Flashcards in Business Law Tst 3 Deck (27)
Legally enforceable agreement
4 parts of a contract
Elements of offer and acceptance
Definite and certain terms
Doesn’t void contract
Mistake by one side
Mistake by both sides on material fact of case.
Misrepresentation of law
Untruthful assertions by one of the parties about a material fact
Person in power takes advantage of one a relationship they have with another person (Dr. convincing patient to get surgery they don’t need.
Party is under pressure to accept deal. Gun to head
Party makes promise knowing the other party will rely on it.
Other party relies on promise
Promise is enforced to avoid injustice
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.
Promise for Promise
Promise for performance
Legal ability to enter into contract. Individual is deemed to have mental ability to understand rights and obligations under contract.
(Minors and mentally incompetent)
Parents are not generally liable for children’s contracts. Maybe held liable for children’s actions under tort law.
Contract must be able to be oerfirmed legally. Otherwise it is void.
Not enforceable and can lead to forfeiture of interest and principle
(In Texas 18%, 6% if not written)
Shockingly unfair contracts
(Substantive= substance of contract is unfair.)
(Procedural= way contract was put together is unfair)
Sources of law
Sum of money to be payed for work done when amount due is not legally stipulated.
Obligation of one party to another imposed by law independently of an agreement between parties.
(One party takes advantage of another)
Statute of frauds
Requires contract to be in writing.
Land, marriage, anything that can’t be performed within one year.
Parol evidence rule
Prohibits use of oral or written testimony unless there is ambiguity in the contract.
Third party beneficiary
2 parties benefit another independent party
Terminate or end a contract
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
Compensatory for economic loss
Benefit of bargain
Out of packet damages