Business Law Study Flashcards

This set of flashcards covers key concepts and definitions in Business Law as outlined in the lecture notes.

What is a contract?

A legally enforceable agreement (does not have to be written).

What are the four required elements of a valid contract?

Agreement, consideration, capacity, and legality.

What makes a contract void?

An illegal purpose, lack of consideration, or lack of legality.

What makes a contract voidable?

Contracts involving minors, mental impairment, or intoxication.

What is an executory contract?

A contract that has not yet been fully performed.

When is acceptance effective under the mailbox rule?

When it is mailed.

What does the mailbox rule apply to?

Acceptance only.

What is not valid consideration?

A promise to do something already legally required.

What is a unilateral contract?

A promise exchanged for an act.

What is an express contract?

A contract formed by spoken or written words.

What is lost property?

Property accidentally separated from the owner.

What is mislaid property?

Property intentionally placed somewhere and forgotten.

Who has rights to lost property?

The finder has rights against everyone except the true owner.

Who gets mislaid property?

The owner of the premises where it was found.

What is abandoned property?

Property intentionally given up by the owner; the finder keeps it.

What is a bailment?

The temporary transfer of possession (not ownership) of personal property.

Who is the bailor?

The person who delivers the property.

Who is the bailee?

The person who receives the property.

What standard of care applies to a bailment for the sole benefit of the bailor?

Slight care.

What standard of care applies to a mutual benefit bailment?

Ordinary care.

What is conversion in a bailment?

Unauthorized use of the bailed property.

What is insurance?

A risk-shifting device.

Who is the insurer?

The party that assumes the risk.

Who is the testator?

The person who makes a will.

Who is the trustee?

The person who manages trust property.

What is a living trust?

A trust created during the settlor’s lifetime.

What legal relationship is created when a parking garage takes possession of a car?

A bailment.