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31 Cards in this Set
- Front
- Back
In which theory of contract law did parties have to exchange things of equal value?
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Equity Theory
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Which theory of contract law focused on whether each party exercised free will in entering into the contract regardless whether the terms of the contract were fair?
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Will Theory
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Which theory of contract law concentrated on the form or structure of the agreement?
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Formalist Theory
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What do we call any agreement enforceable by law?
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A contract
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What six elements must a contract have to be legally binding?
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Offer, Acceptance, Genuine Agreement, Consideration, Capacity, Legality
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An agreement that is not legally binding
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A Void contract
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A valid contract in which a party to the contract is able to void or cancel the contract legally.
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Voidable Contract
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A contract that the courts will not uphold or enforce, usually because it violates some law
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Unenforceable Contract
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A restriction on the time period that a person can file a lawsuit.
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Statute of Limitations
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A contract that is stated in words.
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Express Contract
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A contract that comes about from the actions of the parties often without a written oral agreement.
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Implied Contract
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An agreement that contains 2 promises (one from each party)
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Bilateral Contract
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A contract that contains a promise by only one person if and when the other party performs some act
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Unilateral Contrat
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A contract in which the terms have been agreed to by oral communication
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Oral Contract
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A contract in which the terms of the contract are written down
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Written Contract
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The person making the offer
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Offeror
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The person who receives the offer
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Offeree
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What are the three requirements of an offer?
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Serious Intent, Definite and Certain, Communicated to the offeree
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An offer must be made with the intention of entering into a legal obligation (not in anger, jest, or terror)
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Serious Intent
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The law does not care what is in the mind of the person making an offer, but rather what is the appearance of this person's intent
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"Test of a Reasonable Person"
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Information communicated in advance without indicating an intent to enter into a contract
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Preliminary Negotiations
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Newspaper ads, price tags, sale price signs are not offers but rather they are ...
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Invitations to Negotiate
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What are the three requirements of a legally binding acceptance?
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1. Acceptance must be unconditional
2. Acceptance must be made by the person to whom the offer was made 3. Acceptance must be communicated to the offeror |
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What is the "mirror image rule"?
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The acceptance must not change the terms of the original offer in any way
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When does an oral acceptance become effective?
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The moment the words are directly communicated to the offeror
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When does a long distance acceptance become effective?
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When it is handed over to the "sending agency"
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What are the 5 ways that an offer may be terminated?
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Revocation, Rejection, Counteroffer, Expiration of Time, Death or Insanity
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What do we call the taking back of an offer before it is accepted?
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Revocation
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What do we call the refusal of an offer by an offeree that brings an offer to an end?
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Rejection
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What do we call it when an offeree rejects the original offer and creates a new offer?
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Counteroffer
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What do we call a binding agreement to hold an offer open for a specified period of time?
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Option
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