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76 Cards in this Set
- Front
- Back
- 3rd side (hint)
bilateral contract
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a promise for a promise
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voidable
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a contract that a party has the option of avoiding or enforcing
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executed contract
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a fully performed contract
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executory contract
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a contract not fully performed
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express contract
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formed by words(oral, written, or a combination)
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formal contract
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requires a special form for contract information
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implied-in-fact contract
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formed at least in part by conduct of the parties
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informal contract
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requires no special form for contract information
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void
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no contract exists, or there is a contract without legal obligations
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valid
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a contract that has the neccessary contractual elements of offer and acceptance consideration, parties with legal capacity, and a legal purpose
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unenforcable contract
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a valid contract that cannot be enforced because of a legal defense
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unilateral contract
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a promise for an act
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quasi contract
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a contract implied in law, is a contract that is imposed by law to prevent unjust enrichment
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contract
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an agreement that can be enforced in court
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requirements of a valid contract
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1. agreement
2. consideration 3. contractual capacity 4. legality |
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offeree
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the party to whom the offer is made
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offeror
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party making the offer
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promise
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an assertion that something either will or will not happen in the future
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promisee
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the promise to whom the promise is made
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promisor
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the person making the promise
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agreement
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the parties must agree on the terms of the contract
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offer
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a promise or commitment to perform or refrain from performing some specified act in the future
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revocation
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the offeror's act of withdrawing an offer
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option contract
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created when an offeror promises to hold an offer open for a specified period of time in return for payment(consideration) given by the offeree
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counteroffer
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a rejection of the original offer and the simultaneous making of a new offer
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mirror image rule
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requires that the offeree's acceptance match the offeror's offer exactly
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acceptance
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a voluntary act by the offeree that shows assent, or agreement to the terms of an offer
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mailbox rule
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acceptance takes effect at the time the offeree sends or delivers the communication via the mode expressly or impliedly authorized by the offeror
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consideration
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usually defined as the value given in return for a promise
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forbearance
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Voluntarily refraining from doing something, such as asserting a legal right. For example, a creditor may forbear on its right to collect a debt by temporarily postponing or reducing the borrower’s payments.
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accord and satisfaction
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a debtor offers to pay, and a creditor accepts, a lessor amount than the creditor originally claimed was owed
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liquidated debt
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a debt is liquidated if its amount has been ascertained, fixed, agreed on, settled or exactly determined
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if the debt is liquidated accord and satisfaction cannot take place
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release
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a contract in which one party forfeits the right to pursue a legal claim against the other party
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releases will generally be binding if they are :
1. given in good faith 2. stated in a signed writing 3. accompanied by consideration |
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covenant not to sue
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the parties simply substitute a contractual obligation for some other type of legal actoin based on a valid claim
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promissory estoppel
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a person who has reasonably relied on the promise of another can often obtain some measure of recovery
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estopped
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barred or impeded from revoking. but there must be a clear and definite promise, the promisee must justifiably rely on the promise and the reliance normally must be of a substantial and definite characted
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past consideration
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actions or events that have already taken place do not constitute legally sufficient consideration
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rescission
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a remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made
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contractual capacity
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the legal ability to enter into a contractual relationship
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emancipation
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occurs whena child's parent or legal guardian relinquishes the legal right to exercise control over the child
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disaffirmance
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the legal avoidance, or setting aside, of a contractual obligation
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necessaries
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basic needs
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ratifaction
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the act of accepting and giving legal force to an obligation that previously was not enforced
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blue laws
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laws that prohibit the formation or performance of certain contracts on sundays
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employment contract
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a contract stating the terms and conditions of employment
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reformation
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a court ordered correction of a written contract so that it reflects the true intentions of the parties
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unconscionable contract
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a contract or clause that is void on the basis of public policy because one party, as a result of disproportionate bargaining power, is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party
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adhesion contracts
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a standard form contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms
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exculpatory clauses
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clauses that release a party from a liability in the even of monetary or physical injury no matter who is at fault
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blue sky laws
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state laws that regulate the offering and sale of securities for the protection of the public
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usury
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occurs when a lender makes a loan at an interest rate above the lawful maximum
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bilateral mistakes
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when both parties are mistaken about the same material fact
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unilateral mistakes
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when only one party is mistaken as to a material fact
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scienter
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guilty knowledge
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duress
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forcing a party to enter into a contract because of the fear created by threats
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collateral promise
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a secondary promise that is one ancillary to a principal transaction or primary contractual relationship
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prenuptial agreements
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agreements made before marriage
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parol evidence rule
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if a court finds that a written contract represents the complete and final statement of the parties agreement
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privity of contract
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private agreement
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assignment
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the transfer of contract rights to a third person
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assignor
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assigning the rights to a third party
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assignee
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the party receiving the rights
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obligee
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the person to whom a duty or obligation is owed
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obligor
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the person who is obligated to perform the duty
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alienation
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the voluntary transfer of land ownership
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delegation of duties
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does not relieve the party making the delegation of the obligation to perform in the event that the party to whom the duty has been delegated fails to perform
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conditions precedent
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a condition that must be fulfilled before a party's promise becomes absolute
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conditions subsequent
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when a condition operates to terminate a party's absolute promise to promise
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tender
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an unconditional offer to perform by a person who is ready, willing and able to do so
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anticipation repudiation
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before either party to a contract has a duty to perform, one of the parties may refuse to perform her or his contractual obligations
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novation
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1. the existence of a previous, valid obligation
2. agreement by all parties to a new contract 3. the extinguishing of the old obligation 4. a valid new contract |
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compensatory damages
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damages that compensate the nonbreaching party for injuries actually sustained
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consequential damages
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damages resulting from special circumstances beyond the contract itself; the damages flow only from the consequences of a breach
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punitive damages
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damages awarded to punish the breaching party
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nominal damages
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damages in small amount that are awarded when a breach has occurred but no actual injury has been suffered
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liquidated damages
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damages that may be specified in a contract as the amount as the amount to be paid to the nonbreaching party in the event the contract is breached in the future.
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