OA 241 Chapter 18

The assent to the terms of an offer

Acceptance

Explain how a clickwrap agreement works.

An online offer where the offeree enters into the contract by clicking on a dialog box, which is on the screen.

Agreement

Bargain

A contract containing two promises, one made by each party

Bilateral Contract

What is the difference between a bilateral contract and a unilateral contract?

Bilateral contract - a contract containing two promises, one made by each party to the contract. Unilateral Contract - a contract containing only one promise in exchange for an act, often referred to as a performance

Legal competency

Capacity

A contract in which an offeree enters into a contract by clicking on a dialog box on an Internet web site

Clickwrap Agreement

Any agreement that is enforceable in a court of law

Contract

A contract that arises from the conduct of the parties rather than from their express statements

Contract Implied in Fact

A contract that is imposed by the court to prevent unjust enrichment

Contract Implied in Law

A response to an offer in which the terms of the original offer are changed

Counteroffer

To get out of a voidable contract; to repudiate

Disaffirmed or Avoided

A contract entered into over the Internet

E-Contract

Carried out or performed

Executed

How does an executory contract differ from an executed contract?

Executed contract are contracts completely carried out and those that have come into existence, but are NOT yet carried out are Executory.

That which is yet to be executed or performed

Executory

A contract in which the terms are stated or expressed by the parties.

Express Contract

Prices on merchandise and in catalogs are usually treated as "offers".

False. An invitation to negotiate or an invitation to deal.

Boarding a bus and putting money in the coin slot without saying anything to the driver is a "quasi contract".

False. Contact implied in fact.

Infants "may" ratify contract at any time during their minority.

False. May not.

A "rejection" occurs when an offeror has a change of mind and calls back an offer before it is accepted.

False. Revocation.

An oral contract for the sale of real property is an example of a contract that is "void".

False. Unenforceable.

Give an example of a contract implied in fact.

If a business has for many months delivered parts that the receiving company uses to make a product and then resell, and the two parties have long since stopped exchanging terms (because the price hasn't gone up, let's say), the parties are in an implied contract.

A contract in which the terms are not stated or expressed by the parties.

Implied Contract

For what reason does the court impose a contract on the parties when a quasi contract arises?

Imposed by court to prevent unjust enrichment.

The legal name for a minor

Infant

A request to an individual or the public to make an offer

Invitation to Negotiate; Invitation to Deal

Full age; adulthood

Majority

Under the age of majority; usually under 18

Minor

Food, clothing, shelter, and medical care that are needed by an infant, but not supplied by a parent or guardian

Necessities

Nothing; as though it had not occurred

Nullity

One to whom an offer is made

Oferee

A proposal inviting someone to enter into a contract

Offer

One who makes an offer

Offeror

As if; almost as it were

Quasi

Approve; confirm

Ratify

The refusal by an offeree of an offer

Rejection

Restore an injured person to his or her original position prior to loss

Restitution

The taking back of an offer by an offeror before it has been accepted by an offeree

Revocation

Why does a contract not usually arise when a customer offers to buy a mismarked product?

The common law of contracts treats an advertisement as being your invitation to the reader to find you and then "offer" you the price you're asking for.

Explain how a contractual agreement is reached.

To reach an agreement, one party makes an offer to another party to enter into a legally enforceable agreement.

A "bilateral" contract results when someone says "I'll sell you my stereo for $100," and the other party replies, "I'll buy it."

True.

A "void" contract is said to be a nullity.

True.

A "voidable" contract is one that is valid unless voided.

True.

It is known as a "rejection" when the offeree declines an offer.

True.

When someone says, "I'll sell you my stereo for $100," and the other party replies, "I'll buy it," a contract comes into existence, and it is in its "executory" stage.

True.

A contract that cannot be enforced for some legal reason

Unenforceable Contract

A contract containing one promise in exchange for an act

Unilateral Contract

Occurs when one person retains money, property, or other benefit that in equity and justice belongs to another.

Unjust enrichment

Good; having legal effect

Valid

Not good; having no legal effect

Void

Give an example of a void contract, a voidable contract, and an unenforceable contract.

Void Contract - For instance, an illegal contract, such as one for the sale of an item that is prohibited to be bought and sold (marijuana, for instance), is void. Voidable Contract - For example, a contract entered into between a minor and an adult is voidable by the minor, but not the minor. Unenforceable Contract - An oral contract for the sale of real property is an example of an unenforceable contract, because a real estate contract is required to be in writing to be enforceable.

Capable of being disaffirmed or voided

Voidable