Offer & Acceptance
A promise or commitment to perform or refrain from performing some specified act in the future.
What is an Offer?
The value given in return for a promise or performance in a contractual agreement.
What is Consideration?
The capacity required by the law for a party who enters into a contract to be bound by that contract.
What is Contractual Capacity?
A contract to do something that is prohibited by federal or state law, and as such, is void from the outset and thus unenforceable.
What is an Illegal Contract?
A mistake that occurs when both parties to the contract are mistaken about the same material fact.
What is a Bilateral Mistake?
A rule of contracts under which a court will not receive into evidence prior or contemporaneous external agreements that contradict the terms of the parties’ written contract.
What is the Parol Evidence Rule?
A common law rule that requires that the terms of the offeree’s acceptance adhere exactly to the terms of the offeror’s offer for a valid contract to be formed.
What is the Mirror Image (or Matching Acceptance) Rule?
A remedy whereby a contract is canceled & the parties are returned to the positions they occupied before the contract was made.
What is Rescission?
The legal avoidance, or setting aside, of a contractual obligation.
What is Disaffirmance?
A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period and within a specified geographical area.
What is a Covenant Not to Compete?
Knowledge on the part of a misrepresenting party that material facts have been falsely represented or omitted with the intent to deceive.
What is Scienter?
1.Contracts subsequently modified;
2.Voidable or void contracts;
3.Contracts containing ambiguous terms;
4.Incomplete contracts;
5.Prior dealing, course of performance, or usage of trade;
6.Contracts subject to an orally agree-on condition precedent;
7.Contracts with an obvious or gross clerical (or typographic) error.
What are Exceptions to the Parol Evidence Rule?
1.Revocation by the Offeror;
2.Rejection by the offeree;
3.Counteroffer
4.Lapse of time;
5.Destruction of the subject matter of the offer
6.Death or incompetence of the offeror or offeree;
7.Supervening illegality of the proposed contract.
What are methods to Terminate an Offer?
The act of refraining from an action that one has a legal right to undertake.
What is Forbearance?
A doctrine that can be used to enforce a promise when the promisee has justifiably relied on the promise, and when justice will be better served by enforcing the promise.
What is Promissory Estoppel?
A contract or clause that is void on the basis of public policy because one party was forced to accept terms that are unfairly burdensome, and that unfairly benefit the other party.
What is Unconscionable?
Persuasion that is less than actual force, but more than advice and that induces a person to act according to the will or purposes of the dominating party.
What is Undue Influence?
An amount, stipulated in a contract, that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.
What are Liquidated Damages?
An agreement that arises when an online buyer clicks on “I agree” or otherwise indicates his/her assent to be bound by the terms of the offer.
What is a Click-On Agreement?
As a general rule, a court normally will not question “how much” consideration is given; this concept concerns the fairness of the bargain.
What is Adequacy of Consideration?
The acceptance or confirmation of an act or agreement that gives legal force to an obligation that previously was not enforceable.
What is Ratification?
A standard-form contract in which the stronger party dictates the terms.
What is an Adhesion Contract?
A state statute/law that requires certain types of contracts to be in writing to be enforceable.
What is the Statue of Frauds?
An equitable remedy in which a court orders the parties to perform as promised in the contract. This remedy is normally granted only when the legal remedy (monetary damages) is inadequate.
What is Specific Performance?
A Latin phrase meaning “as much as he/she deserves.” The expression describes the extent of compensation owed under a quasi contract.
What is Quantum Meruit?
Something given or some act done in the past, which cannot ordinarily be consideration for a later bargain.
What is Past Consideration?
Items required to maintain a standard of living, such as food, shelter, clothing, and medical attention.
What are Necessaries?
A clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault.
What is an Exculpatory Clause?
When a contract has been partially performed, and the parties cannot be returned to their positions prior to the contract’s formation, a court may grant specific performance.
What is Partial Performance?
1.A party conferred a benefit on the other party.
2.The party conferred the benefit with the reasonable expectation of being paid.
3.The party did not act as a volunteer in conferring the benefit.
4.The party receiving the benefit would be unjustly enriched if allowed to retain the benefit without paying for it.
What are the Requirements of Quasi Contract?