Studied by 1 person
what does intention mean?
all parties know the rights and promises within the contract + they can sue or be sued
what does offer and acceptance mean?
when one party offers something and the other accepts it unconditionally
meeting of minds
bribing is a form of negating the top condition
lapse
expiration of the offer
revocation
revoking your offer before acceptance
option agreement
an exception to revocation
this gives one party the option to keep the offer on the table for a period of while they get something in return; if the party that is given the option does not want to go ahead with it, they can let the option expire
what are some ways that are considered the proper communication of the contract
party accepts the offer in the same way that is requested
can be communicated by action alone, without verbal or written confirmation
acceptance of mail: when the offer is put in the mil
acceptance of email: when the offer is received by the systemand enters the information system
consideration
price that parties are willing to pay in order to gain the benefits from the contract
what are some exceptions to considerations
you agree to accept a lower price to settle a debt
if it is made under a seal
what is a seal
special stamp put on contracts with a one-sided agreement —» indicates the seriousness of the agreement + intention to be legally bound by the promise
legality
cannot be doing anything illegal
what are some breach of contract thingys
product fails to meet the quality/description that was noted in the contract
product is not delivered
product is delivered after delivery date
project remains incomplete after deadline
no payment was made
unintentional breach
fulfillment of the contract depends on the successful completion of another
what must the non-breaching party do if the contract is breached
the non breachers do not need to complete their contract obligations if the breach was major and heavily impacted the contract
the non breachers must carry on with the contract is the breach was minor and related to a small contractual term/warranty
true or false: breach of warranty does end contractual obligations
false —» breach of warranty does not end contractual obligations, breach of contract does
how to determine damages?
the court-issued damages are meant to put the non breachers back to where they were before the contract
what is the correct way to measure damages
notion that the damages must be least profitable to plaintiff & least burdensome to defendant
unenforceable agreements
these elements must exist to relieve a party from its obligations:
defensively: party may raise an objection to enforceability if it is sued
assertively: regardless of whether a breach has occurred, the party can ask to have it unenforceable & if they make a convincing claim, then they can be relieved
misrepresentation of material fact
when one party persuades another party into a contract by a false statement of fact, not opinion
the contract can be rescinded by the deceived if the deceiving was unintentional
if the misrepresentation was negligent, the deceived is entitled to monetary damages + order of rescission
economic duress
people are pressured into the contract due to serious economic harm
undue influence
when one party’s ability to excerise free will is restricted by the other party —» this is often a relationship bound situation therefore there is a power imbalance
unconscionable agreement
terms are unreasonably one-sided so the court won’t allow it to be enforced; this usually involves a vulnerable party
minors
dealing with minors is difficult; parents will not be held responsible unless they are signed on as guarantors
capacity
those under the influence or suffering from mental illness can claim they lacked the capacity to be in the contact
what should one do in a breach of contract
ignore it
if it is minor
negotiate compromise to bring a balance between you & the other party
seek ADR
litigate differences in court
in what conditions would the offer end
if it is specifed in the offer
death or insanity
revocation: must communicate it to be effective
rejection of the offer presented
counter offer —» the initial offer would be cancelled
option agreement
Note 
Flashcard (40)