Essentials of Business Law chapter 7

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  1. Contract
    A legally enforceable agreement that is created when two or more competent parties agree to perform, or to avoid performing, certain acts that they have a legal right to do and that meet certain legal requirements.
  2. Tangible personal property
    Personal property that can be moved
  3. Offer
    A proposal made by the offeror to the offeree that indicates a willingness to enter into a contract.
  4. Offeror
    The person making a proposal
  5. Offeree
    The person to whom a proposal is made.
  6. Acceptance
    An indication made by the offeree that he or she agrees to be bound by the terms of the offer.
  7. Mutual agreement
    a.k.a. "A meeting of the minds" The sate of mind that exists between an offeror and an offeree and an when a valid offer has been accepted, and the parties know what the terms are and ahve agreed to be bound by them.
  8. Consideration
    The promise to give up something of value that a party to a contract has a legal right to keep, or to do something that the party is not otherwise legally required to do.
  9. Competent
    Being mentally capable of understanding the terms of a contract.
  10. Legality of purpose
    The requirement that the intent of a contract be legal for the contract to be enforceable.
  11. Proper form
    The requirement that the form of a contract be correct for the terms of the contract to be enforceable.
  12. Oral contract
    An agreement that is not in writing or signed by the parties.  A contract created entirely by the conversation of the two parties.
  13. Written contract
    An agreement that is reduced to writing on a permanent surface.
  14. Express contract
    A contract that specifically states the agreement of the parties either written or oral.
  15. Implied contract
    The terms and actions of the parties dictate an implied contract.
  16. Formal contract
    A specialty contract that is written under seal.

    The seal may consist of simply the word "Seal" or "L.S." (locus sigilli), a scroll, a wafer, or an impression on the paper.
  17. Simple contract
    An informal contract made without seal

    (even though the subject matter of the contract may be extremely complex and may involve huge amounts of money).
  18. Entire contract
    An agreement that is made up of two or more parts, in which each part is dependent upon the others.  a.k.a. "indivisible contract"
  19. Divisible contract
    An agreement that is made up of two parts, each part being independent of the others.
  20. Executory contract
    A contract where a future act or obligation remains to be performed under its terms.
  21. Executed contract
    A record of an agreement that has been completed in all respects by all the parties.
  22. Valid contract
    An agreement resulting in an obligation that is legally enforceable.
  23. Void contract
    A contract that is not enforceable from the beginning because it lacks one of the requirements of a valid contract.
  24. Voidable contract
    An agreement that can be rejected by one of the parties for a legally acceptable reason.
Card Set
Essentials of Business Law chapter 7
Chapter 7
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