Contract Law Overview and Key Concepts

Vocabulary flashcards to help review key concepts and definitions related to contract law.

Contract

An agreement between two or more parties intended to create enforceable obligations.

Animus Contrahendi

The serious intention to create legally enforceable obligations.

Gentlemen's Agreement

An agreement that is not legally enforceable but is meant to be binding in honor.

Obligationary Agreement

An agreement that creates one or more obligations between parties.

Juristic Act

An action to which the law attaches consequences, such as creating a contract.

Consensus

Agreement by the parties on all material aspects of the contract.

Legal Capacity

The ability of parties to enter into a contract, including legal age and mental soundness.

Legality

The requirement that a contract must be lawful and not prohibited by law.

Privity of Contract

The principle that a contract creates rights and obligations only for the parties involved.

Consumer Protection Act (CPA)

A law aimed at protecting consumers from exploitation and promoting fair business practices.

Good Faith

The expectation that parties will deal honestly and fairly with each other in a contract.

Sanctity of Contract

The principle that agreements freely entered into must be honored and enforced.

Freedom of Contract

The right of parties to negotiate the terms of their contracts without interference.

Public Policy

Principles that aim to protect the interests and welfare of society in contract law.

Natural Obligation

An obligation that is not enforceable by law but has legal consequences.

Civil Obligation

An obligation that is enforceable by action in court.

Reliance Theory

The idea that contracts are based on the reasonable reliance on the appearance of agreement.

Offer

A clear and unambiguous proposal by one party to another, indicating a willingness to enter into a contract on specific terms.

Acceptance

An unequivocal assent to the terms of an offer, creating a binding agreement.

Formalities

Specific requirements, usually by law, that a contract must meet to be valid, such as being in writing and signed.

Express Term

A term of a contract explicitly agreed upon by the parties, either orally or in writing.

Implied Term

A term not expressly stated but inferred by law, custom, or the conduct of the parties as part of the contract.

Consensus Ad Idem

A meeting of the minds; genuine agreement between contracting parties on the material terms of the contract.

Void Contract

A contract that has no legal effect from the beginning (ab initio) because it lacks one or more essential elements.

Voidable Contract

A contract that is valid and enforceable until one of the parties takes action to set it aside (e.g., due to misrepresentation or duress).

Unilateral Contract

A contract where one party makes a promise in exchange for an act by the other party.

Bilateral Contract

A contract where each party makes a promise to the other party.

Contract

An agreement between two or more parties intended to create enforceable obligations.

Animus Contrahendi

The serious intention to create legally enforceable obligations.

Gentlemen's Agreement

An agreement that is not legally enforceable but is meant to be binding in honor.

Obligationary Agreement

An agreement that creates one or more obligations between parties.

Juristic Act

An action to which the law attaches consequences, such as creating a contract.

Consensus

Agreement by the parties on all material aspects of the contract.

Legal Capacity

The ability of parties to enter into a contract, including legal age and mental soundness.

Legality

The requirement that a contract must be lawful and not prohibited by law.

Privity of Contract

The principle that a contract creates rights and obligations

Consumer Protection Act (CPA)

A law aimed at protecting consumers from exploitation and promoting fair business practices.

Good Faith

The expectation that parties will deal honestly and fairly with each other in a contract.

Sanctity of Contract

The principle that agreements freely entered into must be honored and enforced.

Freedom of Contract

The right of parties to negotiate the terms of their contracts without interference.

Public Policy

Principles that aim to protect the interests and welfare of society in contract law.

Natural Obligation

An obligation that is not enforceable by law but has legal consequences.

Civil Obligation

An obligation that is enforceable by action in court.

Reliance Theory

The idea that contracts are based on the reasonable reliance on the appearance of agreement.