Card Set Information
what is an offer?
a promise made by the offeror to do (or not to do) something provided that the offeree, by accepting, promises or does something in exchange.
What is mutuality of contract?
also know as mutuality of obligations, is a doctrine that requires boeth parties to be bound to the terms of the agreement.
What are the two type of contracts?
Bilateral and unilateral contracts
What are the four elements of a vaild contract?
Parties, Price, subject matter, and Time of performance
What terminates an offer?
Lapse of time, revocation of the offer by the offeror, rejection/conteroffer by the offeree, incapacity or death of either party, destruction or loss of the subject matter, and supervening illegality
what is consideration?
the basis of the bargained for exchange between the parties to a contract that is of legal value.
What are the 5 rules that indicate when the exchange is not legal consideration?
Gifts, Moral Obligations, Illusory promises, past considerations, and preexisting duties
The two terms for this devalued consideraton are:
Nominal consideration, and sham consideration
what is nominal consideration?
the value of the things exchanged are grossly disproportionate to each other so that very little is given in exchange for something of great value.
What is sham consideration?
an unspecified and indeterminable recitation of consideration that cannot support an exchange
what is mirror image rule?
a requirement that the acceptance of an offer must exactly match the terms of the original offer.
Can a contract be formed when the offeree is silent?
what is the mailbox rule?
a principle of contract law that sets the time of acceptance of an offer at the time is is posted and the time of rejection of an offer at the time it is received.
In an option contract, can a contract be revoked at any time?
No it must be with the designated time period.
What is a condition?
an event that may or may not happen, but upon which the rest of the performance of the contract rests
What is covenant?
the promise upon which the contract rests
what are the types of "timing" conditions?
condition precedent, condition subsequent, and concurrent condition
What are the methods of creating a condition?
express condition, implied in fact, and implied in law