Contract Law Flashcards

Flashcards for exam review.

Capacity (Contract Law)

The legal ability to enter into a binding agreement.

Minor (Contract Law)

Someone under the age of 18 who generally lacks the capacity to enter into a contract.

Ratification

The act of affirming a contract, making it legally binding and preventing later disaffirmation.

Disaffirmance

The act of a minor rejecting or voiding a contract.

Necessaries

Essential items (e.g., food, shelter) for which a minor can be held liable under a quasi-contract theory.

Quasi-Contract Theory

A legal theory where a contract is created by a court in the absence of a formal agreement to avoid unjust enrichment.

Misrepresentation

An untrue statement of fact that induces a party to enter a contract.

Fraud

Misrepresentation with the intent to deceive; allows the injured party to rescind the contract or sue for damages.

Duress

Coercion or pressure used to force someone into an unfavorable agreement.

Restraint of Trade

An agreement that restricts competition, such as a non-compete agreement.

Condition Precedent

A condition that must occur before a contract becomes binding.

Condition Subsequent

A condition that, if it occurs, terminates a contract.

Concurrent Conditions

Conditions that occur simultaneously, requiring each party to perform at the same time.

Expressed Condition

A condition that is clearly stated within a contract.

Implied Condition

A condition that is not expressly stated but is understood by the nature of the agreement.

Substantial Performance

When one party fulfills enough of its contract obligations to warrant payment

Discharge

The release of parties from their contractual obligations.

Speculative Damages

Damages that are not actual cannot be proven, and are not allowed.

Injunction

A court order that compels or prohibits a specific action.