Contract Law Super Set

Contract

A binding agreement between two or more persons that is enforceable by law

Breach of Contract

The nonperformance of a contractual duty

Capacity

The ability of both parties to understand what they are getting into with a contract

Consideration

Each party to a contract offering and receiving something of value

Genuine Agreement

An agreement that is true and genuine: a valid offer is met by a valid acceptance

Offer

A promise or commitment to perform or refrain from performing some specified act in the future.

Express Contract

A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written.

Implied Contract

A contract that comes about simply from actions and situations of the parties involved.

Bilateral Contract

A contract created by two parties in which both exchange promises

Unilateral Contract

A contract created by one party that can be came valid when another undisclosed party accepts the offer

Legality

The contract's purpose must be to accomplish some goal that is legal and not against public policy.

Serious Intent

An offer must be serious, not just an "invitation to negotiate"

Definiteness

Terms of an offer must be specific

Mirror Image Rule

A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.

Counteroffer

An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.

Disaffirmance

The legal avoidance, or setting aside, of a contractual obligation. Ex: the ability of a minor to void a contract.

Statute of Frauds

A law that requires certain contracts to be in writing to be enforceable

Discharge

The removal of legal obligations of a contract

Discharge by Performance

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised

Discharge by Agreement

Both parties mutually agree to end a contract

Involuntary Discharge

When a contract is ended because one or more parties are no longer able to complete their duties

Statute of Limitations

A law that sets a time limit for one's ability to sue over a breach of contract.

Bankruptcy

A legal process that discharges a person of their debts if it is proven that they cannot reasonably pay them

Assignee

A third party to whom the rights of a contract are transferred

Delegate

A third party to whom the responsibilities of a contract are transfered

Five Elements of Fraud

False representation of a fact, the person knowingly lied, the lie was intended to be relied on, innocent party relies on the lie, innocent party received a loss

Innocent Misrepresentation

A party to a contract does not know that a statement he or she made is untrue

Bilateral Mistake

A mistake that occurs when both parties to a contract are mistaken about the same aspect of the contract.

Unilateral Mistake

A mistake that occurs when one party to a contract is mistaken as to an aspect of the contract.

Duress

When one party forces another into a contract through use or threat of bodily or economic harm

Undue Influence

Occurs when one party to a contract is in a position of trust or power and unfairly persuades or manipulates the other party into a contract.

Unconscionability

A defense that may allow a party to potentially avoid a contract on the grounds that he/she suffered a grossly unfair burden that shocks the objective conscience.

Remedy

Legal options of correcting a breach of contract

Surety

An agreement to pay the debts of another person