Chapters 12 & 13: Contracts

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Chapters 12 & 13: Contracts
2011-05-04 16:56:39

Flashcards for the MGT 340 final.
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  1. What does our court system need a strong foundation in?
    contract law
  2. What is a contract?
    a promise or a set of promises enforceable by law
  3. What is a contract as defined by the American Law Institute?
    a voluntary set of promises that a court will enforce for private parties
  4. Why was the U.C.C. (Uniform Commercial Code) created?
    to make a uniform understanding between trade
  5. What does Article II of the U.C.C. deal with?
    the sell of goods
  6. What is a bilateral contract?
    a contract between two parties that includes two promises and two performances to be conducted by both parties therein (i.e., buying a car for $5,000. The buyer brings the money and gives it to the seller and the seller gives the title and car to the buyer.)
  7. What is a unilateral contract?
    one party makes a promise and the other party acts and responds to that promise; a promise in exchange for performance (i.e., lost dog poster. You cannot sue based on breach of contract until they perform (bringing the dog forward). You are not obligated to pay them until they find the dog. However, they cannot be sued for not finding the dog.)
  8. What is an express contract?
    the parties overtly and expressly manifest their intent to enter into an agreement (i.e., a lease)
  9. What is an implied in fact warranty?
    a contract inferred by the behavior of the parties (i.e., a patient's obligation to pay the doctor for a visit, even if no written papers are signed)
  10. What is an implied by law (quasi) contract?
    a legal theory where the court treats the parties as if they have a contract when in fact they don't
  11. What does it mean for a contract to be void?
    no contract exists because a legal requirement is missing (i.e., selling cocaine)
  12. What does it mean for a contract to be voidable?
    contract can be enforced, but can also be cancelled by one of the parties (i.e., contracts with minors and individuals with mental disabilities)
  13. What does it mean for a contract to be unenforceable?
    This situation occurs when all five requirements to make a contract legally enforceable are met, but something else says the contract is no good (i.e., 30 years down the road, Becky tries to say that Aubrey breached the contract. However, statute of limitations comes in and says that it’s not okay to life because it's been too long.), I was a little tipsy
  14. What does it mean for a contract to be executory?
    we’re still waiting for all the parties to perform as required under the contract
  15. What does it mean for a contract to be executed?
    all the parties have done what they were supposed to
  16. What are the 5 requirements that must be met in order for a contract to be legally enforceable?
    • 1. Agreement - a meeting of the minds (there is an offer and an acceptance)
    • 2. Consideration - bargain for legal value (what is given up in exchange for something)
    • 3. Capacity
    • 4. Genuineness of Assent (parties agree on the same thing)
    • 5. Legality of Purpose
  17. What are the two parts of the agreement?
    the offer and acceptance
  18. What is a valid offer?
    a promise to do something or refrain from doing something (not joking around here); communicate the offer to the offerree
  19. What is an option contract?
    an irrevocable offer to the offeror's proposed contract
  20. What is the mirror image rule?
    acceptance terms must reflect offer terms
  21. What is the mailbox rule?
    acceptance is effective, even if never received
  22. What is consideration?
    bargain for legal value that one party agrees to pay or provide to secure the promise of another
  23. What 3 types of contracts have to be in written form?
    • Contracts for the sell of land or real estate
    • Contracts for the sell of goods over $5K
    • Contracts in consideration of marriage
  24. Define the parole evidence rule.
    when a contract has been reduced to a writing and it is the intent of the parties that the written document represents the entire agreement, neither party can introduce oral or written evidence to prove or disprove the written contract
  25. Explain fraud.
    someone knowingly and intentionally discloses false information to a party or not disclosing certain information to a party
  26. What is scienter?
    the intent to deceive
  27. Explain duress.
    forcible entrance into a contract
  28. Explain undue influence.
    one party to a contract uses a close personal relationship with the other party to gain contractual benefits