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Acc 241 - Business Law
Midterm 2
117
Business
Undergraduate 3
10/18/2011

Additional Business Flashcards

 


 

Cards

Term
Legally Enforceable
Definition
One party fails to perform as promised, can use the court system to enforce the contract and recover damages.
Term
Contract
Definition
Is an agreement that is enforceable by a court of law or equity.
Term
Offeror
Definition
The party who makes an offer to enter into a contract.
Term
Offeree
Definition
The Party to whom an offer to enter into a contract is made.
Term
Elements of a Contract
Definition

1. Agreement

2. Consideration

3. Contractual Capacity

4. Lawful Object

Term
Defense to the Enforcement of a Contract
Definition

1. Genuineness of assent - the consent cannot be obtained by duress, undue influence, fraud

2. Writing and Form - must be in writing or proper form.

Term
Genuiness of assent
Definition
the consent cannot be obtained by duress, undue influence, fraud
Term
Evolution of Law Contracts
Definition

1. Laussez-faire

2. Classical Law of contracts

3. Uniform Commercial Code

 

Term

Common Law of Contracts

 

Definition
Developed from early court decisions that became for later decisions
Term
Restatement of the Law of Contracts
Definition

This is not a law.

A compilation of model contract law principles drafted by legal scholars

Term
Objective theory of contracts
Definition

A theory that says the intent to contract is judged by the reasonable person standard and not by the subjective of the parties.

1. the words and conduct of the parties

2. the surrounding circumstances

Term
Uniform Computer Information Transaction Act
Definition

A model act that establishes uniform legal rules for the formation and enforcement contracts and licenses.

- Not law until state adopts it as a statue

Term
Bilateral
Definition

A contract entered into by way of echange of promises of the parties.

 

Ex: If you promise to paint my store by July 1, I will pay you $3,000. He says, "I promise."

Term
Unilateral
Definition

A contraction in which the offeror's offer can be accepted only by the performance of an act by the oferee, "a promise for an act."

 

Ex: If you paint my shop by July i, I will pay $3,000.

- the offer can be accetped only by the painter's performance

Term
Incomplete or Partial Performance
Definition
Offeror in a unilateral cannot revoke if offeree has begun performance
Term
Formal Contracts
Definition

A Contract that rquires a special form or method of creation:

1. Negotiable Instruments

2. Letters of Credit

3. Recognizance

4. Contracts underseal

Term
Negotiable Isntruments
Definition
Checks, drafts, notes, deposits
Term
Letters of Credit
Definition
An agreement by the issuer of the letter to pay a sum of money upon the receipt of an invoice
Term
recognize
Definition
A party recognizes in court that the will pay a sum of $ if an event occurs
Term
Contract Under seal
Definition
No consideration is necessary if a contract is made under seal.
Term
Informal Contracts
Definition

A contract that is not formal. Valid Informal contracts are fully enforceable and may by sued upon breach.

-Misdemeanor

Valid informal contracts - lease, sale, service

 

Any words can be used in contracts

Term
Valid Contract
Definition

Meets all the essential elements to establish a contract; a contract that is enforceable by at least one of the parties.

Elements:

1. consists of an agreement

2. Legally sufficient consideration

3.contractual capacity

4. Accomplished a lawful object

Term
Void Contract
Definition

No legal effect - it is as if no contract was ever made. Neither party is obligate to perform party. Neither party can enforce the contract.

 

ex: commit a crime

 

Term
Voidable Contract
Definition

At least one party with the option to avoid his contractual obligations. If a contract is avoided, both aprties are released.

If the party with the option chooses to ratify the contract, both parties must fully perform their obligations.

Term
Unforceable Contract
Definition

All elements are met but there is some legal defense to the enforcement of the contract.

-contract is not in writing

- parties may voluntarily perform a contract that is unforceable

 

Term
Execute Contract
Definition
A completeed contract - both parties fully performed
Term
Executroy Contract
Definition
A contract that has not been performed by both parties or one side that has performed and the other side has not
Term
Express Contract
Definition

An agreement in oral or written words

ex: written agreement to buy and automobile

ex: oral to buy a neighbor's bike

Term
Implied-in-fact Contracts
Definition

Implied by conduct of parties:

1. Plaintiff provided property or services to the defendant

2. The plaintiff expected to be paid by the defendant and was not

3. The def was given the opportunity to reject the property, but failed to do so

 

ex: Taco Bell dog case

Term

Implied-in-law

-Quasi Contract

Definition

An equittable doctrine whereby a court may award monetary damages (reasonable value) to a plaintiff for providing work or services to a def even though no actual contract existed

-prevent unjust enrichment

-does not apply to enforceable

1. Person confers a benefit to another but does not pay it

2. unjust for person not to pay

 

Ex: Hether-car accident-coma-has to pay costs

Term
Equity
Definition
A doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law.
Term
Mutual Assent
Definition

One party makes an offer that is accepted by the other party

-without mutual assent, no contract

 

Term
Agreement
Definition
The manifestation by two or more persons of the substance of a contract
Term
Offer
Definition

Three elements:

1. Offeror must objectively intend to be bound by offer

2. the terms of the offer must be definite or reasonably certain

3. the offer must be communicated to the offeree

Term
Objective Intent
Definition

the intent is based off objective theory (judged by reasonable persons)

 

ex: I will buy your building for 2 million

-offeror's present intent to contract

Term
Express Terms
Definition

1. Identification of parties

2. Identification of subject

3. consideration to be paid

4. time of performance

Term
Implied Terms
Definition

A term in a contract that can reasonably be supplied by the courts

 

ex: time or price

Term
Advertisement
Definition
An invitation to make an offer, or an actual offer
Term

Rewards

 

Definition
An award for performance of some or attainment. To collect a reward, the offeree must (1) have knowledge of the reward offer prior to completing the requested act, (2) perform the requested act
Term
Auctions
Definition
Seller offers goods for sell
Term
Auction with reserve
Definition
Unless expressed an auction is an auction with reserve - an invitation to make an offer. Seller can refuse the highest bid and withdraw item.
Term
Auction without reserve
Definition
Has to be expressed. Seller must accept the highest bid and cannot withdraw
Term
Revocation of an offer
Definition

May be communicated to the offeree by the offeror or 3rd party

1. offeror written statement

2. an act of the offeror that is inconsistent with the offer

 

Term
rejection
Definition

Express words or conduct by the offeree that rejects an offer.

 

Rejection terminates the offer

Term
Counteroffer
Definition
in response to offer and terminates original offer
Term
An offer can be terminated by operation of Law
Definition

1) destruction of the subject matter

2)death or incompetency of the offeror or offeree

3)Supervening illegality

-offer made illegal prior to the acceptance of the offer

4) lapse of time

 

Term
Unequivocal Acceptance
Definition

Acceptance must be unequivocal

-mirror image rule: offeree must accept the terms stated

 

ex: grumbling acceptance is legal

An equivocal response is not a contract

Term
Silence as Acceptance
Definition
Silence is not acceptance
Term
Offer & Acceptance
Definition

Types of Communication                     effective when

offer                                            received by offeree

revocation                              received by offeree

rejection                          received by offeror

counteroffer                received by offeror

bilteral acceptance   dispatched by offeree

Term
Time of Acceptance
Definition
The acceptance of a bilteral contract occurs when the offeree dispatched the acceptance
Term
Mailbox Rule
Definition

Time of acceptance: when it is mailed, it could be lost and still exist

 

Offeror can state that the acceptance is effective only upon actual receipt of the acceptance

Offer is not accepted if it is not properly dispatched

Offeror that received rejection letter before agreement contract holds the first

Term
Mode of Acceptance
Definition

Acceptance must properly be dispatched: properly addressed, packaged, prepaid postage

 

Express authorization

Implied authorization

 

Term
express authorization
Definition
a stipulation in the offer that says the acceptance must be by specificed means of communication
Term
Implied authorization
Definition
Implied means of communication that is similar to usage of trade, or prior dealings between the parties
Term
Minors
Definition
Under the age of 18
Term
Infancy Doctrine
Definition

Allows minors to disaffirm most contracts they have entered into with adults.

- contract is voidable

Term
Disaffirm
Definition
A minor can expressly disaffirm a contract orally, in writing, or through conduct
Term
Minor's duty of restoration
Definition
A rule which states that a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in a time of disaffirmance
Term
Competent party's duty of restitution
Definition
A rule which states that if a minor has transferred money, property, or other valuables to the competent party before disaffirming the contract, that party must place the minor in status quo
Term
Ratification
Definition
The act that a minor after the minor has reached the age of majority by which he or she accepts entered into when he or she was a minor.
Term
Emancipation
Definition

The act or process of a minor voluntarily leaving home and living a part from his or her parents

 

Parents do not need to provide necessaries of life

Term
Necessaries of life
Definition
Food, clothing, shelter, medical care, and other items necessary to the maintenance of life
Term
legal insanity
Definition

A state of contractual incapacity as determined by law

1. adjudged insane

2. insane but not adjudged insane

Term
Adjudged insane
Definition

Declared legally insane by a proper court or administrative agency. A contract entered into by a person adjudged insane is void.

 

No contract exists

Term
Insane but not adjudged insane
Definition

Being insane but not having been adjudged insane by a court or an administrative agency. A contract entered into by such person is generaly voidable. Some states hold that such a contract is void.

Status quo

Term
Intoxicated persons
Definition

A person who is under cotractual incapacity because of ingestion of alcohol or drugs to the point of incompetence

-voidable - self-induced

The person to disaffirm if the contract was forced

Status quo

Term
Illegal Contracts
Definition

VOID

1. Contracts contrary to statutes

2. usury law - a law that sets an upper limit on the IR that can be changed on certain types of loans

3. contracts to commit crimes

4. gambling statutes - prohibit or regulate gambling, wagering, loterries, games of chance

5. Effect of Illegality - a doctrine which state that the courts will refuse to enforce or rescind an illegal contract and will leave the parties where it finds them

-innocent persons who were justifiably ignorant of the law or fact that made the contract illegal

6. in pari delicto - a situation in which both parties are equally at fault in an illegal contract

7. contracts contrary to Public policy - contract has negative impact on societ (immoral contract - a contract whose object is the commision of an act that society considers immoral)

Term
Contraction restraint of trade
Definition

A cotnract that unreasonably restrains trade

ex: Toyota, GM, Ford agree on fixed prices on automobiles - void contract

Term
Licensing Statute
Definition

Requires a person or busienss to obtain a license from the gov prior to engaging in a specified occupation or activity.

- regulatory statutes - a licensing statue enacted to protect the public

ex: CPA, JD

Term
Revenue Raising Statue
Definition

A licensing statute with the primary purpose of raising revenue for the gov

-annual licensing fee

ex: If lawyer has not paid, he can still recover for his services

Term
Exculpatory Clause
Definition

A contractual provision that relieves one or both of the parties to a contract from tort liability for ordinary negligence.

ex: parachute jumping contract

If you sued, court owuld enforce clause

 

Clauses affect public interest or result from superior bargaining power are void - illegal

Term
Covenant not to Compete
Definition
A contract which provides that seller of a business or an employee will not engage in a similar business or occupation within specified (1) line of business, (2) geography, (3) time
Term
Unconscionable Contracts
Definition

A contract that courts refuse to enforce im part or at all because it is so oppressive or manifestly unfair as to be unjust

1. parties possessed severly unequal bargaining power

2. dominating party unreasonably used its power to obtain oppressive or manifestly unfair contract terms

3. adhering party had not reasonable alternative

Term
Court rules for unconscionable contracts
Definition

1. refuse to enforce contract

2.refuse to enforce the unconscionable clause but enforce the remainder of the cotnract

3. limit the applicability of any unconscionable clause so as to avoid unconscionable result

Term
Contracts of Adhesion
Definition

preprinted forms whose terms the consumer cannot negotiate

 

ex: mortgages, leases

 

Term
Promissory Estoppel
Definition

Permits oral contracts if

1. promise induces action or forbearance of action by another

2. the reliance on the oral promise was forseeable

3. injustice can be avoided only by enforcing oral promises

Term
Exceptions to Parol Rule
Definition

Void or Voidable

Ambiguous

Concerns of dealings

Fills in gap

Corrects obvious errors

 

Term
Parol Evidence Rule
Definition
When a cotnract is finished, nothing can add to it in court
Term
Formality of writing
Definition

Required Sigs

Integration of serverl writings

- incorporation by reference

Interpreting contract words and terms

-glossary and standard of interpretation

Term
Part Performance
Definition
Performance is necessarily for partially performed for oral contracts to avoid injustice
Term
Equal Dignity Rule
Definition
Agents' contracts to sell property - writing
Term
Lease contracts
Definition
$1000 or more - writing
Term
Sale COntracts
Definition
Sale of goods for 500 or more - writing
Term
Main Purpose exception
Definition
An exception to the Statute which state that if the main purpose of a transaction and oral collateral contract it to provide pecuniary benefit to the guarantor
Term
Guaranty Contract
Definition

A promise in which one person agrees to answer for the debts or duties of another person. it is a contract between the creditor and the original creditor.

 

ex: credit card, car loan

Term
One-year Rule
Definition
A rule which states that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.
Term
Contracts involving real property
Definition
Mortgages, lease, life estate, easement
Term
Executory Contracts
Definition
It should be in writing based on the Statute of Frauds - if not, it is unenforceable
Term
Statute of Frauds
Definition
A statute that requires certain types of contracts to be in writing
Term
Crime Law
Definition
Accused must be found guilty beyond reasonable doubt - conviction requires a unamious vote
Term
Crime
Definition
A violation of a statue
Term
Penal Code & Regulatory Statutes
Definition

Statutes are the primary source of criminal Law

Penal Code - a collection of criminal statutes

Regulatory Statutes - laws

Term
Generally Imprisonment
Definition

1. incapaciatate the criminal so he or she will not harm society

2. provide a means to rehabilitate the criminal

3. deter others from similar acts

4. inhibit personal retribution by the victim

Term
Parties to a criminal action
Definition

Gov is plaintiff

Gov is represented by a prosecutor

Def & defense attorney

Gov defense attorney = free

Term
Felony
Definition
Are the most serious kinds
Term
Misdemeanor
Definition
less serious; mala prohibita - not inherently evil
Term
Violation
Definition
not felony or misdemeanor that is usually punishable by a fine
Term
Intent Crimes
Definition

1. criminal act (actus reus) - guilty act - performance

2. criminal intent (mens rea) evil intent

Term
Criminal Procedure
Definition

1. Arrest

2. Bond

3. Indictment or Information

4. Arraignment

5. Plea Bargaining

6. The Criminal Trial

Term
Exclusionary Rule
Definition
A rule that says evidence obtained from an unreasonable search can generally be prohibited from court
Term
Miranda Rights
Definition
Rights that a suspect must be informed of
Term
Money Laundering Control Act
Definition

A fed statute that makes it a crime to

1. knowlingly engage in a money transaction unlawful

2. knowingly engage in financial transactions of unlawful

Term
Double Jeoprady Clause
Definition
5th Amendment - protects criminals of being accused twice for crime
Term
Self-incrimination
Definition
A person being a witness against himself - 5th Amen protects you from this
Term
receiving stolen property
Definition

To: 1. knowlingly receive stolen property

2. intend to deprive the rightful owner of property

Term
Larceny
Definition
The taking of another's personel property other than from that property
Term
Hung jury
Definition
A jury that cannot make a unamious vote
Term
Plea Bargainning
Definition

An agreement in which the accuse admits to a lesser crime than charge

 

Term
Arraignment
Definition

A hearing during which the accused is brough before a court and is informed of charges and asked to enter a plea

 

Term
Information
Definition
The charge of having committed a crime (usually a misd) based judgement by judge
Term
indictment
Definition
The charge of having committed a crime (usually a felony) based on the judgment of a grand jury
Term
Bail Bond
Definition
Term
Arrest
Definition
A doc of a person's detainment
Term
non-intent crimes
Definition
A crime that imposes a criminal liability without a mens rea
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