Intro to Business contract test
Explain legality
Contract can not involve any illegal acts
Voidable
Contract that CAN be rejected by one party on legal grounds (teaching contract)
Explain offer
A proposal by the offeror to the offeree indicating entering a contract
Bilateral
Both sides make a guarantee
What kinds of contracts must me in writing
Marriage Year Land/rental prop. Executer Goods over $500 Suretyship
Explain consideration
The exchange of things of value that creates a bond between the parties
Explain genuine agreement
When a valid offer meets a valid agreement
Void
A contract that is not legally binding from the moment it is made
Unenforceable
A contract that is valid but a court will not enforce it
Valid
6 elements are met and contract is legally binding
Statue of fraud
Every state requires that certain kinds of contracts be in writing to be enforceable
Explain capacity
Legally being able to enter into a contract
Implied
Occur because of the actions of the parties
Elements a contract must meet
Offer Acceptance Genuine agreement Consideration Capacity Legality
Unilateral
Only one guarantee made based on the actions of another
Express
Stated in words, may be oral or written
Revocation
Taking back of an offer by the offeror before it gets accepted
Mirror image rule
The acceptance must not change the terms of the original offer in any way
Explain acceptance
The agreement of the offeree to be bound by the terms of the offeror
