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MGMT 212
Nature & Terminology of Contracts (chapter 10)
19
Management
Undergraduate 2
06/16/2009

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Term
4 Major Elements of a Contract
Definition
Agreement, Consideration, Capacity, Legality
Term
Agreement
Definition
the mutual assent and agreement of the parties must be evidenced by an offer and an acceptance
Term
Consideration
Definition
legally sufficient and bargaind-for consideration must be exchanged for contractual promises
Term
Contractual capacity
Definition
each party to a contract must be recognized as being legally competent to enter into contracts
Term
Legality
Definition
the purpose and subject matter of the contract must not be contrary to law or public policy
Term
2 Defenses to the enforceability of a contract
Definition
1.) Genuineness of assent: one party didn't understand. 2.) The way the contract is actually written up.
Term
Objective theory of contracts, 3 objective factors
Definition
The apparent intention of a party to enter into a contract is determined by the objective, outward manifestation of his/her assent as it would be interpreted by a reasonable person. 1.) Actions. 2.) Words. 3.) Circumstances.
Term
Bilateral Contract
Definition
A promise for a promise. "If you promise to paint my fence, I promise to pay you $50."
Term
Unilateral Contract, traditional & modern view of revocation
Definition
promise for an act. "If you paint my fence, I promise to pay you $50." Traditional: if offeror revokes during performance, offeree gets nothing. Modern: Offeree gets percentage of work completed.
Term
Express contract
Definition
the terms of the agreement are fully and explicitly stated in oral or written words.
Term
implied contract
Definition
the terms of the agreement are inferred from the conduct of the parties. 1.) P furnished a service/good. 2.) P expected to be paid & D knew/should have know to pay. 3.) D had a chance to reject services/goods but didn't.
Term
quasi-contract
Definition
Contract implied in law. Fictional contract imposed by court to prevent unjust enrichment of one party at the expense of another.
Term
2 Limitations on the doctrine of quasi-contract
Definition
1.) The person receiving the benefit is not liable in quasi-contract when the benefit was conferred unnecessarily or conferred b/c of misconduct or negligence. (Example of taking car to car wash). 2.) The doctrines are not applied if there is already a contract (either expressed or implied). An amendment should have been made to the prior contract.
Term
Formal contract v. informal contract
Definition
formal: a special formality is prescribed. informal: simple contract, for which no special formality is required.
Term
executed contracts v executory contracts
Definition
executed: full performance. Executory: less than full performance by any party.
Term
valid, void, voidable
Definition
valid: all elements are present. void: agreement has no legal effect and is not really a contract. No legal obligation exists for either part. voidable: valid contract, but one or more of the parties can avoid his/her contractual obligations. Party can void or ratify.
Term
unenforceable contract
Definition
a valid contract that cannot be proven in the manner required by law
Term
the "plain meaning" rule
Definition
when the words used in a writing are plain, clear, unequivocal, and unambiguous, thier meaning will be determined from the face of the written document alone.
Term
pg 55 in notebook
Definition
read that shiz
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