Chapter 8
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Created by:
thechawking on March 21, 2012
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52 terms
Terms | Definitions |
|---|---|
 acceptance | A voluntary act by the offferee that shows assent, to the terms of an offer |
| agreement | Includes and offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms |
| bilateral contract | A promise for a promise |
| Promise | An assertion that something either will or will not happen in the future |
| Contract | An agreement that can be enforced in court |
| Promisor | The person making the promise |
| Promisee | The person to who the promise is made |
| Objective theory of contracts | A theory under which the intent to form a contract will be judge by outward, objective facts( What the party said when entering into the contract, how the party acted or appeared, and the circumstances surrounding the transaction) as interpreted by a reasonable person, rather than by the party's own secret, subjective intentions |
| Consideration | Any promises made by the parties must be supported by legally sufficient and bargained for ________?(Something of value recieved or promised to convince a person to make a deal) |
| Contractual Capacity | Both parties entering into the contract must have the _____ _______ to do so. Competence is looked at to affirm this |
| Legality | The contracts purpose must be to accomplish some goal that is legal |
| Voluntary Consent | The apparent consent of both parties must be genuine |
| Form | The contract must be in whatever _____ the law requires |
| Offeror | Is the party making the offer |
| Offeree | The party to whom the offer is made |
| Bilateral Contract | A type of contract that arises when a promise is given in exchange for a return promise(promise for a promise) |
| Unilateral Contract | A contract that results when an offer can be accepted only by the offeree's performance (promise for an act) |
| Revocation | The attempt to cancel the offer before the other person performs the act |
| Formal Contract | A contract that by law requires a specific form, such as being executed under seal, for its validity (examples checks, drafts, promissory notes, and certificates of deposit) |
| Informal Contracts | A contract that does not require a specified form or formality to be valid |
| express contract | A contract in which the terms of the agreement are stated in words, oral or written |
| Implied in fact contract | A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract) |
| Executed Contract | A contract that has been completely performed by both parties |
| Executory Contract | A contract that has not yet been fully performed |
| Valid Contract | A contract that results when the elements necessary for contract formation(agreement, consideration, legal purpose, and contractual capacity) are present |
| Voidable contract | A contract that may be legally avoided at the option of one or both of the parties |
| Unenforceable Contract | A valid contract rendered unenforceable by some statute or law |
| Void Contract | A contract having no legal force or binding effect |
| Quasi Contract | A fictional contract imposed on the parties by a court in the interest of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of the other |
| Offer | A promise or commitment to perform or refrain from performing some specified act in the future |
| Revocation | In contract law, the withdrawal of an offer by an offeror. Unless the offer is irrevocable. |
| Irrevocable Offers | A contract under which the offeror cannot revoke the offer for a stipulated time period. |
| Option Contract | Is created when an offeror promises to hold an offer open for a specified time period in return for a payment given by the offeree (A type of irrevocable offer)` |
| Counteroffer | An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer |
| Mirror Image Rule | A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed |
| Lapse of time | An offer terminates automatically by law when the period of time specified in the offer has passed |
| Destruction of subject matter | An offer is automatically terminated if the specific subject matter of the offer is destroyed before the offer is accepted |
| Death or Incompetence | An offeree's power of acceptance is terminated when the offeror or offeree dies or is deprived of legal capacity to enter into a contract |
| Mailbox Rule | A rule providing that an acceptance of an offer becomes effective on dispatch, if mail is, expressly or impliedly, an authorized means of communication of acceptance to the offeror |
| e-contract | A contract that is formed electronically |
| Preexisting Duty | A promise to do (or refrain from doing) What one already has a legal duty to do(or refrain from doing) generally does not constitute sufficient consideration |
| Ratification | Accepting and giving legal force to a contract |
| Record | According to the Uniform Electronic Transactions act, information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable |
| Forbearance | The act of refraining from an action that has legal right to undertake |
| Rescission | A remedy whereby a contract is canceled and the partier are returned to the positions they occupied before the contract was formed |
| Past Consideration | An act that takes place before the contract is made and that ordinarily, by itself, cannot be consideration for a later promise to pay for the act (not enforceable) |
| Accord and Satisfaction | A common means of settling a disputed claim, whereby a debtor offers to pay a lesser amount than the creditor purports to be owed |
| Accord | Agreement |
| Liquidated Debt | A debt for which the amount has been ascertained, fixed, agreed on, settled, or exactly determined. |
| Release | A contract in which one party forfeits the right to pursue a legal claim against the other party |
| Covenant not to sue | An agreement to substitute a contratual obligation for some other type of legal action based on a valid claim |
| Promissory Estoppel | A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise. |
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