Contract Law Part 2 Test

contract

any agreement enforceable by law

offer

a proposal by one party to another intended to create a legally binding agreement

acceptance

the second party's unqualified willingness to go along with the first party's proposal

genuine agreement

an agreement that is true and genuine: a valid offer is met by a valid acceptance

express contract

a contract statement that may be oral or written

implied contract

a contract that comes about from the actions of the parties

bilateral contract

a contract that contains two promises; one party promises to do something in exchange for the other's promise to do something else

unilateral contract

a contract that contains a promise by only one person to do something, if and when the other party performs some act

invitations to negotiate

invitations to deal, trade, or make an offer

mirror image rule

the terms stated in the acceptance must exactly mirror or match the terms of the offer

counter offer

a response to an offer in which the terms of the original offer are changed

revocation

the taking back of an offer by the offeror

rejection

a refusal of an offer by the offeree that brings the offer to an end

capacity

the legal ability to enter into a contract

minor

a person who has not yet reached the age of adulthood

majority

the status of reaching the age of adulthood, 18 in most states

emancipated

freeing someone from the control of another; especially a parent's relinquishing authority and control over a minor child

disaffirm

to show the intent not to live up to a contract

ratification

the act of agreeing to go along with a contract that could have been avoided

Statute of Frauds

a state law that requires that certain contracts be in writing so that there is evidence that the contract exists and that it has certain definitive terms

consideration

the exchange of benefits and detriments by the parties to a contract

forbearance

the act of not doing what you have the right to do

unconscionable

an agreement in which the consideration is so out of line with the actual value of the subject matter and so unfair that it shocks the court's conscience

adhesion contract

a take-it-or-leave-it offer made by a party who holds most of the power in a bargaining session

promissory estoppel

The principle that a promise made without consideration may nonetheless be enforced to prevent injustice (when there is reliance on the promise)

statute of limitations

establishes a time limit for suing in a civil case, based on the date when the breach occurred or was discovered

breach of contract

when one party to a contract fails to perform the duties spelled out by the contract

duress

the act of destroying somebody's free will by force, threat of force, or bodily harm (grounds for avoidance)

undue influence

when the dominating party to a relationship exerts pressure to a weaker person to enter into a contract that benefits the dominator

remedy

a legal means of enforcing a right or correcting a wrong

damages

payment recovered in court by a person who has suffered an injury

punitive damages

money payments for damages that go beyond what the innocent party actually lost and that are designed to punish the wrongdoer

injunction

a court order that prevents a party from performing a specific act

Parol Evidence Rule

Prohibits the introduction into evidence of oral statements made prior to or with the execution of a written contract

rescission

A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made.

mistake

Erroneous belief, at contracting, that certain facts are true.

misrepresentation

Untrue statement of fact that causes a person to contract as they reasonably rely on the statement.

fraud

A misrepresentation of a material fact with intent to deceive - intentional and reckless.

nominal

Consideration that is merely a token amount,not the actual value

voidable

A term applied to a contract that one or both parties have the ability to either withdraw from or enforce.

specific performance

An equitable remedy in which the court orders the contract to be performed as agreed to by the parties.

coersion

The practice of persuading someone to do something by using force or threats.