Chapter 8

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  1. Promise
    a commitment or willingness to be bound to a contract obligation.
  2. Goods
    Tangible (touchable), movable personal property.
  3. Bilateral contract
    An agreement that contains mutual promises, with each party being both a promissory and promise.
  4. Unilateral contract
    A contract in which the promissory does not receive a promise as consideration; an agreement whereby one makes a promise to do, or refrain from doing, something in return for a performance, not a promise.
  5. Express contract
    A contract in which parties show their agreement in words.
  6. Implied-in-fact contract
    A legally enforceable agreement inferred from the circumstances and conduct of the parties.
  7. Implied-in-law contract
    A quasi-contract.
  8. Quasi-contract
    Often referred to as an implied-in-law contract, is not a true contract. It is a legal fiction that the courts use to prevent unjust enrichment and wrongdoing. Courts permit the person who conferred a benefit to recover the reasonable value of that benefit. Nonetheless, the elements of a true contract are not present.
  9. Enforceable contract
    A contract that can be enforced in court.
  10. Unenforceable contract
    A contract that cannot be enforced in court.
  11. Valid contract
    A contract that contains all of the proper elements of a contract.
  12. Void contract
    A contract that is empty, having no legal force; ineffectual, unenforceable.
  13. Voidable contract
    Capable of being declared a nullity, thought otherwise valid.
  14. Executed contract
    A contract that is fully accomplished or performed, leaving nothing unfulfilled.
  15. Executor contract
    An agreement that is not completed. Until the performance required in a contract is completed, it is executor.
  16. Offer
    A contractual communication that contains a specific promise and a specific demand. The offer initiates the process of making a contract.
  17. Indefiniteness
    When the terms of an agreement are not sufficiently specific, the agreement does not rise to the level of a contract because of the doctrine of Indefiniteness.
  18. Acceptance
    The contractual communication of agreeing to another's offer. The acceptance of an offer creates a contract.
  19. Mirror image rule
    The common law rule that the terms of an acceptance offer must mirror exactly the terms of the offer. Any variation of terms would make the attempted acceptance a counteroffer.
  20. Uniform Commercial Code
    The most successful attempt to have states adopt a uniform law. This code's purpose is to simplify, clarify, and modernize the laws governing commercial transactions.
  21. Merchants
    A term used in the Uniform Commercial Code to describe parties to a contract that regularly do business in the goods being sold and purchased.
  22. Mailbox rule
    The rule that an acceptance is effective once it is sent.
  23. Deposited acceptance rule
    The contractual doctrine that a binding acceptance of an offer occurs when a mailed acceptance is irrevocably placed within the postal service.
  24. Consideration
    An essential element in the creation of a contract obligation that creates a detriment to the promisee or a benefit to the promissory.
  25. Accord and satisfaction
    Payment of money, or other thing of value, usually less than the amount demanded, in exchange for cancellation of a debt that is uncertain in amount.
  26. Firm offer
    An offer in signed writing by a merchant to buy or sell goods; it gives assurances that the offer will be held open for acceptance under the Uniform Commercial Code.
  27. Option
    A contractual arrangement under which one party has for a specified time the right to buy certain property from or sell certain property to the other party. It is essentially a contract to not revoke an offer.
  28. Promissory estoppel
    Court enforcement of an otherwise unbending promise if injustice can be avoided only enforcement of the promise. A substitute for consideration.
  29. Capacity
    Mental ability to make a rational decision that includes the ability to perceive and appreciate all relevant facts. A required element of a contract.
  30. Covenants not to compete
    An agreement in which one party agrees not to compete directly with the business of the other party; may be limited by geography or length of time.
  31. Fraud
    A false representation of fact made with the intent to deceive another that is justifiably relied upon to the injury of the person.
  32. Misrepresentation
    An untrue manifestation of fact by word or conduct; it may be unintentional.
  33. Duress
    action by a person that compels another to do what he or she would not otherwise do. It is a recognized defense to any act that must be voluntary in order to create liability in the actor.
  34. Undue influence
    Influence of another destroying the requisite free will of a testator or donor, which creates a ground for nullifying a will or invalidating a gift. A contract will not be binding if one party unduly influences the other since the parties have not dealt on equal terms.
  35. Mutual mistake
    A situation in which parties to a contract reach a bargain on the basis of a incorrect assumption common to both parties.
  36. Unilateral mistake
    Arises when only one of the parties to a contract is wrong about a material fact. It is not usually a basis for rescinding a contract.
  37. Third-party beneficiaries
    Persons who are recognized as having enforceable rights created for them by a contract to which they are not parties and for which they have given not consideration.
  38. Assignment
    A transfer of contractual rights.
  39. Assignor
    An original contracting party who assigns or transfers contractual rights or duties or both to a third party.
  40. Assignee
    A third patsy, who is not an original contracting party, to whom contractual rights or duties or both transferred. This party may enforce the original contract.
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Chapter 8
2015-02-28 20:39:26

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