Term
| List the elements of a contract. |
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Definition
The following are the elements of a contract:- Agreement
- Capacity to contract
- Consideration
- Legal Purpose
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Term
| Can a party that is not in privity of contract ever sue for a breach of the contract? |
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Definition
| Ordinarily, a party cannot sue for breach of contract without being in privity of contract (unless that person is a third-party beneficiary of the contract). |
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Term
| Are implied contracts actual agreements between the parties? Explain. |
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Definition
| Yes, implied contracts are agreements that are intended by parties, either by assumption or tacitly, even though the parties might not have expressed their agreements explicitly. |
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Term
| List the elements of an offer. |
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Definition
The following are the elements of an offer:- Intent to contract
- Definite terms
- Communication to offeree
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Term
| Are advertisements offers? Explain. |
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Definition
| Advertisements are not offers; they are invitations to negotiate or to make offers, expressing no present intent to contract. |
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Term
| How does a court determine reasonable certainty to determine whether an offer exists? |
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Definition
| To determine reasonable certainty, a court may ask whether an offer's terms are clear enough to provide a basis for a remedy if default occurs. |
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Term
| List five factors regarding duration and termination that are key to determining whether an offer is binding. |
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Definition
| The following five factors regarding duration and termination are key to determining whether an offer is binding: |
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Term
| List the elements of acceptance. |
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Definition
The following are the elements of acceptance:- The acceptance must be made by the offeree.
- The acceptance must be unconditional and unequivocal.
- The offeree must communicate the acceptance to the offeror by appropriate word or act.
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Term
| Can silence ever be acceptance? |
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Definition
| No, an offeree's silence cannot be acceptance. |
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Term
| Identify parties that might be incompetent to contract. |
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Definition
Parties that might be incompetent to contract include the following:- Minors
- Insane persons
- Intoxicated persons
- Artificial entities
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Term
| What are minors' rights and duties under their contracts? |
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Definition
| The law protects minors from disposing of their property while they are underage. Generally, a minor can assert minority as a defense against liablity in contracts, except those involving the purchase of necessaries. |
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Term
| What are the rights and duties of parents under minors' contracts? |
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Definition
| Parents are generally not liable for minor children's contracts unless a parent cosigns, the child has acted on the parent's behalf or at the parent's direction, or a parent has neglected or refused to pay for necessaries for the minor. |
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Term
| What are insane persons' rights and duties under contracts? |
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Definition
| Any agreement entered by a person adjudged by a court to be insane is void, except for a contract for necessaries. A contract by a person who claims to be insane, but has not been judged so by a court, is voidable under certain conditions. |
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Term
| Under what circumstances will intoxication allow a party to avoid a contract? |
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Definition
| An intoxicated person can avoid a contract if the person did not know a contract was forming or did not understand the legal consequences of acts purporting to form the contract. |
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Term
| Can an insurer avoid a contract entered into in a state in which the insurer is unlicensed? |
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Definition
| Policies sold by insurers not licensed to do business in a state are enforceable against them. |
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