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Contract
Understanding the elements and characteristics of a contract
| Term | Definition |
|---|---|
| acceptance | unqualified willingness by the offeree to go along with the offer |
| benefits | the obtaining by the promisor of that which he had no prior legal right to obtain |
| bilateral | offer is accepted by offeree through communication of the promise to the offeror |
| capacity | legal ability to enter into a contract (minors, mentally incapacitated, and intoxicated) |
| consideration | exchange of benefits and detriments by the parties to an agreements |
| counteroffer | any change in the terms of the offer |
| death | offeror dies |
| detriments | any loss or harm to a person or property; relinquishment of a legal right, benefit, or something of value |
| duress | overcoming a person's free will by use of force or by threat of force or bodily harm |
| economic duress | threats to a person's business or income |
| emancipation | severing of the parent-child relationship |
| express | contract statement that may be written or oral |
| firm offer | a written offer for goods that states the period of time during which the offer will stay open |
| forbearance | refraining from doing something that one has a legal right to do |
| fraudulent misrepresentation | party to a contract deliberately makes an untrue statement of fact; must prove deliberate, deception, and gain |
| genuine agreement (assent) | a valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree |
| illusory promises | clause or wording that allows party to escape from legal obligation |
| implied | contract that comes about from the actions of the parties |
| insanity | offeror is declared insane |
| legality | the quality or state of being in accordance with the law |
| mentally incapacitated | lacking the ability to understand the consequences of his or her contractual acts |
| mirror image rule | terms of the acceptance must match exactly (mirror) the terms of the offer |
| mutual mistake (bilateral mistake) | both parties are mistaken about an important fact |
| nominal consideration | token amount in a written contract where either the parties cannot or do not wish to state the amount |
| offer | proposal by one party to another with intent to create a legal binding agreement |
| offeree | offer made to this person |
| offeror | makes the offer |
| option | the offeree gives the offeror something of value in return for a promise to keep the offer open for a set period of time |
| oral | created by two or more people speaking to each other |
| past performance | an act that has already been performed cannot be considered in a contract |
| price fixing | competitors agree on certain price ranges within which they will sell their products |
| rejection | refusal by the offeree |
| restrictive convenant | agreement not to be complete in a region for a period of time |
| revocation | taking back of an offer by offeror |
| statute of frauds | requires that certain contracts be in writing to be enforceable |
| unconscionable | so grossly unfair or oppressive that it would shock the conscience of the court |
| undue influence | unfair and improper persuasive pressure within a relationship of trust |
| unenforceable contract | contract that court will not uphold, usually because of some rule of law |
| unilateral | offeror promises something in return for offeree's performance and indicates that performance represents acceptance |
| unilateral mistake | an error on the part of one of the parties |
| usury | state sets a max interest rate |
Created by:
ellabrotherton
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