Business Law - Contracts

in an Express Contract the intentions and terms can be Stated or written

True

A contract between a Minor and an Adult is a(n) _________Contract

Voidable

An agreement between 2 parties to committ an illegal act is a ___________contract

Voided

What is a Agreement

When 2 peoples minds meet on any subject.

Name 2 types of Informal Contracts

Written Contract or Verbal Contract

Name 4 examples of Negotiable Instruments

Checks, Notes, drafts, and certificates of deposit

Bilateral Contract

Contract consisting of a mutual exchange of Promises; sale of a car, you have a Buyer and a Seller.

Simple Contract

Contract that is not formal

Written Contract

Contract with terms in writting

Oral Contract

Contract with terms spoken

When is a contract actually an UNenforceable agreement? Can it be made enforceable?

If the law requires a contract to be in a particular form and it isn't, then it is Unenforceable. This can be changed by putting the contract into the correct form.

Simple Contracts are also known as

Informal Contracts

If the law requires a certain contract to be in a particular form, such as a deed to be in writing and it is not......... it is a(n) _______ contract

Unenforceable

UCC stands for:

Uniform Commercial Code

An Unenforceable Contract is Classified as a(n) _____________________________Contract Classification

Valid, Void, and Voidable

An Implied Contract is a contract that comes about from the _________of the parties.

Actions

What is an Unenforceable Contract

Agreement that is not currently binding

Unilateral Contract

Contract calling for an act in consideration for a promise; ie.. $400 reward for lost dog (the 2nd party could be anyone and no one is obligated as a 2nd party)

Quasi Contract

Imposition of rights and oblications by law without a contract. ie..unjust enrichment... paying $1600 for a $1500 car by mistake. The seller has to return the extra $100.

A Voided Contract has ____ legal effect

No

Why are most Business Contracts written rather than oral?

This is so no disputes arise between the parties as to the terms of the contract

When is an agreement a contract?

When an agreement meets all the legal requirements of a contract.

An Express Contract is a contract with the terms of the agreement specified in _________.

Words

Are all contracts the result of mutual promises by both parties?

Yes

What is "Under Seal"

a Formal Contract signed with (seal) or [L.S.] after the signature

What is a recognizance?

this is an Obligation entered into before a court to do an act required by law

How must a sealed contract be executed?

the formal contract signatures must have (seal) or [L.S.] following them

Executory Contract

A Contract not fully carried out. ie.. hired labor for a year, agree to pay $1500 / month. After one month they quit.

Executed Contract

A Contract that has been fully performed by all parties.

How does a contract differ from an agreement

A contract must have a business transaction as distinguished from a purely social transaction

Formal Contract

A contract that by law requires a specific form, such as being executed under seal, to be valid.

Does a Contract require a written agreement

NO

What is a Contract

1) A Legally enforceable agreement 2) a binding agreement between two or more persons that is enforceable by law

How does a contract differ from an agreement?

1) An agreement only becomes a contract when both parties agree for the agreement to become legally binding 2) a contract must involve a business transaction

Name 5 Contract Classifications

1) Void, Voidable and Valid 2) Express or Implied 3) Formal and Simple 4) Executory and Executed 5) Unilateral and Bilateral

Name 5 requirements that makes a contract valid

1) a mutual agreement between 2 or more parties 2) all parties of the contract are competent 3) the promise or obligation of each party must be supported by consideration given by each party to the contract. 4) It must be for lawful purposes 5)in some cases, it must meet formal requirements (such as under seal or being written)

Negotiable Instrument

Document of payment

What is a Voidable Contract is an _________ contract that may be set aside by _________ _______

Enforceable one party

What is a Breach of Contract

Failure to perform contractual obligations

What 2 terms must be expressed in order to have and Express Contract?

Intention to have a contract and the terms of the contract.

Unjust Enrichment

One benefiting unfairly at anothers expense

Name 2 other types of Formal Contracts

Recognizance and Negotiable instruments

What provision does the law allow if a party to a contract fails or refuses to perform it?

the law allows the other party an appropriate action for obtaining damages or enforcing performance

Explain the difference between an executor and an executed contract.

an executory is one in which the terms have not been fully carried out; an executed contract the terms are fully complete by both parties.

Recognizance

obligation entered into before a court to do an act required by law

When will the law impose a contract when no real contract exists?

when it is a business transaction such as buying a cup of coffee, or movie ticket