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28 Cards in this Set
- Front
- Back
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Mirror image rule
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Rule of contract law providing that the acceptance of an offer cannot change or add to the terms of the offer.
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Contract
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An agreement between two or more persons that is enforceable by law.
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4 elements that must be in a contract in order for it to be considered valid.
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Mutual Consent, Consideration, capable parties, and legal subject matter.
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Mutual Consent
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Both parties must consent to the same terms. The agreement can be express or it can be implied by the conduct of the parties.
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Mailbox Rule
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A rule that determines the effective date of an acceptance when the acceptance is mailed. (Assumming the offer allows for acceptance by mail, the acceptance is effective and the contract formed when mailed with proper postage and correct address).
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Consideration
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All contracts mus be supported by consideration. Each party to the contract must give up something. In many contracts the consideration for the contract is the promise to do something. When a promise lacks consideration it is considered a gift.
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Bilateral contract
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Where both parties make promises.
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rescind
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To undo a contract usually when the contract is voidable.
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Capable Parties
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contracting parties are generally required to be adults of sound mind or mentally capable. Mental capacity or sound mind requires that individuals understand the nature of their actions. Lack of mental capacity to enter into contracts can be temporary such as with an individual who is too drunk to know what he or she is doing.
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Voidable Contract
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A contract that is enforeable until the parties lacking capacity or their representative act to disaffirm or recind the contract. A void contract is one that is never enforceable.
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Legal Subject Matter is one of the requirements for a contract to be enforceable, what does this mean?
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No court will enforce a contract between parties where the subject matter of the contract is illegal.
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Statute of Frauds
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A law based on English common law requiring certain types of contracts be evidenced by a writing. The writing can be a written memorandum of the essential terms (handwritten or typed), only needs to be signed by the party to be charged.
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Integration Clause
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A clause in a contract that indicates that the contract is meant to embody all of the terms of the parties agreement.
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Parol evidence rule
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limits the types of evidence that can be used to prove the terms of the agreement. This rule provides that if the parties have a written agreement that is intended to be a complete expression of their agreement, then written or oral evidence of prior or contemporaneous agreements is not admissible.
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What are 5 potential legal remedies in contract law?
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Compensatory
Consequential: Liquidated:A contractual provision that determines in advance the measure of damages if a party breaches the agreement. Nominal: Trifling Punitive: Punishment for Breech |
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What are the two types of remedies for breach of contract?
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Legal or Equitable
Note: you may only use one of the remedies, not both, either you go for Legal remedies or equitable remedies. |
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What are types of Equitable Remedies?
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Specific Performance
Restitution Reformation Recission Injunction quasi/implied |
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Specific Performance
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Requires Contract to be upheld to the specific promise in contract.
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Restitution
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"Restore" Return the consideration.
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Reformation
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Reform or re-draft contract.
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Recission
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End contract as if there was no contract
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Injunction
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A court order commanding or preventing an action.
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quasi/implied by law
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A legal doctrine that allows the court to treat a certain situation as if a contract exists, even when one of teh elements to the formation of the contract may be missing(usually mutual assent).
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Mitigation of damages doctrine
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The principle of requiring a plaintiff after a breach of contract to make reasonable efforts to alleviate the effects of the injury or breach. The parties must do something to try to remedy the situation.
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Assignment
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Transfer of ones right under contract. (example of this is a sub lease on an apartment). Note: the assignment must be agreed upon, or accepted. This is true of delegation to. You can assign a benefit or burden.
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When federal and state laws regulate certain types of contracts, what is generally required and what types of contracts usually fall in this catagory?
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Often contracts dealing with consumer rights. These laws usually require that the contract be in writing and unlike the Statute of Frauds, contain very specific requirements for the writing. A memorandum containing the essential terms does not meet these requirements. Also, these statutes frequently give the consumer a right to recind or reject the contract within a certain time frame (i.e. 3 days when you buy a home).
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Arbitration
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An out of court hearing before a neutral party who listens to two or more disputing parties and renders a decision resolving the dispute.If both parties agree, any dispute can be resolved through an arbitration proceeding rather than a courtproceeding.
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UCC
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Uniform Commercial Code. A uniform set of laws dealing with contracts for the sale of goods; adopted by most states.
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