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Ch. 6 Contracts
Business Law- Overview and Formation of Contracts
| Term | Definition |
|---|---|
| PrommissOR | Makes the promise |
| PromissEE | Receives the promise |
| Statute of Frauds | States that certain contracts must be in writing to be enforced EX. Contract for the sale of goods for $500 or more under UCC |
| Bilateral Contract | Involves two promises and two performances |
| Unilateral Contract | Involves one promise, followed by one performance, which then triggers a second performance |
| Express Contract | Created when the parties have expressly agreed on the terms. |
| Implied Contract | Agreement is reached by the parties actions. |
| Quasi-Contract | One party suffers losses as a result of another party's unjust enrichment |
| Elements of a Contract | 1. Offer and Acceptance 2. Consideration 3. Mutual Assent 4.Competent Parties 5. Legal Subject Matter |
| Valid Contract | Has the necessary elements |
| Void Contract | Agreements that have not been formed in conformance with the law from the outset of the agreement and cannot be enforced by either party. |
| Unenforceable contract | One that meets the elements required by law but is subject to a legal matter |
| Forbearance | Ask someone NOT to do something |
| Advertisement | Not an offer, but invitation to make an offer |
| After the Offer... | Revoke Rejection Counteroffer Acceptance Operation of Law |
| Mailbox Rule | Offer effective upon receipt Acceptance effective upon dispatch |
| Mistake | A belief that is not in accordance with the facts |
| Consideration | What is given in exchange for something else. Involves: 1. Legal detriment to the promissee or benefit to the promisor 2. Bargained for exchange |
| Social Promise | Doesn't have elements of contract, cannot take to court. EX. Aunt give you car when you graduate college |
| Competent Parties | Voidable contracts: Minors, mentally incompetent, exception: drunk/drugged not intentionally but by another Void Contracts: Declared insane in court of law |
| Misrepresentation | 1. False info 2. Did not know that it's false 3. Other party relies on info 4. Other party is damaged |
| Fraudulent Misrepresentation | 1. False info 2. Knowledge that is false 3. Other party relies on info 4. Other party is damaged |
| Sources of Law | 1. State common law- case law (less than $500) 2. State statutory law- UCC |
Created by:
ginganinjaem
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