Exam #2 Notes Chapters 8, 9, 10 (pp. 284-294), 11, 13 Chapter 8: 1) Promise- assertion that something will either will or will not happen in the future -either common law or replaced by statutory law, such as UCC -common law used for all services, employment, insurance -UCC- sale and lease of goods 2- contract- an agreement that can be enforced in court, formed by 2 or more parties who are competent 3- promisor-person making promise 4- promise- person to whom promise is made 5-objective theory of contracts- as interpreted by a reasonable person, not by personal or subjective intentions Requirements of a contact: A) Agreement- includes an offer and an acceptance B) Consideration - legal, and bargained-for consideration C) Contractual capacity- must have capacity, competent parties D) Legality- legal Still must have a) Voluntary consent (no fraud) b) Form (must be in form that law requires) 6- offeror-party making offer 7-offeree- party whom offer is made 8-bilateral contract- promise for a promise, no performance is needed for bilateral contract 9-unilateral contact- promise for an act, performance must be done. Example: contests, lotteries, offering prizes 10-formal contracts- requires specific form 11-informal contracts-does not require a speicified form to be valid 12-express contract- terms of agreement are fully and explicitly in words, oral or written 13- implied- conduct of parties, rather than words
14-executed contact- been completely performed 15- executory contract- not yet been fully performed 16-voidable contract- is valid contract, but can be avoided at option of one or more parties, example minors or fraud 17-unenforceable contract- certain legal defenses against it. Example: some contracts must be in writing. 18-void contract- no contract at all. Illegal, party was insane 19-quasi contract- implied in law, equitable contracts, avoid unjust enrichment of one party, doctor helps unconscious man, person who receives benefit cannot invoke doctrine 20-agreement-offer and acceptance 21- offer- must be serious, terms reasonably certain/definite, must be communicated to offeree -objective intention -expression of opinion, preliminary negotiations, advertisements, auctions 22-revocation- withdrawal of an offer. 23-option contract- contract where cannot revoke contract for a stipulated time period 24-counteroffer 25-mirror image rule- a common law rule that requires that the terms of the offerees acceptance adhere exactly to the terms of the offererors offer.
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