Shared Flashcard Set

Details

Business law
Chapter 9 Test 3
28
Accounting
Undergraduate 1
11/02/2010

Additional Accounting Flashcards

 


 

Cards

Term
contract
Definition
an agreement that is enforceable by a court of law or equity.
Term
Without enforceable ______________, commerce would collapse.
Definition
contracts
Term
The terms of the contract become ____________ between the parties.
Definition
private law
Term
Legally Enforceable Contract
Definition
If one party fails to perform as promised, the other party can use te court system to enforce the contract and recover damages or other property.
Term
Every contract involves at least 2 parties:
Definition
-Offeror: the party who makes an offer to enter into a contract.
-Offeree: the party to whom an offer to enter into a contract is made.
Term
To be an enforceable contract, 4 basic requirements must be met:
Definition
Agreement
Lawful Object
Consideration
Contractual Capacity
Term
Agreement
Definition
This requires an offer but the offeror and an acceptance by the offeree. There must be mutual assent by the parties.
Term
Consideration
Definition
The promise must be supported by a bargained-for consideration that is legally sufficient. Gift promises and moral obligations are not considered supported by valid consideration.
Term
Contract Capacity
Definition
The parties to a contract must have contrapuntal capacity.
Certain parties, such as persons adjudged to be insane, do not have contractual capacity.
Term
Lawful Object
Definition
The object of the contract must be lawful. Contracts to accomplish illegal objects or contracts that are against public policy are void.
Term
Defenses to the Enforcement of a contract are:
Definition
Genuineness of Assent & Writing and Form
Term
Genuineness of Assent
Definition
The consent of the parties to create a contract must be genuine. There is no real consent if the consent is obtained by duress, undue influnce, and fraud.
Term
Writing and Form
Definition
the law requires that certain contracts be in writing or in a certain form. Failure of this may be raised against the enforcement of the contract.
Term
Sources of Contract Law
Definition
-The common law of contracts: contract law developed primarily by state courts.
-The uniform commercial code (UCC): comprehensive statutory scheme that includes laws that cover aspects of commercial transactions.
Term
Express COntract
Definition
An agreement that is expressed in written or oral words.
Term
Bilateral Contract
Definition
A contract entered into by way f exchange of promises of the parties. "A promise for a promise."
Term
Unilateral Contract
Definition
A contract in which the offeror's offer can be accepted only by the performance of an act by the offeree. "A promise for an act."
Term
Implied-in-fact contract
Definition
a contract where agreement between parties has been inferred from their conduct.
Term
Implied-in-law contracts/Quasi-Contracts
Definition
Allows a court to award monetary dmages to a plaintiff for providing work or services to a defendant even though no actual contract existed between parties.
Term
Formal contract
Definition
contracts that require a special form or method of creation. ie: contracts under seal, negotiable instruments and letters of credit.
Term
informal contract
Definition
no special form or method is required for their creation. Fully enforceable and may be sued upon if breached. ie: leases, sales contracts, and service contracts.
Term
valid contract
Definition
contract that meets all the essential elements to establish a contract. Enforceable by at least one of the parties.
Term
void contract
Definition
a contract that has no legal effect. Neither party is obligated to perform. Neither party con enforce the contract.
Term
voidable contract
Definition
contract where one or both parties have the option to avoid their contractual obligations. If a contract is avoided, both parties are released from theor contractual obligations.
Term
unenforceable contract
Definition
a contract where the essential elements to create valid contract are met. However, there is some legal defense to the enforcement of the contract.
Term
Executed Contract
Definition
a contract that has been fully performed on both sides. A completed contract.
Term
Executory Contract
Definition
A contract that has not been fully performed by either or both sides.
Term
Equity
Definition
A doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law.
Supporting users have an ad free experience!