Business Law - Contracts Overview

These flashcards cover essential vocabulary and definitions related to business contracts, aiding in the understanding of key legal concepts.

Contract

A promise or set of promises enforceable by law.

Agreement

The element of a contract consisting of an offer and acceptance.

Consideration

The bargained-for exchange in a contract; what each party gives and receives.

Contractual Capacity

The legal ability of a person to enter into a binding agreement.

Legal Object

The requirement that a contract must concern matters that are legal and not against public policy.

Lack of Genuine Assent

A defense to contract enforcement when one party did not freely agree to the terms due to fraud or coercion.

Valid Contract

A contract that is enforceable by law.

Void Contract

A contract that is illegal or has a defect so severe that it cannot be enforced.

Unenforceable Contract

A valid contract that cannot be enforced due to a law or statute.

Implied Contract

A contract formed by the conduct of the parties rather than explicit written or spoken terms.

Express Contract

A contract where the terms are clearly stated, either in writing or verbally.

Detrimental Reliance

When a party relies on a promise and takes action based on that promise, which may prevent revocation.

Acceptance

The agreement by the offeree to the terms of the offer.

Counteroffer

A response to an offer that includes different terms, which rejects the original offer.

Option Contract

An agreement where the offeror holds the offer open for a specified time in exchange for consideration.

Plain-Meaning Rule

The principle that the words in a contract should be understood in their ordinary meaning.