1. What are the four elements of a contract
    • The four elements of a contract are:
    • 1. agreement based on offer and acceptance
    • 2. compentent parties
    • 3. consideration
    • 4. legal purpose
  2. What is a bilateral contract?
    A bilateral contract requires an exchange of contractural promises. A default is the failure to perform a promise.
  3. What is a unliateral contract?
    A unilateral contract requires the exchange of a promise for an act.
  4. What are the elements of an offer?
    • The elements of an offer are:
    • 1. Expressed intent to contract
    • 2. Definite terms
    • 3. Communicaton to the offeree
  5. What are the three elements of an acceptance?
    • 1. Unconditional and unequivocol acceptance - conditional responses add terms or leave open material terms.
    • 2. by the person to who the offer was made
    • 3. communicated to the offeror by apprpriate word or act.
  6. Every person is presumed to have contractual capacity unless his impairment is obvious. What is obvious?
    Minors, the insanne, the intoxicated and arificial legal entites (corporations ) have either no or limited contractual capacity. Generally, if one of the parties is incompetent, his executed contracts are valid until rescinded and his executory contracts are invalid until ratified (affirmed).
  7. When does a minors minority end?
    The day before reaching the legal age of majority.
  8. What rights does a minor have relative to contracts?
    A minor may disaffirm an executed contract during a reasonable time after reaching majority, but may not ratify a contract until reaching majority. He must disaffirm or ratify the entire contrat if he disaffirms or ratifies any of it. A minor who misrepresents his age is not prevented from later disffirming the contract. The other party can disaffirm it on the grounds of misrepresentation. A minor may disaffirm a contract to sell real property and reclaim that property even if its title has passed to a innocent third party, but he may not recover persona property that has passed to a third party.
  9. A minor may not use his minority to avoid what?
    • 1. court-approved contracts.
    • 2. contrcts required by law. - conscription
    • 3. Educational loans
    • 4. business contracts - if he acts as a businessman, and not a minor
    • 5. contracts for necessaries - food medical care, shelter
    • 6. life insrance contracts - after the age of 14
  10. A corporaton's powers are limited by its charter. Executory contracts beyond its corporate powes are called what?
    Ultra vires - contracts that may be recinded by either party. The rule of ultra vires has become impaactical as businesses have become increasingly diversified.
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