Contracts (MGMT 246)

These flashcards cover key vocabulary related to contracts and their legal environment, intended for exam preparation.

Contract

An agreement that includes essential elements such as offer, acceptance, and consideration.

Unilateral Contract

A contract based on one party's promise which requires action from the other party.

Bilateral Contract

A contract where both parties make promises to each other.

Implied Contract

A contract created by the court based on circumstances to avoid unjust enrichment, without explicit agreement.

Void Contract

A contract that is unenforceable in court due to its illegal purpose.

Mutual Assent

Agreement between parties demonstrated by offer and acceptance.

Consideration

Something of legal value that each party gives up in a contract; must involve a sacrifice.

Breach of Contract

When a transaction under a contract fails, leading to potential legal action by the aggrieved party.

Statute of Frauds

Legal requirement that certain contracts must be in writing to be enforceable.

Parol Evidence Rule

A rule stating that a written contract cannot be contradicted by prior oral agreements.

Termination of Offer

Occurs when an offer is rejected, revoked, or when a specific time lapses.

Counteroffer

A response to an offer that changes the terms of the original offer, acting as a new offer.

Fraud

Misrepresentation or deceit that can negate mutual assent in a contract.

Duress

Use or threat of harm that can invalidate consent to a contract.

Specific Performance

A remedy where a court orders a party to fulfill their obligations under a contract.

Waiver of Rights

The voluntary relinquishment of a known right or privilege.

Executed Contract

A contract that has been fully performed by all parties involved.

Executory Contract

A contract that is not yet fully performed.

Voidable Contract

A contract that one party can void under certain circumstances.

Oral Contract

A contract made verbally that can be enforceable, though may face interpretation issues.

Electronic Contract

A contract that is agreed upon or formed online.

Offeror

The party who makes the offer in a contract.

Offeree

The party or parties who receive the offer in a contract.