Contracts Key Terms

Nota:

• Unqualified willingness by the offeree to go along with the offer

1. Benefits

   Nota:

   • something that someone was not previously entitled to receive
   1. Bilateral

      Nota:

      • contains two promises
      1. Detriments

         Nota:

         • any loss suffered; anything given up
      2. Implied

         Nota:

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

      Nota:

      • offeror dies
2. Capacity

   Nota:

   • legal ability to enter into a contract
   1. Consideration

      Nota:

      • exchange of benefits and detriments to an agreements
3. Counteroffer

   Nota:

   • any change in the terms of the offer 

Nota:

• going against a person's free will by force, threat, or harm to a person

1. Economic Duress

   Nota:

   • threats to a person's business or income
   1. Firm Offer

      Nota:

      • a written offer for goods that states the period of time during which the offer will stay open
      1. Mutual Mistake

         Nota:

         • both parties are mistaken about an important fact
   2. Mirror Image Rule

      Nota:

      • acceptance match terms of offer
2. Mentally Incapacity

   Nota:

   • lacking the ability to understand the consequences of his or her contractual acts

Nota:

• severing of parent child relationship 

1. Express

   Nota:

   • contract statement that may be written or verbal
   1. Illusory Promises

      Nota:

      • clause or wording that allows party to escape from legal obligation
2. Insanity

   Nota:

   • Offeror is declared insane

Nota:

• not doing something that you have the right to do

1. Fraudulent Misrepresentation

   Nota:

   • person under contract makes false statement of fact
2. Genuine Agreement

   Nota:

   • valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree
   1. Legality

      Nota:

      • illegal contracts