Business Law Quiz 2 Study Guide

Business Law Quiz 2 Study Guide - I CONTRACTS a binding...

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I. CONTRACTS: a binding agreement that the courts will enforce a. Three requirements for a contract a. Rule of Law: four requirements must be met in order to have a valid contract: parties must agree to the contract, there must be an intention to enter the contract, the purpose must be legal, and the parties must have contractual capacity—physically and mentally able to enter contract. b. Two forms of contracts i. Bilateral Contract a. Rule of Law: A bilateral contract is formed when both parties make a promise; thus both parties are contractually obligated to commit to promise ii. Unilateral Contract a. Rule of Law: A unilateral contract is formed when one party makes a promise, and only this party is contractually obligated. Typically a promise in exchange for an action (completion of the action being acceptance). Although offer may be removed at any time before acceptance, there is a fairness exception: if the action is intended to be completed in good faith, offer cannot be removed. c. Four types of contracts i. Express contracts a. Rule of Law: An express contract is formed when assent is manifested in words—all of the details are spelled out ii. Implied-in fact contracts a. Rule of Law: An implied-in fact contract is formed when assent is manifested through conduct. Although facts of the contract are missing,
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Business Law Quiz 2 Study Guide - I CONTRACTS a binding...

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