Contract Basics
A legally enforceable agreement.
What is a contract?
A definite proposal made with intent to be bound
What is an offer?
A bargained-for exchange of something of value.
What is consideration?
The legal ability to enter into a contract.
What is capacity?
A knowingly false statement of material fact that induces someone to contract.
What is fraud?
Consideration, capacity, genuine consent, or notarization: this one is NOT an essential element of a valid contract.
What is notarization?
A store prints "Winter coats, $40, while supplies last." In most cases the ad is legally this.
What is an invitation to make offers (not a binding offer)?
A promise to give a friend a birthday gift is not a contract because it lacks this.
What is consideration?
A minor's right to cancel a contract.
What is disaffirm?
A salesperson says a restaurant has the "best burgers in town." This exaggerated opinion is not fraud and is called this.
What is puffery?
A contract for an illegal purpose, such as a deal to commit a crime, has no legal effect from the start, which makes it this.
What is void?
Sasha offers to sell her bike for $100. Ben replies, "I'll pay $80." Ben's reply is this.
What is a counteroffer (which rejects the original offer)?
Dev says, "Thanks for painting my fence last week. I'll pay you $100." His promise fails because the painting is this type of consideration.
What is past consideration?
A 16-year-old signs a two-year phone plan. The contract is generally this.
What is voidable at the minor's option?
An improper threat that overcomes a person's free will.
What is duress?
Valid until the party with the right to cancel does so.
What is voidable?
Generally, this by itself is not enough to count as acceptance of an offer.
What is silence?
A promise to do something you are already legally required to do is not valid consideration because of this rule.
What is the pre-existing duty rule (you give up nothing new)?
Food, shelter, clothing, and medical care are these, for which a minor is liable for the reasonable value
What are necessaries?
A caregiver pressures a vulnerable elderly person to sign over a house. This is the abuse of a position of trust or power.
What is undue influence?
Valid in theory, but a court will not enforce it, for example because a required writing is missing.
What is unenforceable?
Sam promises a reward to anyone who returns his lost cat. Returning the cat accepts the offer by performance, creating this type of contract.
What is a unilateral contract?
A promise of $50 in exchange for a promise to mow a lawn creates this kind of contract, promise for promise.
What is a bilateral contract?
To approve a contract after reaching legal age.
What is ratify?
This law requires certain contracts, such as the sale of land, to be in writing.
What is the Statute of Frauds?