Contract Law Overview

These flashcards cover essential concepts in contract law, focusing on definitions and key terms discussed in the lecture notes.

Valid Contract

An agreement that includes elements of agreement, consideration, capacity, and legality.

Consideration

Legal value exchanged in a contract; adequacy of consideration does not matter.

Statute of Frauds

Requires certain contracts, such as those for the sale of goods over $500, to be in writing.

Capacity

The legal ability of a party to enter into a contract.

Legality

Ensures that the contract's terms are not against the law; illegal contracts are void.

Duress

Threats of harm that compel a party to enter into a contract.

Fraud

Involves false facts, intent, reliance, and resulting harm in a contract context.

Mutual rescission

Both parties agree to cancel the contract.

Accord and Satisfaction

Agrees to alter the contract's terms and completes terms satisfactorily.

Compensatory Damages

Damages awarded for direct loss due to breach of contract.

Specific Performance

A legal remedy requiring a party to fulfill their contractual obligations, typically related to unique goods.

Merchant

An individual with a higher standard of conduct in contractual obligations.

Perfect Tender Rule

Allows rejection of goods for any discrepancies from the contract.

Implied Merchantability

Goods must function as expected under normal circumstances.

Third Party Beneficiary

A third party that may benefit from a contract which they can sue on if rights are not fulfilled.