Law of Contract II Review

Flashcards to help review key vocabulary and concepts from the Law of Contract II course.

Contract

An agreement enforceable by law requiring offer, acceptance, consideration, intention to create legal relations, and capacity.

Privity of Contract

A principle that limits the rights and obligations arising from a contract to the parties who entered into it.

Quantum Meruit

A legal principle allowing for recovery of value for work done when no formal contract exists.

Void Contract

A contract that is not legally enforceable from the moment it is created.

Voidable Contract

A contract that may be legally voided at the option of one of the parties.

Frustration

A legal doctrine that frees parties from their obligations when an unforeseen event makes performance impossible.

Consideration

Something of value exchanged between parties in a contract, necessary for a contract to be legally binding.

Capacity to Contract

The legal ability of parties to enter into binding contracts, affected by factors like age and mental competence.

Breach of Contract

The failure of one party to fulfill their obligations under the contract.

Offer

A proposal to enter into a legally binding contract, which must be clear and definite.

Acceptance

The agreement by the offeree to the terms of the offer, resulting in a binding contract.

Conditional Offer

An offer that is contingent upon certain conditions being satisfied.

Statutory Protections under Hire Purchase Act

Legal safeguards that regulate hire purchase agreements, including rights and responsibilities of the parties involved.

Beneficial Contracts of Service

Contracts that benefit minors by providing professional experience and remuneration, which are enforceable.

Collateral Contract

A separate contract associated with the main contract that is intended to induce entry into the latter.

Tortious Liability

Legal responsibility that can arise from a tort, allowing third parties to sue for negligence if harmed by the contracted party.

Third Party Beneficiary

A person who is not a party to the contract but stands to benefit from its performance.

Agency

A legal relationship where one person (the agent) acts on behalf of another (the principal) to create legal relations.