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49 Cards in this Set
- Front
- Back
Contract |
voluntary exchange of promises between two or more entities- creates legal obligation that is enforceable in court |
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Offer, Acceptance, Consideration, Capacity, Legality
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What elements must be present in every contract? |
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Uniform Commercial Code |
regulates the sale of goods and other commercial transactions; banking |
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Unilateral contract |
when one party makes a promise in exchange for an act (reward in finding lost dog) |
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Bilateral contract |
created when the parties exchange mutual promises to do some future act -most contracts are this - Bob promises to sell his zebra, zoo promises to buy it |
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Express Contract |
one in which the parties spell out the specifics of their agreement in direct terms- may be written or oral (apt lease, bank loan, home purchase) |
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Implied-in-fact |
reasonable to infer that the parties intend to create a contract by their conduct (pick up a banana in the store and eat it) |
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Implied contract |
implied-in-law or quasi-contract; arises in order to prevent unjust enrichment (doctor provides care to unconscious patient, patient has to pay them when they wake up) |
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Valid contract |
satisfies all requirements of a binding and enforceable agreement |
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Voidable |
a contract is this if they have the legal right to withdraw from the arrangement without liability |
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Void contract |
occurs when the agreement lacks one or more of the elements of a valid contract |
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Unenforceable |
agreement can be this when it satisfies the technical requirements of a valid contract but will not be enforced by the court |
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Offer |
a proposal by which one party to the other where they both willingly enter a valid contract *must be a definite proposal, made with intent to contract, be communicated to the party* |
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Acceptance |
unconditional promise made by a party to be bound by the terms that the contract states *must be made with intent to contract, be unconditional,be communicated with both ppl |
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Counteroffer |
a change in the proposal by the one offering the contract constitutes a rejection of the offer |
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Preliminary negotiations |
"are you interested?" "would you give me" |
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Auction with reserve |
the auctioneer is inviting people to make offers and no contract is formed until the gavel is struck |
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Auctions without reserve |
the seller may not withdraw the item once a legitimate bid is received- highest bid obtains product |
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Consideration |
what each party gives up in return for the act or promise of the other. "quid pro quo"- bargained for exchange |
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Silence |
can be interpreted as being "acceptance" if the offeree remains silent with the intent of accepting the offer |
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Postal Reorganization Act |
it is an unfair trade practice to send unsolicited products to customers in the mail |
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Sealed bids |
construction, municipal, and service contracts are frequently awarded on the basis of this |
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Mailbox rule |
acceptance of the offer takes place as soon as it is mailed and not when it is received by the offeror
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Uniform Commercial Information Transaction |
deals with computer information transactions |
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Illusory Promise |
where the act of performance is all up to the person behind it. - the promiser has agreed to do nothing, BUT they create this fake illusion contract |
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Moral obligation |
insufficient consideration to support a contract -a parent tells child they'll give them $1,000 bc they love them- is not a valid contract |
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Past consideration |
will not support a future promise since no consideration exists |
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Pre-existing obligation |
lacks consideration bc a party is already stuck with performing under a contract so there is no new consideration for the promise |
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Guarantor |
third person does this; takes obligation of the borrower in the event of a default; a "helper" (college kid can't get a loan- parents need to co-sign) |
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Co-signer |
can be considered a surety or guarantor- depends on finances |
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Surety |
liable for the debt as though it were THEM that borrowed the money |
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Guarantor |
only secondarily liable- the one who they owe money will look to them after the debtor has defaulted and the one who they owe the money can't get it |
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Gift |
not supported by consideration and is unenforceable (promise of a gift or money) |
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Capacity |
cannot fully understand the ramifications of the contract and it's rules |
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Ratification |
occurs when a child reaches maturity and expresses an intention to be bound by the agreement or fails to dis affirm the contract |
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Contracts for necessities |
contract with (food, water, shelter,colleges) a minor cannot disaffirm. |
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Illegal contract |
Contract is this if it is criminal, tortious, against public policy |
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Electronic Signature in Global and National Commerce Act |
provides that a signature, contract, or other record used may not be called fake or not taken as legit as a hand-written signature |
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Lease |
transfer of the right to possession and use of goods for a term in return for consideration |
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Entrustment |
the possession of goods to a merchant who deals with that type of good- jeweler owes man a new engagement ring |
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Risk of loss |
important when the goods are damaged or lost |
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Shipment contract |
if the seller has to ship the goods, the risk of the goods being lost falls on the buyer |
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Destination contract |
the risk of loss does not pass until the items have been delivered to that destination |
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Bailee |
third person who owns warehouse owned by a third party |
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Express Warranty |
affirmative promises about the quality and features of the items being sold (camera is waterproof 50 ft, glue dries in 30 secs) |
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Warranty of merchantability |
shall be implied with the sale of a good |
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clickwrap license |
will accompany the installation of a program from the web |
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shrinkwrap license |
receives its name from the fact that computer software is contained in a box and packaged in a cellophane shrink wrap |
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Agents |
businesses act through them- could be an employee or third party; have the power to enter into contracts on behalf of their principles |