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Flashcards in Business Law Tst 3 Deck (27)
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1

Contract

Legally enforceable agreement

2

4 parts of a contract

Agreement
Consideration
Capacity
Legality

3

Elements of offer and acceptance

Intent
Definite and certain terms
Communication

4

Unilateral Mistake

Doesn’t void contract
Mistake by one side

5

Mutual Mistake

Mistake by both sides on material fact of case.

6

Misrepresentation of law

Untruthful assertions by one of the parties about a material fact

7

Undue influence

Person in power takes advantage of one a relationship they have with another person (Dr. convincing patient to get surgery they don’t need.

8

Duress

Party is under pressure to accept deal. Gun to head

9

Promissory Estoppel

Party makes promise knowing the other party will rely on it.
Other party relies on promise
Promise is enforced to avoid injustice

10

Partial payment of debt

Depends on whether debt is liquidated or unliquidated. Partial payment of liquidated debt is not sufficient consideration for discharge. However partial payment of a unliquidated amount maybe.

11

Bilateral Contract

Promise for Promise

12

Unilateral contract

Promise for performance

13

Capacity

Legal ability to enter into contract. Individual is deemed to have mental ability to understand rights and obligations under contract.

(Minors and mentally incompetent)

14

Parental liability

Parents are not generally liable for children’s contracts. Maybe held liable for children’s actions under tort law.

15

Legality

Contract must be able to be oerfirmed legally. Otherwise it is void.

16

Usury contracts

Not enforceable and can lead to forfeiture of interest and principle
(In Texas 18%, 6% if not written)

17

Unconscionable contracts

Shockingly unfair contracts

(Substantive= substance of contract is unfair.)

(Procedural= way contract was put together is unfair)

18

Sources of law

UCC
Common Law

19

Implied contracts

Quantum Meruit

Sum of money to be payed for work done when amount due is not legally stipulated.

20

Quasai contracts

Unjust enrichment

Obligation of one party to another imposed by law independently of an agreement between parties.
(One party takes advantage of another)

21

Statute of frauds

Requires contract to be in writing.
Land, marriage, anything that can’t be performed within one year.

22

Parol evidence rule

Prohibits use of oral or written testimony unless there is ambiguity in the contract.

23

Third party beneficiary

2 parties benefit another independent party

24

Discharge

Terminate or end a contract

25

Difference in material and immaterial breach

Mat.= one party doesn’t do an important part of the contract (won’t pay) this can void contract

Immaterial.= one party doesn’t do minor part (pay late) contract can still be performed. Party who didn’t breech can sue for damages

26

Damages

Compensatory for economic loss
Benefit of bargain
Out of packet damages

27

Specific performance

One trick pony. Breach of contract for something that is one of a kind