Term
| Standardized Form Contracts |
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Definition
| Contracts that are not negotiated, but are printed up ahead of time |
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Definition
| Contracts were enforeced because they were the product of the free will of the people who entered into them. |
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Term
| What role did the government play in contract law in the 19th century? |
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Definition
| Courts and government stayed out of the area of contract law |
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Term
| How did govt.'s role toward contract law change in the 20th century? |
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Definition
| Dramatic increase in government regulation of privte contracts |
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| Refers to a high risk that the contract will be grossly unfair or one-sided |
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Term
| What is the general rule regarding contracts? |
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Term
| What are the 4 basic elements of a contract? |
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Definition
| Voluntary Agreement (offer and acceptance), consideration, capacity |
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| Something of benefit given by every party to the contract to every other party |
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| every party is qualified to enter into a contract |
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| Only one party makes promise (ex. Airline) |
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| Both parties make promise to each other (ex. Employment) |
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| Needs all 4 basic requirements for a binding contract and is therefore enforceable in court |
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| Meets all 4 basic requirements for a valid contract, but for some other reason is unenforceable |
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Definition
| One or more parties has the right to cancel his or her obligation under the contract |
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| Who has the option to make a voidable contract void? |
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| Agreement that creates no legal obligations for which no relief can be provided by a court with a breach of it |
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| Parties have directly stated the terms of their contract orally or in writing |
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Term
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Definition
| Parties do not terms of contract, but the terms can be implied (ex. Dentist's reasonable care) |
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| All parties have fully performed their duties under the contract |
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| Contract that has not been fully executed yet |
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Term
| 2 Basic Sources of law for all contracts |
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| tangible, moveable, personal property |
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| deals with sale of goods and providing services |
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Term
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| Obligation to py for benefits you receve even if there is not a contract |
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Definition
| Someone makes a promise to you that they should expect you will rely on, you actually rely on it, and as a result there is injustice |
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Definition
| The person who makes the promise |
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Definition
| the person to whom the promise is made |
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Term
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Definition
| person who makes the offer |
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Term
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Definition
| Person to whom the offer is mde |
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Term
| 3 Requirements of an offer |
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Definition
| Present Intent, Specificity in terms, Communication to the offeree |
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Term
| Since mid 19th century, what approach do courts use to know if there is intent to make an offer? |
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Definition
| Objective Approach (Will audience view it as an offer?) |
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Term
| Modern rule regrding terms to the offer |
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Definition
| Only terms included are terms that the oferee has actual or reasonble notice of |
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Term
| When negotiation over the phone of face-to-face, how long does the offer remain open? |
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Definition
| Until the end of that session |
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Term
| When can an offer be revoked? |
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Definition
| At any time prior to acceptance |
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Term
| When is a revocation effective? |
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Definition
| Generally, only when received. |
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Term
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Definition
| an offer on terms that are materially different from the original offer, terminates original offer |
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Term
| When is a rejection effective? |
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Definition
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Term
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Definition
| A manifestation of assent by the offeree to the terms of the offer in the manner invited or required by the offer |
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Term
| What is the standard for judging intent of both offerror and offeree? |
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Definition
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Term
| Traditional mirror image rule |
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Definition
| Says you can only accept an offer on the exact terms of the offer itself (old rule) |
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Term
| What is the new rule regarding acceptance of the terms? |
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Definition
| There is a counteroffer only if the new or different terms are material (significant) |
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Term
| Ucc Rule regarding acceptance of terms of the offer? |
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Definition
| A definite and timely expression of acceptance creates a contract even if it includes terms that are different from those stated in the offer, or even if it states additional terms that the offer did not address |
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Term
| How do you accept a unilateral contract? |
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Definition
| Simply by performing the requested act. |
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Term
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Definition
| Acceptance is effective when sent, even if never received |
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Term
| How do you accept the offer for a bilateral (promise for a promise) contract? |
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Definition
| Make the promise that the offeror is requesting |
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Term
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Definition
| legal value bargained for and given in exchange for an act or a promise |
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Term
| What is the effect of an output contract? |
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Definition
| One party to the contract agrees to buy everything that the other party productes with regard to a particular commodity. |
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Term
| What is the effect of a requirement contract? |
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Definition
| One party agrees to supply another parties needs |
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Term
| Pre-existing public duties |
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Definition
| As a member of society you have duties (such as to obey the law) and if you agree to do something tht you are already required to do, then there is no agreement |
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Term
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Definition
| A debt that has no dispute about how much is owed and when it is due |
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Term
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Definition
| There is a dispute about how much is owed and when it is due, person and creditor disagree on charges |
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Term
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Definition
| Belief about a fact this is not in accord with the truth |
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Term
| Under what circumstance can you get out of a contract on the basis of mistake? |
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Definition
| The mistake has to be about the facts as they existed at the time that you entered into the contract as opposed to future facts |
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Term
| What is the effect of a mistake of law? |
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Definition
| You are allowed to get out of the contract, if you enter into a contract and afterwards discover that it is in accordance with an illegal activity. |
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Term
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Definition
| Assumption about identity, existence, quality, or quantity of the subject matter of the contract |
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Term
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Definition
| Other party caused the mistake or knew that you were making a mistake by entering into the contract |
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Term
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Definition
| One party induces the formation or modifiction of a contract by threatening another person's economic interests |
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Term
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Definition
| somebody physically forces you to sign the contract |
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Term
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Definition
| Wrongful pressure exerted in the bargain process through persuasion (as opposed to coercion as in duress) |
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Term
| What are the 4 types of contracts that must be in writing? |
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Definition
| Collateral contract, Contract for the sale of an interest in real estate, bilateral contract, contract fo the sale of goods worth $500 or more |
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Term
| What type of Contract is this: Person A (the guarantor) agrees to pay a debt or obligation that person B (principal debtor) owes to person C (the obligee), if person B fails to perform |
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Term
| In a situation where you need writing, do the entire contract have to be in writing? |
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Definition
| No, in most states you only need a memorandum of agreement (essential terms of the contract) |
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Term
| Do both parties have to sign a contract? |
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Definition
| No, only the defendant needs to sign in order for the writing to be sufficient |
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Term
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Definition
| you are old enough and you have mental ability to enter a contract |
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Term
| What are the 3 main groups of people who lack capacity? |
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Definition
| Minors (infants), Persons suffering from mental illness or defect, intoxicated people, |
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Term
| What does mental illness or defect include? |
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Definition
| Mental illness, brain damage, mental retardation, senility, and dementia |
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Term
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Definition
| the action taken by anyone lacking capacity to get out of the contract |
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Term
| What are 3 illegal contracts? |
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Definition
| Agreement that is declared illegal by statute, contract that violates public policy, contract with someone who is supposed to be licensed but is not |
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Term
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Definition
| provision which relieves the person who has written up the clause of liability |
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Term
| Procedural unconscionability |
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Definition
| Unfairness in the bargaining process |
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Term
| Substantive Unconscionability |
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Definition
| Unfairness of the contract terms |
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Term
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Definition
| pre printed, standardized form document where you are unable to negotiation the terms |
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Term
| What is an unreasonable restraint? |
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Definition
| Agreement that may lesson competition, has no potential consumer benefit, or harm to consumers is greater than benefit to consumers |
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Term
| What is one exmple of an unreasonable restraint of trade? |
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Definition
| Price fixing between horizontal competitors |
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Term
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Definition
| Power to control market prices or exclude competition |
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Term
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Definition
| monopolist prices below its cost to drive rivals from market, monopolist then raises price to recoup its losses and earn monopoly profits |
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Term
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Definition
| Prohibits discrimination in prices of tangible goods d to competing customers, prohibit discrimination in promotional allowances and services |
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Term
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Definition
| two completed sales of similar goods to competing customers at different prices |
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Term
| What does article 2 of the UCC pertain to? |
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Definition
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Term
| What missing terms can courts supply? |
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Definition
| Price, Quanity, Delivery, Time for Payment |
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Term
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Definition
| side deal that is a separate contract under which the offeror agrees not to revoke the primary offer for a specific period of time in exchange for consideration |
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Term
| 3 Requirements for Firm offer for sale of goods under UCC |
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Definition
| offer must be made by a merchant, offer is made in a signed writing, offer specifically says it will remain open |
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Term
| If it does not say, how long does a firm offer stay open under UCC? |
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Definition
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Term
| When is a revocation of offers made to the general public effective? |
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Definition
| when it is communicated (when sent) |
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Term
| If there is physical compulsion, is the contract void or voidable? |
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Definition
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Term
| If there is a threat of physical, emotional, or economic harm, is the contract void or voidable? |
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Definition
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Term
| You can get out of a contract if you are the victim of what 5 things? |
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Definition
| Misrepresentation, Fraud, Mistake, Duress, Undue Influence |
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Term
| What are 4 differences between UCC and common law? |
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Definition
| 1) Ucc is more flexible 2) UCC imposes a duty of good faith and fear dealing in the performance of every contract this is governed by the UCC, 3) UCC distinguishes between merchants and non merchants, 4) UCC has specific provision that deals with unconscionability |
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Term
| What 3 things must you show to win on prommisory estoppel theory? |
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Definition
| 1) The existence of a promise that the promissor should forsee is likely to induce reliance by the promissee, 3) Injustice as a result of the reliance |
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Term
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Definition
| Look at what the offerer actually intended by his statement |
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Term
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Definition
| Does not matter what offeror intended, but rather what kind of impression he left with his audience |
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Term
| When are ads conisdered offers? |
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Definition
| When they are specific enough about the # of units available and the price |
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Term
| How can you accept a reward offer? |
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Definition
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Term
| When does acceptance occur in Auctions? |
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Definition
| When auctioneer actually states that the goods have been sold |
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Term
| Under the law, how long does an offer remain open? |
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Definition
| For how long a reasonable person in the offeree's position think he or she had to accept the offer |
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Term
| 4 exceptions to revocation general rule: |
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Definition
| 1) Options, 2) OFfer for a unilateral contract, 3) Promissory Estoppel, 4) Firm offer for sale of goods |
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Term
| What are the 3 requirements for firm offer for sale of goods under UCC? |
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Definition
| 1) Offer must be made by a merchant, 2) Offer is made in a signed writing, 3) Offer specifically says it will remain open |
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Term
| Under UCC, what are the 4 factors to figure out whether acceptance was reasonable? |
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Definition
| 1) Speed and reliability of the means, 2) Nature of the transaction 3) Custom and practice in the industry, 4) Whether there are prior dealings between the parties |
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Term
| What are the exceptions to the silence rule? |
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Definition
| 1) There are prior dealings with the parties, 2) Offeree says if you don't hear from me in particular # of days that means acceptance, 3) Offeree accepts offer's performance knowing what the offerror expects in return |
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Term
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Definition
| one pursuant to which whoever is making the promise does not really commit himself to either do anything of refrain from doing anything |
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Term
| Exclusive dealing contract |
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Definition
| Manufacturer gives distributor promise of dealings |
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Term
| Under UCc, is additional consideration required to modify contract for sale of goods? |
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Definition
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