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Study guide test #2 - NATURE OF CONRACTS Definition of a...

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NATURE OF CONRACTS Definition of a Contract – a promise or set of promises for the breach of which the law gives remedy, or performance of which the law recognizes as a duty Elements of a contract OAC offer ( 1. The Offeror must have serious intention to become bound by the offer. 2 . The terms of the offer must be reasonably certain or definite so that the parties/court can determine the terms of the contract 3 . The offer must be communicated to the offeree), acceptance (voluntary act by the offeree that shows agreement to the terms of the offer), consideration ( 1 .something of sufficient value must be given for exchange. 2 . Usually there must be a bargained for exchange; lack of consideration: preexisting duty, past consideration, illusory promises) capacity: in the right mind able to make a contract legality: the action of the contract is legal meeting of the minds: parties agree on same thing formal requirements: are there any formal requirements to make this contract legal? Bilateral & Unilateral Contracts bi: promise for a promise no performance needed at the time of formation uni : promise for an act; formed at the moment the contract is performed Objective theory of contracts a party’s intention to enter into a legally binding agreement or contract, is judge outward, objective facts ( 1. what the party said when entering into the contract, 2. how the part acted or appealed, and 3. the circumstances surrounding the contract) as interpreted by a legal person Valid/void/voidable contracts based on checklist (above) Valid offer identification of parties, contract, consideration, time of performance, description. Define: promise or commitment: to do or restrain from something specified in the future. Offeror (gives offer) can revoke offeree (presented to) can reject or counter offer or make option contract: a payment to keep offer open Valid acceptance must be clear, in complete agreement to the offer, communication must e in form and timely as stated by the offer, silence may work rarely. Implied in fact contract : conduct of the parties defines the terms of the contract. (ex. some one receiving nursing care) Express contract: the terms of agreement are fully and explicitly stated in words, oral or written. Quantum Meruit: quasi contract - defendant receives quantum Meruit “as much as they deserve” as decided by the courts, the extent of compensation owed under a contract implied in law Termination of Offer by operation of Law : lapse of offer UCC (uniform commercial code) allows for 90 days, destruction of subject matter of the offer, death or incompetence of Offeror or offere, illegality Capacity: minors capacity : can disaffirm contract at minor’s will except necessaries, ratification - becoming of age, or misrepresentation age ; Incompetent persons : voidable until court has ruled incompetence then void, valid if made before incomp. ; Intoxicated persons: voidable if intox is to the point that one lacks that the mental capacity to make the contract Unconscionably:
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