Chapter 5 How Contracts Arise

contracts for sale of goods - personal property such as clothing, furniture, foodstuffs, motor vehicles, appliances

Exceptions to mirror image rule -

relies on the form of an agreement, examining the parties' actions and words.

Formalist theory of contract law

by fraud, misrepresentation, mistake, duress, or undue influence.

Genuine agreement can be disrupted or destroyed

reasonable

If no time limit for acceptance is mentioned in offer, offer must be accepted within a ___________________ time.

expiration of time

5 ways an offer can end: revocation, rejection, counteroffer, death or insanity and ____________________

legality

6 element of contract: offer, acceptance, genuine agreement, consideration, capacity and __________

Offer, Acceptance, Genuine Agreement, Consideration, Capacity, Legality

6 elements of a contract

rescinded

a voidable contract can be voided or ______________ by at least one of the parties

legal

void contract - not ___________ at all

act

Unilateral contracts come into existence when required ________ is performed.

Express Contract

A contact stated in oral or written words is known as _____

minor

A contract can be voidable if one party was a _________________.

Bilateral Contract

A contract in which both parties make promises is known as a _________

offeree

A legal offer must include serious intent, clear and definite terms, and communication to the _________________.

Offer

A proposal made by one party that he or she is willing to enter a contract is known as _______

follow

Acceptance must meet two requirements: Unconditional and _____________ the rules regarding the method of acceptance.

when sent (as long as sent by authorized method of communication).

Acceptances sent over long distances becomes effective

Invitations to negotiate

Advertisements are considered _____

sellers normally have limited merchandise to sell.

Advertisements in newspaper treated as invitations because

Contract

Any agreement that is enforceable by law is known as a ______

promises

Bilateral contracts come into existence when ______________ are exchanged.

bilateral

Characteristics of a contract: valid, void, voidable, unenforceable, _____________ and unilateral, express and implied; oral and written

Voidable, Unenforceable, Express Contract, Implied Contract

Contracts can be classified in what four ways?

Void contract has no legal effect and voidable contract is when the contract can be voided

Difference between Void contract and voidable contract

Express is stated in words or written and implied is when it happens in action

Difference between a express contract and implied contract

Bilateral is when both parties make promises and unilateral is when only one party makes a promise

Difference between bilateral and unilateral contract

Void is when it can be voided, Unenforceable is when it can't be upheld by the court

Difference between void contract and unenforceable contract

Yes

Is an oral contract enforceable in the court of law?

to know the exact terms and provide proof of the agreement.

Put contracts in writing

communicated

Revocation becomes effective when received or _____________________ to the offeree.

binding

The promise to do a favor does not create a ___________ contract.

Made seriously, must be definite and certain, and must be communicated to the offeree

Three Requirements of an offer

rules

To be valid an acceptance must be unconditional and follow the __________ regarding methods of acceptance.

Unconditional and communicated back to party, the acceptance must be a mirror image of the offer

To be valid an acceptance must meet what two requirements

limitations

Unenforceable contracts may not be upheld because of the statute of __________________.

both

bilateral contract - ___________ parties make promises

written

express contract - stated in oral or ______________ words

one

unilateral contract - ___________ party makes a promise in exchange for an act

Valid contract

A contract that is legally binding and fully enforceable is known as __________

express or implied

4 classifications of contracts: valid, void, voidable and unenforceable, bilateral or unilateral, oral or written and

Revocation, Rejection, Counter-offer, Expiration of Time, Death or Insanity

5 ways an offer can come to an end

Unilateral Contract

A contract in which one party makes a promise in exchange for an act is known as a _________

Implied Contract

A contract that comes about by the acts of the parties is known as _______

Void contract

A contract that has no legal effect

Counter-offer

An offer that has been changed by the offer is known as ______

Acceptance

An unqualified agreement by the offer to be bound by the offer is known as _______

lack

Implied contract: Formed by action or _____________ of action.

revoked

Offer can be __________ at any time before accepted.

communicated to the offeree

Offer must be seriously intended, definite and certain, and ___________

court

unenforceable contract will not be upheld by a ___________ of law