Card Set Information

2012-02-29 20:20:37
Business Law

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  1. Acceptance
    An unequivocal expression to enter into a contract based onteh terms provided in the offer.
  2. Capacity
    The mental ability to understand the nature of the terms of the contract.
  3. Compensatory Damages
    The most common remedy for breach of contract. Designed to pay the nonbreaching party for the amount of loss that has been suffered.
  4. Consideration
    Something that has value in the eyes of the law that induces another to enter into a cntract.
  5. Contract
    Promises that the courts will enforce
  6. Counteroffer
    When an offeree alters the terms of the original offer, which terminates the original offer. The offeree now becomes the offeror.
  7. Formation Defenses
    These actions invalidate what otherwise would be mutual assent. The actions include duress, fraud, mistake, and undue influence. While offer and acceptance appear to be present on the surface, the presence of a formation defense shows a lack of true mutual assent.
  8. Mirror Image Rule
    An acceptance must precisely reflect (mirror) the offer to be a valid acceptance
  9. Mitigation of Damages
    The nonbreaching party has an obligation to keep damages as low as is reasonably possible
  10. Mutual Assent
    Parties have voluntarily come to a common undertaking of the terms of the bargain. Mutual assent is the combination of a valid offer and a valid acceptance.
  11. Offer
    An unequivocal expression of party's willingness to enter into a contract.
  12. Parol Evidence Rule
    Prevents the indroduction of any documents, testimony, or other evidence that contradicts the language of a written contract. This rule only forbids that evidence that arose prior to, or at the same time, that the written contract was created.
  13. Promissory Estoppel
    An implied contract at law, wher a court rules that a contract exists even though an element of a contract is missing. Court will possibly use this where a promissee has reasonably relied on a promissor's promise and that reliance has injured the promisee.
  14. Specific Performance
    A remedy that is available for unique items, where money damages would not be adequate to compensate the nonbreaching party. Effectively, the court orders the breaching party to perform the original promise under the contract.
  15. Statue of Frauds
    A rule of evidence that requires certain contracts to be in writing or the written evidence to support the contracts' existence. These include contracts that transfer interests in real property (real estate); cannot, by the terms of the contract, be possibly performed within 1 year; answer for the debts of another; or involve the sale of goods for $500 or more.