Business Law 9

  1. contract
    a promise or 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
  2. parties to a contract
    party who makes an offer to enter into a contract is the offerer, to whom the offer is made, the offeree
  3. elements of a contract
    • agreement
    • consideration
    • contractual capacity
    • lawful object
  4. defenses to enforcement of contract
    • genuineness of assent
    • writing and form
  5. form contracts
    offers goods to buyers on take it or leave it basis, majority of contracts in US are made this way
  6. sources of contract law
    • common law of contracts
    • uniform commercial code
    • restatement of the law contracts
  7. the common law of contracts
    developed from early court decisions that became precedent for later decisions. majority of common law has been developed from state court decisions
  8. uniform commercial code
    creates a uniform system of commercial law among the 50 states and normally takes precedence over the common law of contracts
  9. restatement of the law contracts
    document is advisory only; it is not a law
  10. classical law of contracts
    according to this theory; parties were free to negotiate contract terms without government interference.
  11. modern law of contracts
    according to this theory; parties may negotiate contract terms subject to government regulations.
  12. classification of contracts
    • bilateral and unilateral contracts
    • express and implied in fact contracts
    • quasi-contracts (implied in law)
    • formal and informal contracts
    • valid, void, voidable, and unenforcable contracts
    • executed and executory contracts
  13. bilateral
    promise for a promise
  14. unilateral
    promise for an act
  15. express contract
    is a contract espressed in oral or written words
  16. implied-in-fact contract
    contract implied from the conduct of the parties
  17. quasi-contract (implied-in-law)
    implied by law to prevent unjust enrichment and unjust detriment
  18. formal contract
    requires special form or method for creation
  19. informal contract
    requires no special form or method for creation
  20. valid contract
    meets all the essential elements to establish a contract
  21. void contract
    no contract exists
  22. voidable contract
    where one or both the parties have the option of avoiding or enforcing the contract
  23. unenforcable contract
    cannot be enforced because of a legal defense
  24. executed contract
    a contract fully performed on both sides
  25. executory contract
    contract that is not fully performed by one or both the parties
  26. equity
    doctrine that permits judges to make decisions based on fairness,equality, moral rights, and natural law.
  27. legally enforceable
    if a party fails to perform a contract, the other party may call upon the courts to enforce the contract
  28. genuineness of assent
    consent of parties must be genuine; not obtained by duress, undue influence, or fruad
  29. writing and form
    law requires certain contracts in writing or in certain form; failure may be raised against enforcement of contract
  30. types of formal contracts
    • negotiable insturments (checks, drafts, notes)
    • letters of credit (agreement to pay a sum of money)
    • recognizances (bail bond; pay if event occurs)
    • contracts under seal (wax sealed)
Card Set
Business Law 9
Nature and Classification of Contracts