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Flashcards in Law of Contracts Deck (20)
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1
Q

What is a Promise

A

In legal terms, a promise is a commitment or undertaking that something will or will not happen in the future. The person making the promise is the promisor, and the person to whom the promise is made is the promisee. The definition of a promise includes both types of commitments.

2
Q

What is a Contract

A

A contract is “a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.” All contracts are promises, but not all promises are contracts.

3
Q

What is Specific Performance?

A

If, in the opinion of the court, money is an inadequate remedy, the court may force the promisor to perform the breached promise. That is a remedy known as specific performance.

4
Q

What makes a Contract Legally Enforceable

A

A contract is legally enforceable if the promisee is entitled to a contract remedy and the promisor fails to perform.

5
Q

What three ingredients must be present for Contract Formation

A

Taken collectively, offer, acceptance, and consideration form a conceptual unit known as contract formation.

6
Q

What are the two fundamental requirements of an enforceable contract?

A

Agreement

Consideration

7
Q

Agreement

A

An agreement is created when one party accepts an offer made by the other. An enforceable contract requires an agreement, or bargain, between parties.

8
Q

Consideration

A

Consideration refers to a benefit or performance that is bargained for and given in exchange for the promise. A promise must be supported by consideration to be enforceable as a contract.

9
Q

What are four formation defects?

A
  1. Lack of contractual capacity of one or both parties.
  2. Lack of genuine assent to the bargain due to factors such as fraud, misrepresentation, mistake, duress, or undue influence.
  3. A contractual purpose that is illegal or otherwise contrary to public policy.
  4. Lack of proper formality when legal formalities are required.
10
Q

Voidable Contract

A

A voidable contract is when one or more parties have the power, by electing to do so, to avoid the legal relations created by the contract

11
Q

Disaffirmance

A

Avoidance of a voidable contract is commonly designated “disaffirmance.”

12
Q

List the four contract types

A

Formal and informal

Unilateral and bilateral

Express and implied

Executed and executory

13
Q

Three Types of Formal Contracts

A
  1. Contract Under Seal

Actual seal put on written contract

  1. Recognizance

Promise in court to make certain payments unless a specified event occurs

  1. Negotiable Contract

Governed by the Uniform Commercial Code (UCC)

Negotiable instruments (e.g., checks)
Documents of title (e.g., warehouse receipts)
Investment securities (e.g., stocks)
14
Q

Unilateral Contract

A

A contract containing only one promise is said to be unilateral (“one-sided”). A unilateral contract involves a promise in exchange for performance of an act. Unilateral contracts result when only one of the parties makes a promise.

15
Q

Bilateral Contract

A

Most contracts, however, are bilateral (“two-sided”), involving at least two promises, in which each party is simultaneously a promisor and a promisee. Bilateral contracts, therefore, involve a promise in exchange for a return promise.

16
Q
  1. What is meant by an ‘express’ contract?
A

A contract is express if it arises from the oral or written language of the parties. Assume Rania states to Omar, “I offer to sell you my motorcycle for $1,500,” and Omar responds, “I accept.” In this case, the promises are express.

17
Q

Implied in Fact

A

A promise may also be inferred from conduct other than language. In this case, the contract is said to be implied in fact.

18
Q

Implied in Law

A

Such a quasi-contract is not really a contract at all, but a form of the remedy of restitution. A quasi-contract is designed to provide a remedy when one party confers a benefit upon another and when the second party retains that benefit. If the law considers it necessary to prevent unjust enrichment of the benefited party, it implies or imposes a promise (the quasi-contract) to pay the reasonable value of the benefit conferred. Assume Dalia owes Carr $100. Dalia pays Carr by check but inadvertently makes it payable for $1,000. To prevent a windfall to Carr, the court may imply a promise by Carr (the quasi-contract) to pay Dalia $900.

19
Q

Executed Contract

A

A promise or contract is executed if it has been completed or performed

20
Q

Executory Contract

A

Executory if it is yet to be performed.