitive damages
damages awarded to punish the breaching party
nominal damages
damages in small amount that are awarded when a breach has occurred but no actual injury has been suffered
liquidated damages
damages that may be specified in a contract as the amount as the amount to be paid to the nonbreaching party in the event the contract is breached in the future.