Chapter 9

actual contract

A contract that is either express or implied-in-fact is called

implied in fact contract

a contract in which agreement between parties has been inferred from their conduct

unenforceable

a contract in which the essential elements to create a valid contract are met but there is some legal defense to the enforcement of the contract

unilateral contract

a contract in which the offeror's offer can be accepted only by the performance of an act by the offeree; a "promise for an act."

executed contract

a contract that has been fully performed on both sides; a completed contract

executory contract

a contract that has not been fully performed by either or both sides.

letter of credit

an agreement by the issuer to pay a sum of money on the receipt of an invoice and other documetns

express contract

an agreement that is expressed in written or oral words.

valid contact

consists of an agreement between the parties, supported by legally sufficient consideration, between parties with contractual capacity, and accomplishes a lawful object

bilateral contract

contract entered into by way of exchange of promises of the parties.

voidable

contract in which one or both parties have the option to void their contractual obligations

void

contract that has no legal effect

equity

doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law is called doctrine of

implied in law contract

equitable document whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed

Article 2A of the Uniform Commercial Code

leases of automobiles, lease of aircraft, and other leases involving goods are subject to what contract law

Uniform Computer Information Transaction Act

model act that establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses

informal contract

no special form or method required for their creation, and thus, the parties to this contract can use any words they choose to express their contract

recognizance

party acknowledges in court that he or she will pay a specified sum of money if a certain event occurs

Acceptance

refers to a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts

consideration

refers to something of legal value given in exchange for a promise.

genuineness of assent

requirement that a party's assent to a contract be genuine

agreement

requires an offer by the offeror and an acceptance of the offer by the offeree

Article 2 of the Uniform Commercial Code

sale of equipment, automobiles, computers, clothing, and such involve sales contracts subject to what contract law

objective theory of contracts

says that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

negotiable instruments

special form of contract that satisfies the requirements established by Article 3 of the UCC. A negotiable instrument is a type of formal contract; formal contracts are contracts that require a special form or method of creation.