D216 WGU

Common Law Doctrine

Primary source of law.

Primary Source of Law

Is law.

Secondary Source of Law

Explains that law.

Revocation

Taking back your offer.

Counter Offer

Offer rejected, counter offer is a new offer.

Option Contract

Irrevocable offer that stays open for a period of time in return for a payment.

Agreement (Contract Requirement)

Offer and acceptance.

Consideration

Each side gives something of value.

Contractual Capacity

Legal capability to enter into a contract.

Legality

Legal purpose of a contract.

Void

Not enforceable.

Voidable

One party can walk away.

Usury

Charging more interest than allowed.

Unilateral Contract

Promise for an act.

Bilateral Contract

A promise for a promise.

Mailbox Rule

Acceptance occurs when mailed.

Uniform Commercial Code (UCC)

Set of suggested laws for movable and tangible goods.

Shipment Contract

Title switches when goods are given to delivery service.

Destination Contract

Title passes upon delivery to a specific destination.

UCC Open Terms

Intent to contract on reasonable terms.

Substantial Performance

Contract can still be upheld despite small omissions.

Discharge by Novation

Replacing one party in a contract with another.

Accord and Satisfaction

Agreement to pay less, then payment made.

Discharge by Statute of Limitations

Court dismissal due to time frame.

Discharge by Impossibility of Performance

Contract cannot be completed.

Mutual Rescission

Both parties back out of the contract.

Tender of Delivery

Make conforming goods available in a reasonable manner.

Insolvent

Inability to pay debts.

Perfect Tender Rule

Must deliver exactly what was promised.

Right to Cure

Opportunity to correct a contractual mistake.

Compensatory Damages

Goal to restore non-breaching party to original position.

Consequential Damages

Special circumstances resulting from a breach.

Nominal Damages

No actual damages; awarded to show wrongdoing.

Liquidated Damages

Specified amount in contract for breach.

Punitive Damages

Intended to punish the wrongdoer.

Statement of Opinion

Subjective belief or viewpoint of someone.

Express Warranty

Representation concerning quality of goods.

As Is

No warranties implied.

Warranties Disclaimers

Allows disclaiming warranties as long as stated clearly.

Warranty of Title

Right to sell an item.

Implied Warranty

Goods conform to the advertised quality.

Warranty of Merchantability

Goods fit for intended purpose.

Mechanic's Lien

Lien on non-movable physical improvements.

Artisan's Lien

Lien on movable property owned by the lienor.

Judgment Lien

Legal claim due to a lawsuit result.

Writ of Attachment

Freezing assets to cover debt owed.

Writ of Execution

Court order to seize debtor's non-exempt property.

Garnishing Wages

Collecting from a debtor's wages.

Surety

Co-signer primarily liable for debt.

Guarantor

Secondary co-signer, liable if principal defaults.

Right of Subrogation

Step into creditor's position.

Right to Reimburse

Debtor's obligation to repay.

Right of Contribution

Co-sureties pay proportional share.

Bankruptcy

Legal process for debt relief.

Secure Loan

Loan backed by collateral.

Unsecured Creditor

No collateral for claims.

Material Modification

Changing terms of a contract without consent.

Payment or Tender of Debt

Discharge obligation if offered or paid.

Chapter 7 Bankruptcy

Liquidation bankruptcy.

Means Test

Assessment of income to qualify for bankruptcy.

Voluntary Filing of Chapter 7

Available to individuals and certain entities.

Who Cannot File Chapter 7

Banks and insurance companies.

Involuntary Bankruptcy Restrictions

Limits forcing entities into bankruptcy.

Chapter 11 Bankruptcy

Reorganization for businesses.

Automatic Stay

Pausing all collection activities in bankruptcy.

Trustee Appointment

Scrutinizes assets for liquidation.

Bankruptcy Exemptions

Certain assets protected in bankruptcy.

Non-exempt Assets in Bankruptcy

Bank accounts and collectibles.