Understanding Key Terms Concept of Contracts

Annotations:

• Offeree accept the contract 

1. Leaglity

   Annotations:

   • Illegal contracts
2. Offer

   Annotations:

   • proposal by one party to the other with ability to create a legal binding agreement
3. Offeree

   Annotations:

   • an offer made by a person

Annotations:

• Something a party is not willing to recieve

1. Bilateral

   Annotations:

   • Contains 2 promises
   1. Express

      Annotations:

      • a contract statement that may been written
      1. Nominal Consideration

         Annotations:

         • token amount in any written contract when either of the parties can't wish to state the amount
         1. Past Performance

            Annotations:

            • an act that is already been performed can't be considered in a contract
            1. Unilateral Mistake

               Annotations:

               • error on the part of one party 
               1. Unilateral

                  Annotations:

                  • contains a promise by only one person to do something
               2. Valid Contract

                  Annotations:

                  • including all elements recognized by court
         2. Revocation

            Annotations:

            • a person takes back the offer
            1. Statue of Frauds

               Annotations:

               • requires a certain contract in writing 
         3. Unconscionable

            Annotations:

            • grossly unfair or oppressive that it would shock the conscience
         4. Undue Influence

            Annotations:

            • unfair and improper persuasive pressure within a relationship of trust 
            1. Usury

               Annotations:

               • charging too high of an interest rate
2. Capacity

   Annotations:

   • Ability to enter into a new contract
   1. Mentally Incapacitated

      Annotations:

      • Lacking ability to know the consequences of the persons contractual acts
   2. Mirror Image Rule

      Annotations:

      • terms of acceptance must match exactly the terms of offer
   3. Mutual Mistake (Bilateral Mistake)

      Annotations:

      • both parties are mistaken about the important fact
      1. Offeror

         Annotations:

         • the person that makes the offer
         1. Rejection

            Annotations:

            • refusal by offeree
            1. Unenforceable contract

               Annotations:

               • a contract that court will not holdup or hold back
3. Economic Duress

   Annotations:

   • a threat to a person's business
   1. Firm Offer

      Annotations:

      • written offer for goods that is stating the period of the time the offer is available 
      1. Price Fixing

         Annotations:

         • competitors agree on a certain price ranging from which they will sell 
         1. Restrictive Covenant

            Annotations:

            • agreement not completed in a region 
4. Fraudulent Misrepresentation

   Annotations:

   • when a party makes an untrue statement of fact 

Annotations:

• exchange of benefits and detriments by the two parties

1. CounterOffer

   Annotations:

   • an exchange of another offer
   1. Forbearance

      Annotations:

      • not doing something you have the legal right to do
2. Death

   Annotations:

   • when Offeror dies
   1. Voidable Contract

      Annotations:

      • one or more parties can get out of contract for some legal reasons
3. Detriments

   Annotations:

   • any kind of loss suffered: or giving up something
4. Duress

   Annotations:

   • Overcoming a person's free will by use of force/harm
5. Emancipation

   Annotations:

   • serving the parent-child relationship
   1. Oral

      Annotations:

      • created by two or more people speaking to one another
   2. Written

      Annotations:

      • Contract terms are written so that both parties know the exact terms
6. Insanity

   Annotations:

   • offeror is declared insane

Annotations:

• valid offer that has been made by the offeror with also a valid acceptance being execrised by an offeree

1. Illusory Promises

   Annotations:

   • clause or wording that lets a party to leave a legal obligation

Annotations:

• a contract that comes from the actions of different parties

Annotations:

• when the offeree gives the offeror something of value in return for a promise to keep the offer open to a certain time

1. Void Contract

   Annotations:

   • without legal effect