FS Law Compend
The contract between a principal and an agent creates a relationship called
agency
Valid Contract
Enforceable by law
The violation of the terms of a contract is referred to as
breach of contract
Whatever the promisor demands and receives as the price for his promise is called
consideration
The election to void a contract is called
disaffirmance
The right a minor has to avoid a contract is termed
disaffirmance
When on promises to refrain from doing something, his conduct is known as
forbearance
Formal contract
made under a seal
Bilateral contract
mutual exchange of promises
Void Contract
not enforceable by law
The party who appoints the agent is the
principal
Agent
the party appointed by the principal to act in his name in contracting with a third party
Power of Attorney
the written contract of agency
A contract made by a legally declared insane person is
void
The Statue of Frauds states that for contracts classified under this statue to be enforceable they must be
written contracts
A minor who engages in business may avoid contracts arising from such business
F
A void contract is one that is enforceable by law
F
An executory contract is one that has been carried out and completed
F
Contracts made by a person who has become so intoxicated that he cannot understand the meaning of his acts are void
F
Fraud, duress, and undue influence render contracts void
F
If a minor chooses to treat a contract with an adult as binding, the adult may avoid it becaseu the other is a minor
F
If the promisor has no right to do an act, forbearance is valid consideration
F
Past performance is valid consideration
F
When one party to a contract breaches it, the other party has the right to sue for breach of contract, but he must excercise this right within the time fixed by a statue which is called
Statue of Limitations
A breach of contractual obligation other than money is
default
Special Agent
one who is authorized by his principal to transact a specifit act or a specific series of acts
The two essential elements of a contract are
there must be an offer there must be an acceptance
A contract made by a person who is intoxicated, but aware of the consequences of his/her actions is
valid
Consideration is defined as something of value in exchange for which a promise is given
T
Consideration is whatever the promisor demands and receives as the price for his promise
T
Death or incapacity of the principal terminates the agency
T
A contract which is based upon acts being done in consideration for a promise is called
a unilateral contract
General Agent
one who is authorized to carry on all of his principal's business at a particular place or all of his principal's business of a particular kind
Generally, a promise is binding upon a person only when he receives consideration
T
Performing or promising to perform what one is already obigated to do is invalid consideration
T
Sone contracts made by a minor are voidable at the minor's option
T
The Statue of Frauds requires that some contracts be in writing in order to be enforceable
T
The consideration in a sales contract is generally expressed in terms of money and is known as the price
T
The election to avoid contract is called disaffirmance
T
The relationship created by agency imposes upon the principal and the agent certain duties and obligations to third parties
T
The usual remedy for breach of contract is to sue for damages
T
A contract that is of no legal effect is
void
Unilateral Contract
One sided contract
Principal
Party who appoints another to act in his name in forming contracts with third parties
The statue listing certain classes of contracts which must be in writing to be enforceable is called the
Statue of Frauds
Consideration may be the making of a promise, the doing of an act, or the making of a promise to refrain from doing an act which can lawfully be done
T
Contracts limiting the freedom of marriage are void
T
For certain contracts to be enforceable they must be in writing according to the Statue of Frauds. They include
contracts for sales of $500 or more contracts that can't be completed in one year
A contract made with which of these people would be considered void
judicially declared insane person
In order to be enforceable, a valid contract must meet which of the following requirements
mutual agreement competent parties supported by consideration lawful purpose
Mutual mistakes as to the existence of the subject matter renders a contract
void
A contract in which undue influence was proven is considered
voidable
A contract made by a person who is intoxicated as to be unaware of the consequences is
voidable
A contract may be voided by a person who consented to the termas of the contract under duress
T
A contract may be voided by a person who consented to the terms of the contract under undue influence
T
A contract may be voided by a person who have been misled by fraud
T
A contract which lacks consideration is generally not enforceable by law
T
A contract, the subject of which is to commit a crime, is a void contract
T
A minor has the legal right to disaffirm a voidable contact at anytime during his minority or within a reasonable time after reaching majority
T
A mutual mistake as to the existence of the subject matter renders a contract void
T
An agreement in which the promise of one person is made in consideration of marriage must be in writing in order to be enforceable
T
A contract made by an insane person who has not been declared so judicially is
voidable
A contract that may be set aside by at least one of the parties is
voidable
Contracts in which fraud is proven are considered
voidable
Consideration
whatever the promisor demands and receives as the price for his promise
