contracts ch 9

what are generally are governed by the common law of contracts

Contracts relating to services, real estate, employment, and insurance

both parties entering into the contract must have the capacity to do so. The law must recognize them as possessing characteristics that qualify them as competent parties.

Contractual capacity

what determines intent in a contract?

the objective theory of contracts

The theory that a party's intention to enter into a legally binding agreement, or contract, is judged by outward, objective facts. The facts are as interpreted by a reasonable person, rather than by the party's own secret, subjective intentions.

the objective theory of contracts Objective facts may include: What the party said when entering into the contract. How the party acted or appeared (intent may be manifested by conduct as well as by oral or written words). The circumstances surrounding the transaction.

Generally, a contract must include the following terms, either expressed in the contract or capable of being reasonably inferred from it:

-The identification of the parties. -The identification of the object or subject matter of the contract (also the quantity, when appropriate), including the work to be performed, with specific identification of such items as goods, services, and land. -The consideration to be paid. -The time of payment, delivery, or performance.

three elements are necessary for an offer to be effective:

-The offeror must have a serious INTENTION to become bound by the offer. -The terms of the offer must be reasonably certain, or definite (DEFINITENESS OF TERMS), so that the parties and the court can ascertain the terms of the contract. -The offer must be communicated to the offeree. (COMMUNICATION)

Even if all of the requirements listed above are satisfied, a contract may be unenforceable if the following requirements are not met. These requirements typically are raised as defenses to the enforceability of an otherwise valid contract. what are they???

-Voluntary consent. The consent of both parties must be voluntary. For instance, if a contract was formed as a result of fraud, undue influence, mistake, or duress, the contract may not be enforceable (see Chapter 10). -Form. The contract must be in whatever form the law requires. Some contracts must be in writing to be enforceable, as discussed later in this chapt

situations when intent may be lack, therefore NOT an offer

Expressions of Opinion, Statements of Future Intent, Preliminary Negotiations, Advertisements, Preliminary Agreements

The contract's purpose must be to accomplish some goal that is legal and not against public policy.

Legality.

The offeror's act of withdrawing (revoking) an offer. If the offeree ___ the offer—by words or by conduct—the offer is terminated. A ____ is a rejection of the original offer and the simultaneous making of a new offer.

REVOCATION. Rejects. counteroffer.

"a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty."

a contract

an agreement that can be enforced in court

a contract

what is it called when two or more parties agree to perform or to refrain from performing some act now or in the future.

a contract

a declaration by a person (the promisor) to do or not to do a certain act.

a promise

offer and acceptance is what?does it have to be in writing? what is a promise or commitment to do or refrain from doing some specified action in the future

aggreement. No. an offer.

Whether a contract is formed in the traditional way (on paper) or online, an essential element for contract formation is _____

agreement

this includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer.

agreement

what are the 4 requirements of a valid contract

agreement, consideration, contractual capacity, legality.

how are contracts categorized

based on legal distinctions as to their formation, performance, and enforceability.

No performance, such as payment of funds or delivery of goods, need take place for a contract to be formed in a ____ contract. a _____ contract is formed not at the moment when promises are exchanged but at the moment when the contract is performed.

bilateral. unilateral

Any promises made by the parties to the contract must be supported by legally sufficient and bargained-for (something of value received or promised, such as money, to convince a person to make a deal).

consideration

what kind of law distinguishes between promises that create only moral obligations (such as a promise to take a friend to lunch) and promises that are legally binding (such as a promise to pay for merchandise purchased); as well as demonstrates which excuses our society accepts for breaking certain types of promises.

contract law

A contract that has been fully performed on both sides is called what? A contract that has NOT been fully performed on both sides is called what? If one party has fully performed but the other has not, the contract is said to be ____ on the one side and _____ on the other, but the contract is still classified as ____.

executed contract. executory contract -executed -executory -executory

A signed lease for an apartment or a house is an ____ written contract. If one classmate calls another on the phone and agrees to buy her textbooks from last semester for $300, an ____ oral contract has been made. in a ____ contract conduct of the parties is important. requirements are: The plaintiff furnished some service or property. The plaintiff expected to be paid for that service or property, and the defendant knew or should have known that payment was expected. The defendant had a chance to reject the services or property and did not.

express,express. implied

negotiable instruments, which include checks, drafts, promissory notes, bills of exchange, and certificates of deposit. Negotiable instruments are ____ contracts because, under the Uniform Commercial Code (UCC), a special form and language are required to create them. what kind of contract? this contract has No special form is required (except for certain types of contracts that must be in writing), as the contracts are usually based on their substance rather than their form.

formal. formal. informal.

Contract law deals with, among other things, the formation and keeping of _____

promises

who governs Contracts for the sale and lease of goods

the UCC - uniform commercial code

what governs all contracts except when it has been modified or replaced by statutory law, such as the Uniform Commercial Code (UCC),or by administrative agency regulations

the common law

In contract law, offers are normally revocable (capable of being taken back, or canceled) until accepted. T/F

true

can a contract be a mixture on implied and expressed?

yes