Law Study Guide Test #2 - By Gerald & Michelle

Law Study Guide Test #2 - By Gerald & Michelle -...

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LW270 Study Guide for Exam 2 Chapter 10 -Contract: a promise for the breach of which the law gives a remedy or the performance of which the law recognizes as a duty (a duty that can be enforced in court). - Elements for a valid contract: Agreement (offer + acceptance), consideration (something of legal value in exchange for a promise or an act), capacity (in fact=mental or in law=minors-must have both), and legality (must be legal or else void). -Bilateral contracts are promises for promises (to accept the offer the offeree need only promise to perform). Unilateral contracts are promises for an act (the offeree can accept only by performance). - An express contract fully and explicitly states the terms of the agreement in words (oral or written). An implied-in-fact contract is implied from the conduct of the parties. -Implied-in-law (quasi contracts) is a fictional contract imposed on parties by a court in the interests of fairness and justice; usually, quasi contracts are imposed to avoid unjust enrichment of one party at the expense of another. - Apply the concept of equity to contracts -Executed contract is a contract that has been fully performed on both sides. Executory contracts are those that have not been fully performed by one or more parties. - Valid : a contract that has all the elements necessary for contact formation. Void : this contract has no legal force or binding effect (a contract is void if its purpose was illegal). Voidable : this is a valid contract that can be avoided by one or more parties (contracts by minor are voidable at the minor’s option). Unenforceable : a contract that cannot be enforced because of certain legal defenses (for example, if a contract has to be in writing and isn’t). Chapter 11 Requirements of an OFFER: 1. Intent a. Objectively determined b. Present c. Clear 2. Definiteness a. All elements of agreement b. Sufficiently clear so that what was promised can be determined 3. Communication a. To the offeree Page 1 of 10
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LW270 Study Guide for Exam 2 b. Effective when received Requirements of ACCEPTANCE: 1. Intent a. Objective b. Indication of willingness to enter into an agreement 2. Exact a. Mirror image rule b. No material changes from the offer 3. Communicated a. Acceptance is effective on dispatch by the same or faster means as the offer was communicated i. Mailbox rule - effective when dispatched Revocability of an offer: 1. General Rule: an offer can be terminated by the offeror anytime before acceptance a. Must show serious intent b. Actual communication 2. Exceptions: a. Option contract – a promise to hold an offer open for a period of time. Grants an irrevocable offer in exchange for consideration. b. Firm offer – UCC (Uniform Commercial Code) i. Merchant ii. Offer in writing – signed iii. Buy or sell goods iv. Promises to keep offer open c. Promissory Estoppel i. Promise ii. Communicated iii. Detrimental reliance Page 2 of 10
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LW270 Study Guide for Exam 2 iv. Offeror knows or should have known v. Stop the offeror from revoking the offer
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Law Study Guide Test #2 - By Gerald & Michelle -...

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