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BLAW 310 Chapter 12 & 13

Terms in this set (41)

Contract law
_____ comes into play in deciding when promises can be enforced or not.
agreement, consideration, contractual capacity, and legality
What are the four requirements that must be met before a valid contract exists?
If any of these elements is lacking, no contract will have been formed.
agreement; counteroffer
An ____ to form a contract includes an offer and an acceptance. One party must offer to enter into a legal _, and another party must accept the terms of the offer.
What is something that can come from this?
consideration
Any promises made by the parties to the contract must be supported by legally sufficient and bargained-for _____ (something of value received or promised, such as money, to convince a person to make a deal).
contractual capacity
Both parties entering into the contract must have the _____ to do so. The law must recognize them as possessing characteristics that qualify them as competent parties. (Have to be of legal age (18); have to have a mental understanding of what you are engaging in)
legal
The contract's purpose must be to accomplish some goal that is ___ and not against public policy.
two
Every contract involves how many parties?
voluntary consent and form
Two requirements that are typically raised as defenses to the enforceability of a contract are?
voluntary consent
If a contract was formed as a result of fraud, undue influence, mistake, or duress, the contract may not be enforceable due to the lack of ______.
bilateral contract
What type of contract is a "promise for a promise"
bilateral contract
This type of contract is formed at the moment the promises are exchanged; no performance, such as payment of funds or delivery of goods, need to take place for this type of contract to be formed.
unilateral contract
What type of contract is a "promise for an act"
unilateral contract
This type of contract is formed not at the moment when promises are exchanged but at the moment when the contract is performed.
executed; executory; executory
If one party has fully performed but the other has not, the contract is said to be ____ on the one side and ____ on the other, but the contract is still classified as ____.
mistake of fact
Which is the only type of mistake that makes a contract voidable?
unilateral
A ____ mistake is made by only one of the parties
bilateral
A _____ mistake is made when both parties are mistaken about the same material fact.
value
If a mistake concerns the future market value or quality of the object of the contract, the mistake is one of ____, and the contract normally is enforceable
fraudulently induced
When an innocent party is ____ to enter into a contract, the contract normally can be avoided because that party has not voluntarily consented to its terms.
fraudulent misrepresentation
____ refers to misrepresentation that is consciously false and is intended to mislead another.
duress
The use of threats to force a party to enter into a contract is referred to as what?
breach of contract
A ____ is the nonperformance of a contractual duty.
material breach
Any breach entitles the non-breaching party to sue for damages, but only a ________ discharges the non breaching party from the contract
material
When there is a _____ breach, the non breaching party is excused from the performance of contractual duties. That party can also sue the breaching party for damages resulting from the breach.
minor
If the breach is ____, the non breaching party's duty to perform can sometimes be suspended until the breach has been remedied, but the duty to perform is not entirely excused.
compensatory, consequential, punitive, and nominal
The four types of damages that are available through contract law are?
compensatory
____ damages cover direct losses and costs.
consequential
____ damages cover indirect and foreseeable losses
punitive
____ damages are used to punish and deter wrongdoing.
nominal
____ damages are to recognize wrongdoing when no monetary loss is shown.
loss of the bargain
Damages that compensate the non breaching party for the _____ are known as compensatory damages.
compensatory damages
These damages compensate the injured party only for damages actually sustained and proved to have arisen directly from the loss of the bargain caused by the breach. They are said to "make the person whole." Courts will not award damages in an amount that leaves the non breaching party in a better position than he or she would have been if the contract had not been breached.
consequential damages
These damages are caused by special circumstances beyond the contract itself. They flow from the results of a breach.
consequential
When a seller fails to deliver goods, knowing that the buyer is planning to use or resell those goods immediately, a court may award ______ damages for the loss of profits from the planned resale.
consequential
For the non breaching party to recover ______ damages, the breaching party must have known (or had reason to know) that special circumstances would cause the non breaching party to suffer an additional loss.
punitive damages
Which type of damages generally are not awarded in lawsuits for breach of contract?
nominal damages
When no actual damage or financial loss results from a breach of contract and only a technical injury is involved, the court may award ______ to the innocent party. Awards of these damages are typically small.
duty to mitigate
When a breach of contract occurs, the innocent injured party is held to a ______, or reduce, the damages that he or she suffers.
equitable remedy
Sometimes, damages are an inadequate remedy for a breach of contract. In these situations, the non breaching party may ask the court for an _______.
specific performance
The equitable remedy of _____ calls for the performance of the act promised in the contracts.
specific performance
A court may grant _____ to a buyer in an action for a breach of contract involving the sale of land; or when someone is refusing the sell real estate.
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