Contract Laws

Nota:

• When the offeree accepts the offer

1. Bilateral

   Nota:

   • contains 2 parties
   1. Mentally Incapacitated

      Nota:

      • Lacking the ability to understand the consequences of his or her contractual acts.
2. Consideration

   Nota:

   • Exchange of benefits and detriments by the parties to an agreement
   1. Mirror Image Rule

      Nota:

      • Terms of the acceptance must match exactly (mirror) the term of the offer.
3. Legality

   Nota:

   • Illegal contracts
   1. Valid contract

      Nota:

      • includes all elements recognized by the courts.
      1. Voidable contract

         Nota:

         • One or more parties can get out of contract for some legal reason.

Nota:

• Something not previously entitled to recieve

1. Capacity

   Nota:

   • Legal ability to enter into a contract.
   1. Mutual Mistake

      Nota:

      • Both parties are mistaken about an important fact.
2. Counteroffer

   Nota:

   • Any change in the terms of the offer.
   1. Nominal Consideration

      Nota:

      • Token amount in a written contract where either either the parties cannot or do not wish to state the amount.
3. Insanity

   Nota:

   • Offeror is declared insane

Nota:

• Offeror Dies

1. Duress

   Nota:

   • Overcoming a person`s free will by use of force or by threat of force or bodily harm.
   1. Economic Duress

      Nota:

      • Threats to a person`s business or income
   2. Firm Offer

      Nota:

      • A written offer for goods that states the period of time during which the offer will stay open.
      1. Offer

         Nota:

         • Proposal by one party to another with intent to create a legal binding agreement.
         1. Offeree

            Nota:

            • Offer made to this person
            1. Offeror

               Nota:

               • Makes the offer.
               1. Option

                  Nota:

                  • the offeree gives the offeror something of value in return for a promise to keep the offer open for a set period of time.
                  1. Oral

                     Nota:

                     • Created by two or more people speaking to each other.
                     1. Past Performance

                        Nota:

                        • An act that has already been performed cannot be consideration in a contract.
                        1. Price Fixing

                           Nota:

                           • competitors agree on certain price ranges within which they will sell their products.
                           1. Rejection

                              Nota:

                              • Refusal by the offeree.
                              1. Restrictive covenant
                                 1. Revocation

                                    Nota:

                                    • Taking back of an offer by offeror.
                                    1. Statue of Frauds

                                       Nota:

                                       • Requires that certain contracts be in writing to be enforceable.
                                       1. Unconscionable
         2. Undue influence

            Nota:

            • Unfair and improper persuasive pressure within a relationship of trust.
2. Genuine Agreement (Assent)

   Nota:

   • A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offense.
   1. Unilateral

      Nota:

      • Contains a promise by only one person to do something if, and when, the other party performs a certain act.
      1. Usury

         Nota:

         • charging too high of an interest rate.
         1. Written

            Nota:

            • contract terms are written so that both parties know the exact terms.
3. illusory Promises

   Nota:

   • Clause or wording that allows party to escape from legal obligation.

Nota:

• Any loss suffered; anything given up

1. Emancipation

   Nota:

   • Severing of the parent-child relationship
   1. Express

      Nota:

      • Contract statement that may be written or oral
   2. Forbearance

      Nota:

      • Not doing something that you have the right to do.
2. Fraudulent Misrepresntation

   Nota:

   • Party to a contract deliberately makes an untrue statement of fact.
   1. Unenforceable contract
      1. Unilateral Mistake

         Nota:

         • an error on the part of one of the parties.
         1. Void contract

            Nota:

            • without legal effect
3. Implied

   Nota:

   • Contract that comes about from the actions of the parties.