Contracts: Principles of Autonomy and Security

Vocabulary flashcards for key concepts and terms related to contracts, autonomy principles, and legal agreements.

Autonomy Principle

The law empowers individuals to make and receive enforceable promises.

Expectation interest

A remedy aimed at placing the non-breaching party in the position they would have been in if the contract was fully performed.

Reliance interest

A remedy designed to compensate the promisee for losses incurred from relying on the promise.

Restitution interest

A remedy that seeks to restore the non-breaching party to the benefit they conferred to the breaching party.

Hawkins v. McGee

Legal case where the court ruled that the non-breaching party may recover damages based on the difference between actual performance and full performance.

Objective manifestation of mutual assent

The standard for determining whether a contract has been formed based on the reasonable person’s interpretation of the parties' actions.

Offer

A manifestation of willingness to enter into a bargain that justifies another in understanding that their assent is invited and will conclude it.

Counteroffer

A response to an offer that changes its terms, effectively rejecting the original offer.

Unilateral contract

A contract in which one party makes a promise in exchange for the other party’s performance of an act.

Implied promise

A promise that is not expressly stated but can be inferred from the actions or behavior of the parties.

Liquidated damages

A predetermined sum of money that a party agrees to pay in the event of a breach of contract.

Promissory estoppel

A legal doctrine that prevents a promisor from going back on a promise, due to the promisee’s reasonable reliance on it.

Statute of Frauds

A legal doctrine requiring certain contracts to be in writing and signed to be enforceable.

Misrepresentation

A false statement that induces another party to enter into a contract.

Condition precedent

A condition that must be met before a duty to perform under a contract arises.

Good faith

A legal obligation to act honestly and fairly in the performance and enforcement of a contract.

Breach of contract

The failure of a party to perform any term of a contract without a legitimate legal excuse.

Indemnification

A protection against loss or damage, often involving one party compensating another for losses.

Duties of performance

The obligations imposed on parties to carry out according to the terms of a contract.

Anticipatory repudiation

A declaration by one party that they will not be performing their contractual obligations.