Business Law 220 - The Law of Contracts

These flashcards cover key concepts and terms from Business Law 220, focusing on the law of contracts.

Law

Rules by which civilization is ordered.

Rights

The legally recognized ability to exercise power and control over an action or object.

Constitution

The supreme law of the land; no law can out rank it.

Statute

A law enacted by Congress (federal) or the legislature (state).

Case Law

Law established by the outcome of former court cases (Common Law).

Executive Order

A directive issued by the President or a governor to manage the operations of government.

Judiciary

The branch of government that interprets and applies the law.

Legislative

The branch of government responsible for enacting laws.

Freedom

The fundamental respect for the individual, protected by law.

Stare Decisis

The legal principle of settling an issue based on precedent.

Equity

Principles of fairness used to provide justice in situations where strict application of the law would result in injustice.

Individual Rights

Rights that belong to the individual, emphasizing liberty and the ability to exercise property rights.

Common Law

Law developed through court decisions rather than statutes.

Magna Carta

A document signed in 1215 limiting the power of the king and establishing certain rights for nobles.

Sovereignty

The authority of a state to govern itself or another state.

Contract

An agreement between two or more parties creating enforceable obligations.

Consideration

Something of value exchanged between parties in a contract.

Legality

Requirement for contracts to be for a lawful purpose.

Mutual Consent

The agreement by both parties to enter into a contract.

Unconscionability

A contract that is so unfair that it shocks the conscience of the court.

Parole Evidence Rule

A rule that restricts the use of oral statements to contradict written contracts.

Statute of Frauds

Legal requirement that certain types of contracts must be in writing.