BCOR 320 Chapter 7: Introduction to Contracts

written contracts

- reduced to writing on a permanent surface. this contract can be simply a handwritten note or any other memorandum containing the terms of the agreement, as long as it is signed by the party or parties who wish to be bound by the agreement

implied contract

A contract where rather than from oral or written words its terms are derived from - •intentions of the parties inferred by their actions, or •from customs of the trade, or •from conditions or circumstances.

entire contract

Also known as an indivisible contract, it has two or more parts. Each part is dependent on the others for satisfactory performance. Such a contract must be completely performed.

smart contract

An agreement using blockchain technology in which the terms are digitally written into the lines of code across a network that can be accessed, but not modified, by the parties to the contract.

simple contract

An informal contract made without seal—even though the subject matter of the contract may be extremely complex and may involve huge amounts of money.

consideration

Each party to a contract must promise to give up something of recognized tangible or intangible value. The exchange of promises (where each party gives the other something of value) is also recognized consideration.

oral contracts

Not in writing or signed by the parties, but it is a real contract created entirely by the conversation of the parties.

competent parties

Parties to a contract must be legally competent and capable of understanding what they are doing. (Example: legal age, mentally stable).

proper form

Requirements for contracts are known as proper form. Some contracts must not only be in writing but also follow a prescribed form, such as containing the signatures of the parties.

executory contract

a future act or obligation remains to be performed under its terms, completely executory if no part of it has been performed, partly if some parts have been and some have yet to be

contract

a legally enforceable agreement created when two or more competent parties agree to perform, or avoid performing, certain acts that they have a legal right to do, and, that meet certain legal requirements which may be enforced in court

void contract

agreements lacking one or more essential elements of a contract

valid contract

agreements meeting all legal terms resulting in obligations legally enforceable

voidable contracts

agreements that may be rejected by one of the parties for a legally acceptable reason.

The subject matter of a simple contract may: Multiple select question. be a mortgage for a home. be a deed to convey title. be extremely complex. involve huge amounts of money.

be extremely complex. involve huge amounts of money.

tangible personal property

movable personal property, such as a vehicle, kitchen table, or computer.

elements to make a contract legally enforceable

offer and acceptance, mutual agreement, consideration, competent parties, legality of purpose, proper form

The terms of implied contracts may be understood from the: Multiple select question. parties' actions. customs of trade. circumstances. written agreement.

parties' actions. customs of trade. circumstances.

Contracts must be used in the transfer _______ of _______ or property.

real, personal

format contract

referred to as specialty contract, written under seal, few are required to have seal, many states stopped using

common law

source of contract law regarding sale of fixed assets, services, or intangibles.

express contract

specifically states the terms of agreement between the parties (written or oral)

contracts apply to

tangible personal property or transactions in goods

offer and acceptance

•An offer is made by the offeror and accepted by the offeree. This indicates both parties intent to enter into the agreement.

At any particular time, a contract may be-

•Awaiting the first to commence obligation. •In the process of completion. •Fully completed.

mutual agreement

•The parties must have a clear understanding of what they are undertaking and the contract must show mutual agreement (that is meeting of the minds called "genuiness of assent").

legality of purpose

Intent of the contract must not violate the law. Courts will not enforce a contract that violates the law.

divisible contract

Is made up of two or more parts, and each part's performance is independent of the others.

UCC defines a contract as

the total legal obligation which results from the parties' agreement as affected by the Uniform Commercial Code or any other applicable rules of law