| Term | Definition |
|---|
| a contract is a voluntary exchange of promises, creating obligations which, if defaulted, can be enforced and remedied by the courts; primary concern of the courts is to enforce the reaonsable expectations of the parties | contract law |
| consensus, consideration, capactiy, legality, intention, writing | ingrediencts of a contract |
| a meeting of the minds of contracting parties- share an understanding of the bargain struck, be willing to commit themselves to terms, terms must be unambiguous, failure to read a contract is no excuse... comprised of offer and acceptance | consensus |
| must contain: all terms of the contract, a communication of willing ness to be bound, terms of offer must be clear | offer |
| an invitation to the general public to engage in bargaining process .... advertisements or sales promotions are not binding offers, articles displayed for sale are not offers but merely invitations for customers to offer to pay the price of the item | invitation to treat |
| an offer must be communicated, disclaimers of resposibilit must be posted in plain sight or printed on back of tickets, only the person or group to whom offer is made can accept it | communication of an offer |
| offer ends at a specified time or after a reasonable time if not specificed, at the death or insanity of offeror, when it is revoked before acceptance and the revocation is communicated to offeree, when offer is rejected or counteroffer is put forware | end of an offer |
| must be unconditional: must not specify any new terms, court will interpret any ambiguities in the offer to give effect to the intentions of the parties, will not overcome the defect of an incomplete or defective offer | acceptance |
| usually by communication to the offeror, sometimes by conduct, by performance of the act stipulated in offer, silence is not acceptance unless part of ongoing business relationship, note negative option schemes | communication of acceptance |
| when acceptance is mailed, it is effective when and where it is posted, rule applies only when response by mail is appropriate, new methods of communication makes the expansion of the postbox rule unnecessary | postbox rule |
| the price one is willing to pay for a promise, all parties must derive some benefit from the deal | consideration |
| consideration must be specfic- not necessarily money, legal, resonable, in the present, one sided promises not enforceable, exception promissory estoppel | consideration 2 |
| need not be fair, but unfair consideration may indicate insanity or fraud; must be specific, the price for the product or service must be stated or a reasonable price will be implied, existing duty- a change in the contract requires new consideration | adequacy of consideration |
| paying less to satisfy a debt, settlement outside court, request for services, promissory estoppel, sealed documents | exceptions |
| infants are under age of majority usually 19, necesssaries, fair price, exception-beneficial contracts of service, adults bound, ratification | capacity- infants |
| insanity- person claiming insanity must show no understanding, other person knew or should have known of sanity... repudiate when sane .. Drunk- treated like insanity | capactiy 2 insanity |
| native indians, corporations (crown bodies may be limited by legislation, enemy aliens, unions, bankrupts, government bodies | capacity 3 |
| object of agreement must be legal: 1. not contrary to law (eg. drug deals) 2. not against public policy (eg. prostitution)... if contract is illegal or against public policy : contract is void, court won't assist either party | legality |
| protects reasonable expectations or intentions clearly stated in contract, intention presumed in commercial relationships, no intention presumed in social or domestic relationships, reasonable person test applied in cases of exaggerated claims | intention |
| verbal contracts are binding/ statute of frauds reqruies written evidence of contracts that are: longer than one year, for land transactions, guarantees, promises in consideration of marriage, values of goods exceeds specificed minimum | form of the contract |
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